Genaissance Pharmaceuticals Updates Guidance for 2004 Revenue
Thursday October 21, 7:06 am ET
Genaissance Pharmaceuticals, Inc. (Nasdaq: GNSC - News) today announced that it has revised its revenue guidance for the year ending December 31, 2004. The Company expects full year revenue to be in the range of $20 to $21 million, including the Company's acquisition of Lark Technologies, Inc. as of April 1, 2004, a decrease from its previously stated guidance of $25 million. On a pro-forma basis, which includes Lark since the beginning of the year, the updated revenue guidance is $22 to $23 million, whereas the previous guidance was $27 million. The revision in revenue guidance is a result primarily of a shift in the timing of certain anticipated contracts and the receipt of samples associated with some of these contracts. Genaissance expects that its recurring operating expenses for the second half of the year will be similar to those of the first half of the year, taking into account the acquisition of Lark as of April 1, 2004, and other non-recurring charges. Genaissance will announce its third quarter and nine month results for 2004 on November 9, 2004.
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"We are disappointed that we had to revise our revenue guidance," said Kevin Rakin, President and Chief Executive Officer of Genaissance Pharmaceuticals. "Our business is partly influenced by our customers' drug development timelines that can cause a delay in the timing of revenues. We continue to enter new markets to augment our base revenues, evidenced by the in roads we have made in the Ag genotyping sector and demonstrated by today's announcement regarding our collaboration with Pyxis Genomics in the area of SNP genotyping for porcine traceability. Overall, we believe we can grow our revenue in 2005 in excess of 20% over 2004."
The Company is proposing to issue securities in a private placement for the purpose of financing the development of vilazodone, a selective serotonin reuptake inhibitor and a 5HT1A partial agonist, which the Company licensed from Merck KGaA in September 2004. The securities to be offered and sold will not be or have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. |
