ViroLogic Announces 2000 Second Quarter Financial Results; Revenues Double Over
First Quarter 2000
SOUTH SAN FRANCISCO, Calif., Jul 26, 2000 (BUSINESS WIRE) -- ViroLogic, Inc.
(NASDAQ:VLGC) today reported results for its second quarter ended June 30, 2000.
Commercial sales to physicians, as well as to pharmaceutical companies, of
ViroLogic's flagship product, PhenoSense(TM) HIV, have significantly increased
since its commercial launch in November 1999. ViroLogic reported sales of $1.9
million for the second quarter, compared to $0.2 million for the same period in
1999 and $0.9 million in the first quarter of 2000. During the second quarter of
2000, sales to physicians were $1.2 million and sales to pharmaceutical
companies for use in clinical trials were $0.7 million. Sales for the first six
months of 2000 were $2.8 million compared to sales of $0.3 million for the
corresponding period in 1999. For the six months ended June 30, 2000, sales to
physicians were $1.9 million and sales to pharmaceutical companies were $0.9
million.
"The significant increase in sales of our PhenoSense(TM) HIV test during the
second quarter reflects the increasing need and acceptance of our product by
physicians and patients," said Bill Young, Chairman and CEO of ViroLogic.
"PhenoSense(TM) HIV improves the way HIV is managed -- enabling physicians to
optimize and individualize therapy by selecting the drugs that remain active
against the virus from each HIV patient. We expect to report continued increases
in sales of PhenoSense(TM) HIV during the year ahead as awareness of the test's
availability and benefits expands."
Net loss for the quarter was $5.0 million, or $0.28 per share, compared to a net
loss of $3.6 million, or $0.51 per share, as-converted, for the same period in
1999. Net loss for the first six months, excluding a one-time deemed dividend
described below, was $10.5 million, or $0.68 per share, compared to a net loss
of $6.1 million, or $0.84 per share, as-converted, for the same period in 1999.
The increase in net loss resulted from increased expenses related to the
commercialization of PhenoSense(TM) HIV and research and development expenses.
ViroLogic Highlights for the Second Quarter of 2000:
-- Raised $35 million in cash through the initial public
offering;
-- Increased sales of PhenoSense(TM)HIV by over 100% compared to
first quarter 2000;
-- International AIDS Society issued guidelines recommending the
use of HIV drug resistance testing in the routine management
of HIV patients;
-- ViroLogic research featured in 26 presentations at the 4th
International Workshop on HIV Drug Resistance in Sitges,
Spain, including new studies on:
-- the discordance between genotype-based predictions of drug
susceptibility and actual phenotype, highlighting the
advantages of direct phenotypic testing;
-- the unique ability of PhenoSense(TM)HIV to detect viruses
that are "hypersusceptible" to AIDS drugs;
-- the capacity of PhenoSense(TM) HIV to measure resistance
to novel drugs in development, including integrase
inhibitors, a new class of AIDS drugs.
Operating costs and expenses for the three months ended June 30, 2000 were $7.4
million, an increase from the same period in 1999 of $3.8 million. The increase
in expenses was due to commercialization of PhenoSense(TM) HIV and increased
research and development expenses. Second quarter operating expenses also
included a $1.2 million non-cash charge related to amortization of deferred
compensation associated with options granted to employees and non-employees.
Operating expenses for the six-months ended June 30, 2000 were $13.8 million,
compared to $6.3 million for the same period in 1999. Year-to-date operating
expenses also included a non-cash charge of $2.1 million, related to
amortization of deferred compensation associated with options granted to
employees and non-employees.
In the first quarter of 2000, the Company recorded a deemed dividend to
preferred stockholders of $15.7 million, which resulted from the sale of Series
C preferred stock in January and February of 2000 at a price per share below the
deemed fair value of the Company's stock at the time of sale of the preferred
stock. Net loss allocable to common stockholders for the first six months of
2000 was $26.2 million or $1.70 per share.
On May 1, the Company completed its initial public offering of 5 million shares
at $7.00 per share. Total gross proceeds to the Company were approximately $35
million.
At June 30, 2000, ViroLogic had $40.1 million in cash, cash equivalents and
short-term investments, and $39.4 million in working capital, which includes
restricted cash of $2.3 million.
About ViroLogic
ViroLogic is a biotechnology company developing and marketing innovative
products to guide and improve treatment of viral diseases. The Company's
proprietary technology, called PhenoSense(TM), tests for drug resistance and
susceptibility in viruses that cause serious diseases such as AIDS, hepatitis B
and hepatitis C.
