1028358--3/31/2008--GENITOPE

related topics

{product, candidate, development}

{property, intellectual, protect}

{cost, regulation, environmental}

{interest, director, officer}

{stock, price, share}

{investment, property, distribution}

{control, financial, internal}

{capital, credit, financial}

{stock, price, operating}

We have been substantially dependent on the success of our one product candidate, MyVax, and we recently suspended the development of MyVax. We are unlikely to be able to raise sufficient funds to continue our current operations, and there is substantial doubt about our ability to continue as a going concern. We may need to seek to protection under the provisions of the U.S. Bankruptcy Code, and in that event, it is unlikely that stockholders would receive any value for their shares. If we are unable to reach an acceptable settlement with the landlord of our leased facilities, or obtain financing to support continued satisfaction of our lease obligations, we would likely default under the lease agreements and would likely be forced to seek protection under the federal bankruptcy laws. Raising additional funds by issuing securities or through collaboration and licensing arrangements would cause dilution to existing stockholders or require us to relinquish rights to our technologies, MyVax or our monoclonal antibody program. Our efforts to discover, develop and commercialize our monoclonal antibody panel are at an early stage of testing and are subject to a high risk of failure, and, depending on the strategic alternative that we pursue, if any, stockholders of Genitope may ultimately have little or no continuing interest in the monoclonal antibody program. We have incurred significant operating losses since inception and, if our operations continue, we anticipate that we would continue to incur substantial losses and negative cash flow from operations for the foreseeable future. As a result of our planned reductions in force, we will be operating with a severe shortage of personnel and may not be able to conduct even limited operations. If we fail to retain key scientific personnel, we may be unable to successfully develop our monoclonal antibody panel or any other product candidates. If we are unable to maintain our Nasdaq Global Market listing, the liquidity of our common stock would be seriously limited. Because it is difficult and costly to protect our proprietary rights, we may not be able to ensure their protection. If we are sued for infringing intellectual property rights of third parties, it will be costly and time consuming, and an unfavorable outcome in that litigation would have a material adverse effect on our business. If our competitors are better able to develop and market products that are more effective than the immunotherapies that we may develop, our commercial opportunity will be reduced or eliminated. We are subject to extensive regulation, which can be costly and time consuming and could subject us to unanticipated delays or prevent us from obtaining regulatory approvals for any product candidates that we may develop. We may incur significant costs complying with environmental laws and regulations. If we use biological and hazardous materials in a manner that causes injury or violates laws, we may be liable for damages. Our stock price has been and may continue to be very volatile, and your investment in our stock could decline in value.

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1028358--3/31/2008--GENITOPE_CORP