Genitope Corporation Announces Financial Results for Fourth Quarter and Year Ended...

Genitope Corporation Announces Financial Results for Fourth Quarter and Year Ended December 31, 2007

FREMONT, Calif.--(Business Wire)--
Genitope Corporation (NASDAQ: GTOP) today reported financial
results for the fourth quarter and year ended December 31, 2007.

Financial Results

For the fourth quarter of 2007, we reported total operating
expenses of $15.1 million and a net loss of $16.5 million, or $0.39
per share. This compares to total operating expenses of $13.9 million
and a net loss of $14.3 million, or $0.40 per share, for the fourth
quarter of 2006. For the year ended December 31, 2007, we reported
total operating expenses of $62.3 million and a net loss of $65.6
million, or $1.63 per share. This compares to total operating expenses
of $51.6 million and a net loss of $48.9 million, or $1.39 per share,
for the year ended December 31, 2006.

The increase in operating expenses for the fourth quarter of 2007
and the year ended December 31, 2007 was primarily due to higher
staffing levels and other operating costs incurred to support our
preparations to commercialize MyVax(R) personalized immunotherapy and
the development of our monoclonal antibody program, as well as
recognition of higher depreciation expenses associated with our
manufacturing facility and corporate headquarters. The decrease in net
interest income/expense reported for the fourth quarter of 2007 and
the year ended December 31, 2007 was primarily due to lower interest
income earned and the increase in non-cash interest expense related to
our manufacturing facility and corporate headquarters of $0.1 million
and $3.6 million, respectively.

As of December 31, 2007, we had cash, cash equivalents and
marketable securities of $27.9 million, including $1.0 million that is
restricted as to its use and secures letters of credit that guarantee
rental obligations under the lease for our manufacturing facility and
corporate headquarters. The decrease from the comparable balance at
December 31, 2006 of $61.3 million (including $9.6 million that
secured letters of credit related to the construction build-out costs
of our manufacturing facility and corporate headquarters and was
restricted as to its use) was primarily due to operating expenses and
the capital expenditures required to complete our manufacturing
facility and corporate headquarters. The cash usage was partially
offset by the completion, in May of 2007, of a follow-on underwritten
public offering of 6,010,279 shares of common stock at a price of
$3.85 per share, with net proceeds of approximately $21.6 million, as
well as an offering of 500,000 shares of common stock at a price of
$4.05 per share, with net proceeds of approximately $2.0 million.

We are evaluating our strategic alternatives with respect to all
aspects of our business. We currently have capital resources that we
believe to be sufficient to support our operations through
approximately May 2008. As indicated in our annual report on Form 10-K
for the year ended December 31, 2007 ("2007 Annual Report") filed with
the Securities and Exchange Commission on March 31, 2008, there is
substantial doubt about our ability to continue as a going concern;
however, the financial statements included in our 2007 Annual Report
do not include any adjustments or charges that might be necessary
should we be unable to continue as a going concern. The report of our
independent registered public accounting firm on the financial
statements included in the 2007 Annual Report contains an explanatory
paragraph regarding going-concern uncertainty. For more information,
stockholders are encouraged to review our 2007 Annual Report.

About Genitope Corporation

Genitope Corporation (Fremont, Calif.) is a biotechnology company
focused on the research and development of novel immunotherapies for
the treatment of cancer. Until we recently suspended its development,
our lead product candidate was MyVax(R) personalized immunotherapy, a
patient-specific active immunotherapy based on the unique genetic
makeup of a patient's tumor and is designed to activate the patient's
immune system to identify and attack cancer cells. Genitope is also
developing a monoclonal antibody panel that it believes will
potentially represent a novel, personalized approach for treating NHL.
For more information about Genitope, please log on to
www.genitope.com.

Forward-Looking Statements

This news release contains "forward-looking statements." For this
purpose, any statements contained in this press release that are not
statements of historical fact may be deemed forward-looking
statements, including but not limited to statements about the adequacy
of our existing capital resources to provide us with sufficient
financial resources to support operations through May 2008 and our
ability to continue as a going concern. Actual results or events may
differ materially from those expressed or implied by the
forward-looking statements as a result of a number of factors,
including the risks that we may be unable to successfully pursue any
strategic alternatives or otherwise raise any capital to fund any
program, that any strategic alternative we pursue may result in the
stockholders of Genitope having little or no continuing interest in
Genitope's programs, that we may be unable to settle our lease
obligations and could be required to seek protection under the federal
bankruptcy laws, and other important risk factors described in
Genitope's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended December
31, 2007. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Genitope undertakes no obligation to revise or update
any forward-looking statements to reflect events or circumstances
after the date hereof.

