LION bioscience Announces Nearly Triple First Quarter Sales
It has come to LION's attention that the second paragraph of LION's press release of August 8, 2001 contained typographical errors. The full text of the corrected August 8, 2001 press release is set out below.
Positive Developments Bring About a Successful Start to the Company's Fiscal Year
HEIDELBERG, Germany, Aug. 9 /PRNewswire/ -- LION bioscience AG (WKN: 504 350; Neuer Markt: LIO; Nasdaq: LEON) increased its sales in the first three months (April 1 to June 30, 2001) of the current fiscal year (which ends March 31, 2002) to euro 8.9 million -- up from euro 3.3 million in the same quarter of the previous fiscal year. This amounts to an increase of 172 per cent, or euro 5.6 million, (compared to the same period of the previous year). This increase is primarily due to positive developments in LION's R&D and licensing activities. Sales from research & development grew by 105 per cent, from euro 2.7 million to euro 5.5 million. Revenue from licences increased five-fold, to just under euro 3.5 million, compared to euro 0.6 million in the same quarter of the last fiscal year. This development is also a result of a marked expansion of LION's global customer base, particularly in the important Japanese market.
Integration of Trega Biosciences
LION's earnings per share improved considerably during the quarter, from euro -1.84 to euro -0.60. Despite increased expenditures of euro 13.3 million for marketing, administration, and research and development, LION managed to lower its operating loss from euro 14.1 million to euro 13.1 million. Without taking into account the expenses realized through the conversion of preferred shares into common shares of euro 8.7 million -- which were incurred in the first quarter of the previous fiscal year -- LION's operating loss increased by some euro 7.8 million, from euro 5.3 million to euro 13.1 million. This increased loss is due, among other things, to the first-time consolidation of Trega Biosciences, Inc., LION's new subsidiary in San Diego, and associated costs. Despite the deficit, LION's EBIT margin improved by 10 per cent.
LION has restructured its newly-acquired San Diego subsidiary as a center for excellence in chemistry that will enable LION to better meet the needs on the market for integrated solutions covering biology, chemistry and pre-clinical research.
LION's goal for the current fiscal year, assuming that business will continue to develop positively, is to double its revenue.
Positive developments in the acquisition of new clients and in customer loyalty
LION continues to deliver upon its existing agreements and to solidify new partnerships with key industry leaders. For example, due to the tremendous efficiency of LION's IT solutions, in April of this year, after a period of only 22 months -- which represents about half of the period originally agreed upon -- 250 drug targets were identified for Bayer AG. In May, LION entered into an agreement with Affymetrix, the world's leading biochip manufacturer, for the use of LION's SRS integration system in the development of an Internet portal for Affymetrix customers. This agreement follows the recent utilization of the SRS data integration system for Celera's portal for human genome data, and further validates the system's unique capabilities. The increasing and wide-spread demand for SRS continues to establish the system as a standard for integration solutions in the life science industry.
Product portfolio expanded to include two new products
LION has expanded its range of solutions for the IT sector in the first quarter of the business year. Its product portfolio now includes two important modules piSCOUT(TM) and pathSCOUT(TM), which significantly improve the holistic analysis of biological processes. The first three pathSCOUT(TM) systems are already in use at Paradigm Genetics, Nestle and the Japanese Cancer Research Centre.
Lock-up agreement for original shareholders
The original 12-month share lock-up agreements with LION's principal shareholders will expire on August 10, 2001. LION's Chief Executive Officer, Dr. Friedrich von Bohlen, has agreed to voluntarily extend his lock-up period to August 10, 2002.
About LION bioscience AG:
LION bioscience (http://www.lionbioscience.com) provides proven information and knowledge management solutions to significantly improve life science R&D performance and productivity. These solutions integrate all R&D disciplines, spanning from genetics to early and late discovery through clinical trials. LION applies these solutions for its internal drug discovery program in the field of nuclear receptors with the goal to out-license specific databases, polymorphism marker panels, and validated targets and leads.
Founded in 1997, LION, together with its consolidated subsidiaries, has more than 465 employees, with headquarters in Heidelberg, Germany, and subsidiaries in Cambridge, UK, Cambridge, MA, USA and San Diego, CA, USA. To date, LION has established partnerships with leading life science companies, including Aventis, Bayer, Boehringer Ingelheim, Celera, DuPont, GlaxoSmithKline, GMD, Janssen, Merck Inc., Nestle, Novartis, Paradigm Genetics, Pharmacia & Upjohn, Roche, Sumitomo Pharmaceuticals and Tripos.
All statements in this press release that are not historical are forward-looking statements within the meaning of the U.S. securities laws. Such statements are based on current expectations that are subject to risks and uncertainties. Actual results may vary materially from those projected because of factors such as uncertainties relating to technologies, product development, or manufacturing, market acceptance, cost or pricing of LION's products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, or patent protection and litigation. These and other risk factors are discussed in LION's Registration Statement on Form F-4 declared effective by the SEC on February 9, 2001. LION expressly disclaims any obligation or undertaking to release publicly any updates, revisions or corrections to any forward-looking statements or historical information contained herein.
LION bioscience(R) and i-biology(R) are either registered trademarks of LION bioscience AG in the United States and/or other countries, or LION bioscience AG has pending applications for these trademarks in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademark of the respective owners. Trega Biosciences, Inc. has a pending trademark application for iDEA(TM) in the United States. Trega(R) is a registered trademark of Trega Biosciences, Inc.
LION bioscience
Klaus Sprockamp
Chief Financial Officer
49-6221-4038-192
mailto:sprockamp@lionbioscience.com
LION bioscience NoonanRusso Communications
Dr. Andrea Kreisselmeier Lydia Sanmarti
Director Corporate Marketing +1-212-696-4455 ext. 226
Communications l.sanmarti@noonanrusso.com
49-6221-4038-265
andrea.kreisselmeier@lionbioscience.com
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SOURCE LION bioscience
CO: LION bioscience
ST: Germany
IN: BIO HEA MTC
SU: ERN
08/09/2001 20:47 EDT prnewswire.com |
