Biotech Values

[DewDiligence]

Genta Restructures Operations to Focus on Future Initiatives

[Who said there’s a future?]

http://biz.yahoo.com/prnews/061220/nyw087.html?.v=78

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Wednesday December 20, 10:30 am ET

BERKELEY HEIGHTS, N.J., Dec. 20 /PRNewswire-FirstCall/ -- Genta Incorporated (Nasdaq: GNTA ) today announced that the Company has restructured certain of its operations to conserve cash and focus on its oncology development operations. Last week, the Company received notice that its New Drug Application for the use of Genasense in patients with chronic lymphocytic leukemia was not approved by the Food and Drug Administration. While Genta is currently reviewing its options for response to this action, the Company has reduced its workforce by 34 people, or approximately 35%. Genta has a Marketing Authorization Application (MAA) pending in Europe for its lead anticancer drug, Genasense® (oblimersen concentrate solution for injection), in patients with advanced melanoma.

"At the end of the 3rd quarter, Genta had cash and cash equivalents totaling approximately $40 million dollars, and today's actions will result in severance costs of approximately $700,000", said Dr. Raymond P. Warrell, Jr., Genta's Chairman and Chief Executive Officer. "Review of the MAA is progressing in Europe, and we currently anticipate a decision by the CHMP for the European Medicines Agency in the first quarter of 2007. The steps we are taking today will conserve cash, while still allowing us to commercialize Genasense in Europe, retaining our options for the U.S. and focusing our capabilities in oncology drug development."
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