GLGS Glycogenesys Inc. (MM)

GlycoGenesys, Inc. (NASDAQ:GLGS), a biotechnology company focused on carbohydrate drug development, today announced results from its recently filed Form 10-Q for the quarter-ended June 30, 2005. Select Financial Highlights: The net loss applicable to common stock for the three months ended June 30, 2005 and 2004 was $(2,292,454), or $(0.22) per share, and $(2,723,822), or $(0.32) per share, respectively. For the six months ended June 30, 2005 and 2004 the net loss applicable to common stock was $(4,921,841), or $(0.48) per share, and $(5,488,547), or $(0.66) per share, respectively. The net loss applicable to common stock for the three months ended June 30, 2005 and 2004 included a $208,940 and $113,771 charge for the accretion or accrual of preferred stock dividends, respectively. The net loss applicable to common stock for the six months ended June 30, 2005 and 2004 included a $329,359 and $227,542 charge for the accretion or accrual of preferred stock dividends, respectively. "The Company's net loss applicable to common stock was approximately $430,000 less during the second quarter compared to the same period last year mainly due to reduced drug production and development expenses, as well as legal costs offset in part by costs associated with the special stockholders meeting held in May and higher preferred stock dividends," stated John W. Burns, SVP and CFO of GlycoGenesys, Inc. "For the first half of the year, the net loss applicable to common stock was approximately $570,000 less than the same period last year mainly due to lower drug production and development expenses, as well as legal costs offset by higher clinical trial costs, preferred dividends and the costs associated with the special stockholders meeting in May," added Mr. Burns. "In May, we closed on an additional $4.5 million in gross proceeds in a private placement to institutions and other accredited investors following shareholder approval of the transaction. This allows us to continue with our current Phase I dose escalation trial in solid tumors and Phase I/II trial in multiple myeloma, as well as with the preparations for initiating the planned trial for chronic lymphocytic leukemia," stated Mr. Burns. "Moreover, we continue to actively pursue a long-term funding relationship with either a biotechnology or pharmaceutical company, or with fundamental, long-term investors because we believe it would further validate our technology and provide the capital to further fund and expand our clinical trial program and pipeline development," added Mr. Burns. Select Operational Achievements For The Quarter: During the second quarter, the Company accomplished many operational achievements, including: -- The presentation by Dr. Finbarr Cotter of Barts Medical School in London of data showing that GCS-100 causes cell death in chronic lymphocytic leukemia and lymphoma cells by blocking Galectin-3's ability to co-locate with Bcl-2; -- The issuance of U.S. Patent No. 6,890,906 which covers the use of GCS-100 and other modified pectins to control angiogenesis and to treat diseases in which angiogenesis plays a role; and -- The initiation of a second site, the Lucy Curci Cancer Center in Rancho Mirage, California, in the Company's Phase I/II multiple myeloma trial. A copy of the 2005 Form 10-Q and other SEC filings are available on the Company website, www.glycogenesys.com and is also available on the SEC's website, www.sec.gov. -0- *T CONFERENCE CALL ALERT GlycoGenesys, Inc. Reports Financial Results and Events of Quarter-Ended June 30, 2005 Date: August 22, 2005 Time: 11:00 a.m. E.D.S.T. Please call: 1-877-451-8949 OR 1-706-679-0877 (international callers) to be connected between 10:50 p.m. and 11:00 a.m. E.D.S.T. Call Leaders: Bradley J Carver, President and CEO, and John W. Burns, SVP and CFO The call will be archived on the Company's website. GlycoGenesys, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Operating expenses: Research and development $ 873,646 $ 1,217,217 $ 2,393,750 $ 2,596,692 General and administrative 1,222,757 1,453,592 2,218,186 2,735,443 Total operating expenses 2,096,403 2,670,809 4,611,936 5,332,135 Operating loss (2,096,403) (2,670,809) (4,611,936) (5,332,135) Interest income 12,790 6,234 18,205 13,710 Other income 99 54,524 1,249 57,420 Total other income 12,889 60,758 19,454 71,130 Net loss (2,083,514) (2,610,051) (4,592,482) (5,261,005) Preferred stock dividends accreted or accrued (208,940) (113,771) (329,359) (227,542) Net loss applicable to common stock $ (2,292,454)$(2,723,822)$(4,921,841)$(5,488,547) Basic and diluted net loss per common stock $ (0.22)$ (0.32)$ (0.48)$ (0.66) Weighted average number of common shares outstanding 10,626,841 8,445,207 10,355,612 8,359,001 CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2005 December 31, 2004 (Unaudited) Cash and cash equivalents $ 4,139,577 $ 2,245,790 Working capital 2,228,148 828,605 Total assets 5,006,218 3,105,176 Total stockholders' equity $ 2,707,754 $ 1,346,010 *T About GlycoGenesys, Inc. GlycoGenesys, Inc. is a biotechnology company that develops and licenses compounds based on glycobiology. The Company's drug candidate GCS-100, a unique compound to treat cancer, has been evaluated in previous clinical trials at low dose levels in patients with colorectal, pancreatic and other solid tumors with stable disease and partial response documented. The Company currently is conducting a Phase I dose escalation trial to evaluate higher dose levels of GCS-100LE, a low ethanol formulation of GCS-100, at Sharp Memorial Hospital, Clinical Oncology Research in San Diego, California and the Arizona Cancer Center in both Tucson and Scottsdale, Arizona. In addition, GCS-100LE is being evaluated in a Phase I/II trial for multiple myeloma at the Dana-Farber Cancer Institute in Boston, Massachusetts and the Lucy Curci Cancer Center in Rancho Mirage, California. Further clinical trials are planned for 2005, 2006 and 2007. Further information is available on GlycoGenesys' web site: www.glycogenesys.com. Safe Harbor Statement Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including, but not limited to, risks of product development (such as failure to demonstrate efficacy or safety), risk related to FDA and other regulatory procedures, market acceptance risks, the impact of competitive products and pricing, the results of current and future licensing, joint ventures and other collaborative relationships, risks relating to raising sufficient capital to fund the Company's operations, developments regarding intellectual property rights and litigation, and other risks identified in the Company's Securities and Exchange Commission filings. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as the date hereof. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.