Company to Hold Conference Call on Monday at 8:30 AM EST to
Provide Clinical/Financial Update
Berkeley Heights, NJ, June 3, 2002
- Genta Incorporated (NASDAQ: GNTA) announced today that Genta has
received $72 million in gross proceeds from Aventis pursuant to a
purchase of common stock, according to terms of the recently
concluded collaboration for GenasenseTM, Genta's lead anticancer
compound. Genasense is a targeted inhibitor of Bcl-2, a
protein that is overexpressed in many solid and hematologic
tumors. The drug is currently in multiple Phase 3 clinical
trials for use in combination with chemotherapy for both
hematologic cancers and solid tumors.
The equity purchase was concluded following Genta's achievement
of a clinical research milestone. In this transaction,
Aventis has purchased 6,665,498 shares at $10.79 per share or 9.99%
of outstanding voting shares. The stock purchase is subject
to a minimum 2-year holding period, certain other transfer
restrictions, and a standstill agreement.
"This investment marks the final installment of upfront payments
to Genta, pursuant to our recent collaboration agreement with
Aventis," said Dr. Raymond P. Warrell, Jr., Chairman and CEO of
Genta. "Although Genta had an option to sell an additional $3
million of common stock to Aventis, the additional amount would
have required a separate review pursuant to Hart-Scott-Rodino
regulations. Following the investment, Genta's cash position
has increased to approximately $166 million. We also
anticipate a substantial decrease in Genasense-related
expenditures, attendant to cost reimbursements from Aventis after
the signing date. Reimbursements set forth in the agreement
will occur 60 days after the close of the quarter in which the
expense was incurred. Therefore, the first payments
will occur late in the third quarter. In aggregate, these
funds will enable us to accelerate completion of preclinical
programs for our other pipeline products. We are highly
enthusiastic about this partnership, having rolled out the early
stages of our collaborative programs at the ASCO meeting earlier
this month."
The Company will also be hosting a conference call to discuss
important financial and clinical updates on Monday, June 3 at 8:30
a.m. EST. The conference call can be accessed as follows:
U.S./Canada: Dial (888) 529-1867, reference Genta
Incorporated.
International: Dial (706) 643-1282, reference Genta
Incorporated.
A replay will be available two hours after the completion of the
conference call and archived for 30 days, accessible as
follows:
U.S./Canada: Dial (800) 642-1687, enter 4382561 for
conference ID.
International: Dial (706) 645-9291, enter 4382561 for
conference ID.
