GPC Biotech Reports Financial Results for First Quarter 2009

Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- * Quarter highlighted by proposed combination of businesses with U.S. biotechnology firm Agennix in new German company Martinsried/Munich (Germany) and Princeton, N.J., May 28, 2009 - GPC Biotech AG (Frankfurt Stock Exchange: GPC) today reported financial results for the first quarter and three months ended March 31, 2009. First quarter 2009 compared to first quarter 2008 The Company had no revenues in the first quarter of 2009, compared to ¤ 1.5 million for the first quarter of 2008. The decrease in revenues is due to the termination of the co-development and license agreement for satraplatin with Celgene Corporation in September 2008. Research and development (R&D) expenses decreased 74% to ¤ 1.5 million for the first three months of 2009 compared to ¤ 5.7 million for the same period in 2008. The decrease in R&D expenses is primarily due to staff reductions as a result of the restructuring plan implemented in 2008, a decrease in clinical trial costs and a credit to share-based compensation expense due to the cancellation of stock options and convertible bonds. In the first quarter of 2009, administrative expenses were ¤ 3.5 million compared to ¤ 3.5 million for the first quarter of 2008. Net loss for the first quarter of 2009 improved 39% to ¤ (4.3) million compared to ¤ (7.1) million for the first quarter of 2008. Basic and diluted loss per share was ¤ (0.12) for the first quarter of 2009 compared to ¤ (0.19) for the same quarter in 2008. As of March 31, 2009, cash, cash equivalents and available-for-sale investments totaled ¤ 11.6 million (December 31, 2008: ¤ 32.0 million), including ¤ 0.2 million in restricted cash, which is under Other Financial Assets on the balance sheet. As previously announced, in February 2009, in connection with the proposed business combination with Agennix Incorporated, the Company made a loan to Agennix in the amount of $20 million (¤ 15.7 million) in the form of a senior secured convertible promissory note. The proceeds of this loan are being used to support the clinical development of talactoferrin prior to the closing of the transaction. Net cash burn for the first quarter of 2009 was ¤ 4.9 million. Net cash burn is derived by adding net cash used in operating activities and purchases of property, equipment and intangible assets. The figures used to calculate net cash burn are contained in the Company's unaudited interim consolidated cash flow statement for the first quarter ended March 31, 2009. Quarter over quarter results: first quarter 2009 compared to fourth quarter 2008 For the first quarter of 2009, the Company had no revenues, compared to ¤ 31,000 for the previous quarter. R&D expenses decreased 56% to ¤ 1.5 million for the first quarter of 2009 compared to ¤ 3.4 million for the fourth quarter of 2008. Administrative expenses for the first quarter of 2009 decreased 29% to ¤ 3.5 million compared to ¤ 4.9 million for the previous quarter. The Company's net loss was ¤ (4.3) million in the first quarter of 2009 compared to ¤ (9.0) million for the previous quarter. Basic and diluted loss per share was ¤ (0.12) for the first quarter of 2009 compared to ¤ (0.25) for the previous quarter. Bernd R. Seizinger, M.D., Ph.D., Chief Executive Officer, said: "We are very excited about the proposed combination with Agennix and look forward to our shareholders voting on the proposed merger agreement at our annual shareholders' meeting on June 23." Year-to-date highlights To date in 2009, the Company has had the following key achievements: * Business Combination Agreement was signed, under which the Company proposes to combine businesses with U.S. biotechnology company, Agennix, Incorporated, in a new German company. Agennix has an oncology program, talactoferrin, currently in two Phase 3 clinical trials for non-small cell lung cancer. Dievini Hopp BioTech holding GmbH & Co. KG is investing ¤ 15 million in the new company. * New data on satraplatin from the SPARC Phase 3 trial in second-line castrate- or hormone- refractory prostate cancer were presented at the American Society for Clinical Oncology (ASCO) Genitourinary Cancers Symposium. The data showed an improvement in overall survival in a subset of patients refractory to docetaxel (Taxotere®). * New pre-clinical data on RGB-286638 multi-targeted kinase inhibitor were presented at the