GPC's 3rd qtr loss up 7% on satraplatin costs

Germany's GPC Biotech reported a third quarter loss of 19.9 million euros ($29.0 million), an increase of 7% on the deficit it posted for the equivalent period last year. Analysts polled by Thomson Financial had forecast an average loss of 16.6 million euros. Quarterly revenue grew 35% to 8.9 million euros, but was outstripped by general and administrative expenses that were 125% higher at 13.8 million euros.

In addition, higher costs associated with trials of the cancer drug satraplatin, the development of which is now in question following disappointing data from the SPARC study (Marketletter November 5), coupled with expenses arising from the successful defense of a suit brought by the USA's Spectrum Pharmaceuticals, added to its shortfall for the quarter. The period also saw the filing of a class action law suit, alleging that GPC has violated federal securities laws by misrepresenting satraplatin's approval prospects.

As a result of these difficulties, GPC has undertaken a program of cost-cutting and restructuring operations, including a 15% reduction in staffing levels (Marketletter September 3). The firm said that this process would continue, adding that it would announce another round of further "significant" job cuts, in the next few weeks.