Genelux Corporation Reports Third Quarter 2023 Financial Results and Provides General Business Updates
- Expanded executive team as Lourie Zak appointed Chief Financial Officer -
- Extended clinical focus on systemic administration in small cell lung cancer -
- $29.9 million in cash and equivalents -
WESTLAKE VILLAGE, Calif., Nov. 14, 2023 (GLOBE NEWSWIRE) -- Genelux Corporation (NASDAQ: GNLX), a late clinical-stage immuno-oncology company, today announced financial results for the third quarter of 2023 and provided general business updates.
“The third quarter was highlighted by continued expansion of our executive team while advancing our pivotal Phase 3 study in platinum resistant/refractory ovarian cancer. Additionally, our small cell lung cancer trial is progressing,” said Thomas Zindrick, President, Chairman and CEO of Genelux. “Looking ahead, we remain focused on our ongoing trials, including initiating our Phase 2 study in non-small cell lung cancer.”
Genelux is advancing Olvi-Vec for the treatment of various cancer indications led by its ongoing OnPrime/GOG-3076 trial, evaluating the efficacy and safety of Olvi-Vec in patients with platinum-resistant/refractory ovarian cancer.
Genelux and its licensing partner, Newsoara BioPharma Co., Ltd., continue the co-sponsored Phase 1b/2 trial of Olvi-Vec in small cell lung cancer, with the first patient having been dosed. Newsoara is responsible for conducting the trial in Greater China and Genelux will have worldwide developmental and commercial rights (excluding Greater China) to all data generated from clinical trials of Olvi-Vec in China.
Genelux announced key leadership appointments to further position the company for a potential future filing of a biologics license application and commercial launch of Olvi-Vec. Ms. Zak joined Genelux as Chief Financial Officer (CFO), with an extensive background in CFO roles, including with Guitar Center Brands, Sonifi Solutions, and PBS Biotech. Ms. Zak started her biotech career at Amgen where she progressively moved into more senior positions, including Executive Director Finance, Global Commercial Operations. Ms. Zak brings years of accounting and financial management expertise to her role at Genelux as the company continues to pursue its operating plan.
Third Quarter 2023 Financial Results
Cash, Cash Equivalents and Investments: At September 30, 2023, the Company had cash on hand in the amount of $29.9 million. During the nine months ended September 30, 2023, the Company closed its initial public offering (IPO) and two private placements and received $37.8 million of gross proceeds from the offerings. The Company also received commitments through the private placements for the funding of an additional $24.0 million. Initially the additional funds were to be received by November 15, 2023, but, in November 2023, the Company agreed to extend the funding deadline for $2.0 million of the remaining committed investment amounts to March 31, 2024. The investor who was obligated to fund $22.0 million of the remaining committed investment amounts has not made such payments and has indicated that he does not intend to comply with his investment commitments through the private placements. We are currently evaluating our options to address this investor’s non-compliance with his contractual obligations. Due to the funds received through these offerings, and the conversion of preferred stock and convertible notes payable upon the closing of the IPO, the Company had a shareholders’ equity of $24.0 million at September 30, 2023. The Company expects its cash on hand at September 30, 2023 will last into the second quarter of 2025.
R&D Expenses: Research and development expenses were $2.8 million for the third quarter of 2023, as compared to $2.4 million for the third quarter of 2022. The increase was primarily due to additional manufacturing and laboratory materials and other expenses related to manufacturing activities of $0.6 million offset partially by a decrease in clinical, regulatory and consulting expense of $0.2 million.
G&A Expenses: General and administrative expenses were $2.5 million for the third quarter of 2023, as compared to $2.2 million for the third quarter of 2022. The increase was primarily due to additional employee-related costs, including new employee hires, stock compensation expenses and an increase in professional service expenses related to being a newly publicly traded company.
Net Loss: Net loss was $5.3 million for the third quarter of 2023, as compared to net income of $4.9 million for the third quarter of 2022. In the third quarter 2022, we recognized $11.0 million revenue associated with a license fee resulting from our 2021 agreement with Newsoara BioPharma Co., Ltd.
About Genelux Corporation
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Ankit Bhargava, MD
Source: Genelux Corporation