Transgene's losses widen ahead of 2011 R&D results
This article was originally published in Scrip
Transgene's net losses widened during 2009 as its total revenues fell and R&D costs grew. The French firm reported a net loss of €27.3 million compared with €18 million the year before.
Its revenues fell largely on lower research grants and research tax credits although these declines were partially offset by a 211% increase in its manufacturing contracts to €2.8 million, excluding its deal with Roche. Total revenue for 2009 was down by 15% to €11.8 million.
Revenue from the clinical manufacturing and laboratory work contract with Roche rose by 5% to €2.1 million. Transgene's research grants dropped by 64% to €1.4 million, while research tax credits slipped by 14% to €4.8 million.
Operating expenses for the year grew by 9% to €39.1 million as a result of increased staff costs for R&D and business development activities. R&D spending edged up by 2% to €33 million and administrative and general costs were €6.1 million, an increase of 17%.
In the second quarter of 2010, Transgene expects to begin Phase II studies of TG4040, its vaccine therapy for chronic hepatitis C infection.
The trial will combine the candidate with the current standard of care, pegylated-interferon alpha plus ribavarin, for use in approximately 120 patients infected with the genotype 1 hepatitis C virus. Results are expected in the third quarter of 2011.
Also in 2011 the firm expects to announce interim results from its Phase IIb trial of TG4001/RG3484 for the treatment of precancerous cervical lesions caused by human papillomavirus and Phase I results for TG4023, its treatment for metastatic colorectal cancer and hepatocarcinoma.
As of 31 December 2009, Transgene held cash and cash equivalents of €64.7 million compared with €86.7 million the year before.