American Association for Cancer Research (AACR) Annual Meeting. The data showed that RGB-286638 demonstrates in vivo activity in several pre-clinical models of multiple myeloma. The compound has also been shown to induce cell death in multiple myeloma cells independent from the p53 status; p53 is a gene involved in the control of cell proliferation. New data in solid tumor cells were also presented. Financial guidance GPC Biotech continues to expect that the average annual cash burn of the combined entity will be approximately ¤ 30 million for 2009 and for 2010. This amount excludes one-time total transaction-related costs of approximately ¤ 7 million, which includes banking and legal fees associated with the merger for GPC Biotech, Agennix and the new entity, as well as fees for the listing of the new entity on the Frankfurt Stock Exchange. GPC Biotech expects that the existing cash of GPC Biotech and Agennix, plus the cash contribution of dievini Hopp BioTech holding as part of the proposed merger, will be sufficient to fund operations of the combined entity into the second quarter of 2010. GPC Biotech believes that it should have sufficient cash as a stand-alone entity to close the proposed merger, depending on the actual closing date. If the merger is not completed in a timely manner or at all, the ability of GPC Biotech to continue as a going concern on a stand-alone basis will be at risk. Conference call scheduled As previously announced, the Company has scheduled a conference call to which participants may listen via live webcast, accessible through the GPC Biotech Web site at or via telephone. A replay will be available via the Web site following the live event. The call, which will be conducted in English, will be held on May 28 at 15:00 CET/9:00 AM ET. The dial-in numbers for the call are as follows: Participants from Europe: 0049 (0)69 667775756 or 0044 (0)20 3003 2666 Participants from the U.S.: 1-646-843-4608 Please dial in 10 minutes before the beginning of the meeting. About GPC Biotech GPC Biotech AG is a publicly traded biopharmaceutical company focused on developing anti-cancer drugs. The Company currently has two programs in clinical development: satraplatin, an oral platinum compound and RGB-286638, a multi-targeted protein kinase inhibitor. On February 18, 2009, the Company announced plans to combine its business with U.S.-based Agennix, Incorporated in a new German company. Agennix, a privately held biotechnology company, is developing oral talactoferrin, a product candidate that is currently in Phase 3 trials for non-small cell lung cancer. GPC Biotech AG is headquartered in Martinsried/Munich (Germany) and has a wholly owned U.S. subsidiary in Princeton, New Jersey. For additional information, please visit GPC Biotech's Web site at This press release contains forward-looking statements which express the current beliefs and expectations of the management of GPC Biotech. Such statements are based on current expectations and are subject to risks and uncertainties, many of which are beyond our control, that could cause future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially depending on a number of factors, and we caution investors not to place undue reliance on the forward-looking statements contained in this press release. There can be no guarantee that the proposed merger will be approved by GPC Biotech shareholders or will close in a timely manner, if at all. Forward-looking statements speak only as of the date on which they are made and GPC Biotech undertakes no obligation to update these forward-looking statements, even if new information becomes available in the future. Taxotere® is a registered trademark of Aventis Pharma S.A. For further information, please contact: GPC Biotech AG Investor Relations & Corporate Communications Phone: +49 (0)89 8565-2693 In the U.S.: Laurie Doyle Director, Investor Relations & Corporate Communications Phone: +1 609-524-5884 Additional media contacts for Europe: MC Services AG Phone: +49 (0) 89 210 228 0 Raimund Gabriel Hilda Juhasz Additional investor contact for Europe: Trout International LLC Lauren Rigg, Vice President Phone: +44 207 936 9325 --- End of Message --- GPC Biotech AG Fraunhoferstr. 20 Martinsried Germany WKN: 585150; ISIN: DE0005851505; Index: CDAX, Prime All Share, TECH All Share, DAX; Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover, Regulierter Markt in Frankfurter Wertpapierbörse;