Oct. 23 /PRNewswire/ -- Aurora Biosciences Corporation (Nasdaq: ABSC - news) today announced financial results for the third quarter ended September 30, 2000. Net income for the third quarter 2000 was $1.4 million, or $0.06 per share on a diluted basis, compared to a net loss of $1.7 million, or $0.10 per share, for the third quarter 1999. Revenue increased 54% to $16.8 million for the third quarter 2000 compared to $10.9 million for the third quarter 1999.
For the nine-month period ended September 30, 2000, net income was $5.7 million, or $0.26 per share on a diluted basis, compared to a net loss of $6.5 million, or $0.39 per share, for the same period in 1999. Revenue increased 55% to $47.1 million for the nine-month period compared to $30.4 million for the same period in 1999.
``This has been another strong quarter for Aurora Biosciences,'' commented Stuart J.M. Collinson, Ph.D., Aurora's chairman, chief executive officer and president. ``We continue to build discovery collaborations and license agreements with leading pharmaceutical, biotech, and voluntary health organizations. We have demonstrated our ability to take our technologies further downstream through our therapeutic agreements in spinal muscular atrophy (Q1), cystic fibrosis (Q2) and Huntington's Disease (Q3). We have also demonstrated our ability to commercialize our technology outside human healthcare as exemplified by our first agreement in agricultural genomics. Additionally, we have completed and installed Module 3 on the Ultra High-Throughput Screening System (UHTSS(TM)) located at Aurora's San Diego facility. These achievements reflect the efforts of our outstanding people, their dedication to our customers, and the goals of our business.''
The revenue growth in the third quarter resulted from the delivery and validation of Module 2 of Aurora's UHTSS(TM) platform to Merck, ion channel discovery agreements with Johnson & Johnson and Organon, and our continuing collaborations with Pfizer and the Cystic Fibrosis Foundation.
Total operating expenses increased 32% over the third quarter of the prior year, in line with the overall growth of the company during the past year. While revenue increased 54% from the third quarter of 1999, cost of revenue increased only 34%. Research and development expenses increased 36% over the same period. Selling, general and administrative expenses increased by 21% over the 1999 third quarter. Net interest and other income increased significantly, primarily due to interest income resulting from a $71 million private placement of common stock in February 2000.
The Company's quarterly and annual financial performance may be subject to fluctuations depending on factors such as revenue recognized from contracts and collaborations, timing of the delivery of technologies and systems, the completion of contracted service commitments to Aurora's customers and potential future acquisitions of complementary assets or technologies. Accordingly, revenue and operating results for prior periods may not be predictive of Aurora's future financial results.
* Discovery Services:
* Voltage Ion Probe Reader (VIPR(TM)) platform
* Aurora's ion channel discovery business continues to grow. In the last
nine months Aurora has entered into new ion channel platform agreements with
GlaxoWellcome, American Home Products, Organon and Johnson & Johnson. Aurora
continues to invest in the development of new technology, such as its novel
biophysical ion channel technology that is being used in the collaboration
with Merck that was announced last month.
Vivid(TM) Compound Profiling Technology
In December of 1999, Aurora applied for a Phase II SBIR grant to develop P450 technology to conduct compound profiling for ADME (Absorption, distribution, metabolism and excretion) applications. In July of 2000, Aurora was awarded a $1 million grant to develop this technology for high-throughput compound profiling. In September, Aurora announced that it had signed the first commercial licensing agreement for Vivid(TM) technology, with Pfizer.
Therapeutic Alliances
Aurora continues to expand its portfolio of target and therapeutic alliances. Aurora has already demonstrated considerable success in capturing therapeutic alliances with spinal muscular atrophy, cystic fibrosis and Huntington's Disease. Aurora recently completed development of the first CFTR ion channel assay in less than four months using our proprietary VIPR(TM) system.
Big Biology(TM)
Big Biology(TM), Aurora's target focused drug discovery initiative, continues to advance. Research and development expenses reflect a significant increase to fund this program. Aurora plans to move further downstream in the discovery process and to enter into therapeutic alliances.
Technology Platform Expansion - Acquisition of Quorum Sciences
On Friday, October 20, Aurora announced the acquisition of Quorum Sciences. This acquisition is strategically important because it establishes drug discovery capabilities in antimicrobials, and builds on our cystic fibrosis program. Quorum Sciences specializes in the discovery and application of bacterial signaling pathways called quorum sensing, for use in the development of novel anti-infective therapeutics. Quorum Sciences has a commercially relevant intellectual property position in the emerging field of biofilms and quorum sensing. This acquisition positions Aurora as a leader in biofilm inhibitors and antimicrobial target identification.
* Discovery Systems Business:
* Ultra High-Throughput Screening System Platform (UHTSS(TM))
* The Company announced that it has installed the first Module 3 operating
system, integrating the UHTSS(TM) platform located at Aurora's San Diego
facility. The Company expects to integrate the first UHTSS(TM) platform for a
collaborator by year-end.
Intellectual Property Portfolio
Our intellectual property portfolio has grown to cover more than 30 patents on Aurora's biology and instrument technologies, and we now have over 120 patent applications pending. Aurora's competitive advantage is our proprietary expertise across broad technologies, which include molecular biology, microfluidics, detection chemistry, software development, robotics and automation.
Financial Expectations for Full-Year 2000
Today, Securities and Exchange Commission Regulation FD (Fair Disclosure) goes into effect. In an attempt to broadly disseminate material information, we will provide forward-looking guidance with respect to our financial expectations. The Company continues to anticipate its full-year 2000 results will be in line with analyst consensus estimates. This consensus projects revenue of at least $62 million and earnings of at least $0.28 per share, including the $0.08 per share gain in the second quarter resulting from the sale of our investment in Cytovia.
Financial Expectations for Full-Year 2001
The Company expects that full-year results for 2001 will be in line with existing analyst consensus estimates as provided by First Call(TM).
Webcast of Conference Call
As previously announced, investors can access a live Webcast of the third quarter earnings conference call through a link that will be posted on Aurora's website at www.aurorabio.com. The conference call begins today at 2:00pm Pacific Time and will be available for replay through November 6, 2000... |
