SOURCE: ZymeTx, Inc.
ZymeTx, Inc. Assesses Influenza Season and ZStatFlu Product Launch
OKLAHOMA CITY, Feb. 5 /PRNewswire/ -- Citing a later than anticipated influenza season, ZymeTx, Inc. (Nasdaq: ZMTX - news) said today that it expects revenues to be concentrated in the third and fourth quarters of the fiscal year ending June 30, 1998.
According to Peter Livingston, President and CEO, ''The nation's flu season didn't reach significance until the second week in January, which is about a month later than usual. This delay will push most of our initial sales into the third quarter.''
Mr. Livingston indicated that the late beginning of the influenza season does not necessarily mean that there will be a shorter season, and that many health officials have predicted that the influenza season may extend beyond normal, possibly into April.
Mr. Livingston also addressed the reaction of physician customers to the initial sales activity. ''Our initial marketing efforts have established that because the test is a new paradigm for the detection and treatment of upper respiratory illness, the adoption rate among physicians has been slower than expected. This is in large measure due to the multi-step education process needed to demonstrate the effectiveness and cost-benefits of the test. To accelerate the adoption rate, additional measures including broadened sample programs, specific geographic blitz marketing and general media programs have been implemented to establish patient awareness. So far, where the product has been adopted, physicians are pleased with the results that lead to improvement in the quality of patient care and economics of their practice.''
Analysts have estimated that ZymeTx could sell as many as one million units of ZStatFlu in fiscal 1998. ''Our ability to reach this level of sales will depend on the influenza season not being shorter than normal, as well as improving the ZStatFlu adoption rate. If the flu season is short and the more aggressive marketing programs do not improve the adoption rate, then our sales would be negatively impacted.''
ZStatFlu(TM) is the only point-of-care (POC) test that enables medical professionals to quickly diagnose both Influenza A and B. ZymeTx received FDA (Federal Drug Administration) clearance for ZStatFlu in September 1997 and began to ship kits to physicians and clinics in December 1997.
Note: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements regarding the company's results and trends in its business. These statements are based largely on management's expectations. The achievement of these results is subject to a number of risks and uncertainties beyond the company's control that may cause actual results to differ significantly. We refer to the company's filings with the Securities and Exchange Commission, which include a more detailed description of these factors.
ZymeTx, Inc. is a biotechnology company growing out of the research support of the Oklahoma Medical Research Foundation. The company, based in Oklahoma City, is engaged in the development of unique diagnostic and therapeutic products for the intervention and detection of viral diseases. The company's common shares are traded on the Nasdaq Stock Market under the symbol ZMTX. |
