Commonwealth Biotechnologies, Inc. Announces New Contract Signings
Wednesday April 20, 10:30 am ET
Work to Begin in the Second and Third Quarters of 2005
RICHMOND, Va.--(BUSINESS WIRE)--April 20, 2005--Commonwealth Biotechnologies, Inc. (NASDAQ: CBTE - News), today reported receipt of several new contract awards totaling about $3.0 million. These new contracts are in addition to those already previously announced and bring new signings in 2005 to over $ 5.7 million. The majority of the revenue from these contracts will be recognized in 2005 and 2006.
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The largest of the new contracts, valued at about $1 million, calls for CBI to assess the in vivo efficacy of a particular recombinant protein which is about to enter the human clinical trial phase. CBI will first develop and qualify assays to measure the efficacy of the proposed human pharmaceutical and then will apply the assays it develops to clinical trial samples provided by the contract sponsor. Some of the major goals of the other new contract programs include determination of protein stability, developing antibodies and novel immuno-assays, and qualifying particular molecular genetic assays for use in clinical trial work. About $ 500,000 of the $ 3 million in new contract funds represents an addition to a contract announced in March, under which CBI will produce large amounts of proteins and antibodies related to vaccines directed against certain select agent pathogens.
Work on many of the new contracts has already begun, but the start date for the major new award being announced today is anticipated to be the third quarter of this year. The basic science for this contract will take a full year to complete and analysis of the clinical trial samples is expected to take place beginning in the fourth quarter of 2006.
"CBI is pleased to announce these new contract programs," said Dr. Robert B. Harris, President and CEO, CBI and Program Manager for the major new contract award. "The new programs will require input from all our platform technologies, and will utilize expertise resident throughout the company. The new work load will require hiring new scientists, which gives us the opportunity to expand our work force using contract monies paid by our clients. As we continue to build our contract base with new long-term high value programs, we are better able to withstand normal contract delays which sometimes affect our anticipated revenue stream |