ViroLogic's first product, PhenoSense(TM) HIV, is a test that directly and
quantitatively measures resistance of a patient's HIV to antiviral drugs. The
test results provide physicians with key information to select appropriate drugs
for their HIV patients. The Company is also developing PhenoSense(TM) products
for other viral diseases and intends to use the results of its PhenoSense(TM)
tests and other clinical data to develop its Therapy Guidance System(TM)
(TGS(TM)), an interactive database to help physicians guide patient therapy.
Certain statements in this press release are forward-looking. These
forward-looking statements are subject to risks and uncertainties and other
factors, which may cause actual results to differ materially from the
anticipated results or other expectations expressed in such forward-looking
statements. These risks and uncertainties include, but are not limited to,
whether PhenoSense(TM) testing will achieve market acceptance, whether payers
will authorize reimbursement for our products, whether we will are able to
expand our sales and marketing capabilities, whether we encounter problems or
delays in automating our process, whether we successfully introduce new products
using our PhenoSense(TM) technology, whether intellectual property underlying
our PhenoSense(TM) technology is adequate, whether we are able to build brand
loyalty, and other risks and uncertainties detailed in our final Prospectus that
is part of our Registration Statement on Form S-1, as declared effective by the
SEC on May 1, 2000 (File No. 333-30896).
VIROLOGIC, INC.
SELECTED FINANCIAL DATA
Three months ended
June 30,
2000 1999
---- ----
(unaudited)
Statement of Operations Data:
Revenue $1,947 $ 166
------- -------
Operating costs and expenses:
Cost of revenue 1,448 65
Research and development 2,385 2,418
General and administrative:
Non-cash stock-based compensation expense 1,151 --
Other general and administrative expenses 1,338 1,072
Sales and marketing 1,085 238
------- -------
Total costs and operating expenses 7,407 3,793
------- -------
Loss from operations (5,460) (3,627)
Interest income 515 53
Interest expense (72) (64)
------- -------
Net loss (5,017) (3,638)
Deemed dividend to preferred stockholders -- --
------- -------
Net loss allocable to common stockholders $(5,017) $(3,638)
==== ====
Basic and diluted amounts per common share (1):
Net loss $(0.28) $(0.51)
Deemed dividend to preferred stockholders -- --
------- -------
Net loss allocable to common stockholders $(0.28) $(0.51)
==== ====
Weighted average shares used in computing basic
and diluted net loss per share 17,987 7,179
June 30,
2000
----
(unaudited)
-----------
Balance Sheet Data
Cash, cash equivalents and short-term investments $37,745
Restricted cash 2,312
Working capital 39,373
Total assets 49,281
Long term obligations, less current portion 1,410
Total stockholders' equity $43,351
Six months ended
June 30,
2000 1999
---- ----
(unaudited)
Statement of Operations Data:
Revenue $ 2,824 $ 251
-------- -------
Operating costs and expenses:
Cost of revenue 2,131 145
Research and development 4,661 4,013
General and administrative:
Non-cash stock-based compensation expense 2,145 --
Other general and administrative expenses 2,981 1,800
Sales and marketing 1,888 366
-------- -------
Total costs and operating expenses 13,806 6,324
-------- -------
Loss from operations (10,982) (6,073)
Interest income 630 155
Interest expense (129) (132)
-------- -------
Net loss (10,481) (6,050)
Deemed dividend to preferred stockholders (15,700) --
-------- -------
Net loss allocable to common stockholders $(26,181) $(6,050)
===== ====
Basic and diluted amounts per common share (1):
Net loss $(0.68) $(0.84)
Deemed dividend to preferred stockholders (1.02) --
-------- -------
Net loss allocable to common stockholders $(1.70) $(0.84)
===== ====
Weighted average shares used in computing basic
and diluted net loss per share 15,449 7,188
December 31,
1999(2)
-------
Balance Sheet Data
Cash, cash equivalents and short-term investments $2,208
Restricted cash 950
Working capital 522
Total assets 9,777
Long term obligations, less current portion 1,051
Total stockholders' equity $4,698
(1) 1999 weighted average shares used in computing basic and diluted net loss
per share includes shares issuable upon the conversion of outstanding shares of
convertible preferred stock from the original date of issuance.
(2) The balance sheet data is derived from audited financial statements for the
year ended December 31, 1999 included in the Company's Registration Statement on
Form S-1 (No. 333-30896) filed as effective on May 1, 2000. |