-0-
*T
GENITOPE CORPORATION
(A DEVELOPMENT STAGE ENTERPRISE)
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

Cumulative
Deficit
during
the
Development
Stage Period
August 15,
1996
(date of
Three Months Ended Twelve Months Ended inception)
to December
December 31, December 31, 31,
------------------- -------------------
2007 2006 2007 2006 2007
--------- --------- --------- --------- ------------

Operating
expenses:
Research and
development $ 12,875 $ 11,378 $ 51,165 $ 40,241 $ 192,339
Sales and
marketing 585 586 2,377 2,740 12,544
General and
administrative 1,627 1,971 8,792 8,627 34,941
--------- --------- --------- --------- ------------
Total
operating
expenses 15,087 13,935 62,334 51,608 239,824
--------- --------- --------- --------- ------------

Loss from
operations (15,087) (13,935) (62,334) (51,608) (239,824)

Loss on
extinguishment
of convertible
notes and
cancellation of
Series E
convertible
preferred stock
warrants - - - - (3,509)
Interest expense (1,268) (1,125) (5,158) (1,164) (9,330)
Interest and
other income,
net (121) 760 1,845 3,860 11,298
--------- --------- --------- --------- ------------

Net loss (16,476) (14,300) (65,647) (48,912) (241,365)

Dividend related
to issuance of
convertible
preferred
shares and the
beneficial
conversion
feature of
preferred stock - - - - (18,407)
--------- --------- --------- --------- ------------
Net loss
attributable to
common
stockholders $(16,476) $(14,300) $(65,647) $(48,912) $(259,772)
========= ========= ========= ========= ============

Basic and
diluted net
loss per common
share
attributable to
common
stockholders $ (0.39) $ (0.40) $ (1.63) $ (1.39)
========= ========= ========= =========

Shares used in
computing basic
and diluted net
loss per share
attributable to
common
stockholders 42,708 36,011 40,243 35,081
========= ========= ========= =========
*T

-0-
*T
GENITOPE CORPORATION
(A DEVELOPMENT STAGE ENTERPRISE)
UNAUDITED CONDENSED BALANCE SHEETS
(in thousands, except per share and share data)

December 31, December 31,
2007 2006
------------ ------------

ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 26,933 $ 51,682
Prepaid expenses and other current assets 1,902 3,312
------------ ------------

Total current assets 28,835 54,994

Restricted cash and marketable securities 1,000 9,579
Property and equipment, net 89,012 93,479
Other assets 1,761 2,371
------------ ------------

Total assets $ 120,608 $ 160,423
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,096 $ 5,551
Accrued and other current liabilities 3,822 4,814
Current portion of lease financing
liability 190 -
Current portion of credit line 2,009 1,662
------------ ------------

Total current liabilities 8,117 12,027

Lease financing liability and accrued
interest 44,360 41,941
Noncurrent portion of credit line 2,016 3,609
------------ ------------

Total liabilities 54,493 57,577
------------ ------------

Stockholders' equity
Common stock, $0.001 par value, 65,000,000
shares authorized; Issued and
outstanding: 42,760,154 shares at
December 31, 2007 and 36,052,685 shares
at December 31, 2006 43 36
Additional paid-in capital 325,844 296,962
Deferred stock compensation - (19)
Accumulated other comprehensive loss - (8)
Deficit accumulated during development
stage (259,772) (194,125)
------------ ------------

Total stockholders' equity 66,115 102,846
------------ ------------

Total liabilities and stockholders' equity $ 120,608 $ 160,423
============ ============
*T

Investor Relations:
Genitope Corporation
John Vuko, Chief Financial Officer, 510-284-3000
ir@genitope.com
or
Media:
Edelman
Marites Cristobal, 323-202-1424
marites.cristobal@edelman.com

Copyright Business Wire 2008