>>Ciphergen Reports Fourth Quarter and Year-End 2006 Financial Results and Provides Milestones For 2007
Friday February 23, 8:00 am ET
- Conference Call Today at 9 a.m. Eastern -
FREMONT, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Ciphergen Biosystems, Inc. (Nasdaq: CIPH - News) today announced financial results for its fourth quarter and year ended December 31, 2006.
"In 2006, we successfully restructured and repositioned Ciphergen. With the completion of the sale of our research life sciences business, we are focused on leveraging our investment in proteomics and biomarkers to build a leading diagnostics company," said Gail S. Page President and Chief Executive Officer of Ciphergen. "We have three tests in validation and clinical studies, an excellent strategic partner in Quest Diagnostics Inc. that provides both financial and market resources, and a robust pipeline of potential novel diagnostics."
"We enter 2007 well positioned to execute this strategy. Since the close of the Bio-Rad transaction, we have made significant progress in a number of areas. We have restructured our balance sheet, advanced our ovarian triage test into a prospective clinical trial for FDA submission, and moved two other diagnostic programs forward into development. Quest Diagnostics, our strategic partner for our ovarian diagnostic, also has accepted the peripheral arterial disease program as the second of three tests they have access to under our agreement," continued Page.
Fourth Quarter and Year-end 2006 Financial Results
On November 13, 2006, Ciphergen sold its life science research business to Bio-Rad Laboratories. Accordingly, the only revenue in the fourth quarter of 2006 was derived from sales of instruments and tools during the first 6 weeks of the quarter before the sale of the life science business was complete. The Company reported net revenue of $1.2 million in the fourth quarter of 2006, compared to $6.6 million in the fourth quarter of 2005.
Total operating expenses for the fourth quarter of 2006 were $7.7 million compared to $12.9 million in the same period last year. Included in total operating expenses for the fourth quarter of 2005 was a $2.5 million goodwill impairment charge. The loss from continuing operations for the fourth quarter of 2006 was $0.1 million, compared to $9.9 million in the fourth quarter of 2005. Included in the loss from continuing operations for the fourth quarter of 2006 was a $6.9 million net gain on the sale of the life science research business to Bio-Rad. The net loss for the fourth quarter of 2006 was $1.9 million which included a $1.5 million loss on extinguishment of debt compared to $9.2 million for the same period in 2005. Basic and diluted net loss for the fourth quarter of 2006 was $0.05 per share compared to a basic and diluted net loss per share of $0.26 per share for the same period in 2005. The Company has 39.2 million shares outstanding as of December 31, 2006.
Revenue for the full-year of 2006 was $18.2 million compared to $27.2 million for 2005. For the full-year of 2006, the net loss was $22.1 million or $0.61 per share, compared to $35.4 million or $1.10 per share in the same period in 2005.
At December 31, 2006, the Company's cash and investments were $17.7 million, compared to $15.0 million at September 30, 2006 and $28.0 million at December 31, 2005. In addition, Ciphergen has $3.0 million remaining to draw from a loan facility from Quest Diagnostics, which indebtedness is forgivable upon accomplishment of certain milestones.
Recent Accomplishments
* Corporate Transformation
- Completed the sale of the life science research business to Bio-Rad
Laboratories. Ciphergen received $19 million from Bio-Rad, including
a $3 million equity investment in Ciphergen. An additional $2.0
million is receivable upon the successful resolution of a patent
matter and a final $2.0 million is in escrow and subject to potential
claims.
- Completed the exchange of its outstanding 4.50% Convertible Senior
Notes due 2008 (Outstanding Notes). $27.5 million aggregate principal
amount of Outstanding Notes were exchanged for $16.5 million of a new
series of 7.00% Convertible Senior Notes due 2011 and $11.0 million of
cash.
* Ovarian Cancer Diagnostic Progress
- Initiated a prospective clinical trial to evaluate its ovarian cancer
triage test to differentiate women with ovarian cancer from women with
benign pelvic masses.
- Selected PrecisionMed, Inc., a contract research organization with
expertise in the collection and management of human biological
samples. PrecisionMed is supporting Ciphergen in its clinical trial
for its ovarian tumor triage test.
- Engaged Emergo Group, Inc. to help gain regulatory clearance of
Ciphergen's ovarian test in various European countries.
- Teamed with Mosaic Health Care Consultants to develop and implement
reimbursement strategies and programs.
* Other Diagnostic Programs
- Quest Diagnostics accepted the second of its three tests from
Ciphergen pursuant to the parties' existing strategic alliance
agreement. In addition to the ovarian tumor triage test, Quest
Diagnostics will assist Ciphergen in the development and
commercialization of a blood-based assay for the detection of
peripheral arterial disease (PAD).
- Formed collaboration with Ohio State University Research Foundation to
develop and clinically validate a diagnostic test to detect thrombotic
thrombocytopenic purpura (TTP), a hematologic disease, which causes
abnormal clotting and a decrease in platelets.
2007 Milestones
Over the next twelve months Ciphergen anticipates accomplishing the following milestones:
* Complete the prospective clinical trial of its ovarian tumor triage test
and submit the results to the U.S. Food and Drug Administration for
clearance as the first test for use as an adjunct to other diagnostic
methods to help physicians in the differential diagnosis of a persistent
pelvic mass;
* Continue to move the program in PAD forward through clinical validation
studies; and,
* Prepare for market launch of the TTP assay.
Going forward the Company does not anticipate having revenue until its diagnostic tests are commercialized. Operating expenses are expected to be substantially reduced in 2007 given the reduction of employees to approximately 40 persons. Ciphergen estimates that cash used for operations in the first quarter of 2007 will be approximately $5.0 million. The Company expects operating expenses to continue to decrease.
Conference Call
A conference call and webcast will be held on today at 9:00 a.m. Eastern to discuss these results and provide an update on business developments. To access the live conference call via phone, dial (877) 325-7371 from the United States and Canada or (706) 634-0768 internationally. The conference ID is 21329140. Please dial-in approximately ten minutes prior to the start of the call. Additionally, you may access the live and subsequently archived webcast of the conference call from the Investor Relations section of the Company's website at ciphergen.com. Please connect to the web site at least 15 minutes prior to the call to allow for any software download that may be necessary.
A telephone replay will be available beginning approximately one hour after the call through February 27 and may be accessed by dialing (800) 633-8284 from the United States and Canada or (+1 402) 977-9140 internationally. The replay passcode is 21329140. An archived replay of the call will be available until the next quarterly call.<<
snip
So maybe a year of cash left. The possibility of a financing gets nearer. Clearly, the FDA shut them down on the ASP approach. They were going to do the ovarian trial, anyhow, but had previously indicated they hoped to market the test as an ASP by this time to start the actual revenue. Sigh.
Cheers, Tuck |
