ROCKVILLE, Md.--(BW HealthWire)--April 26, 2000--Celera
Genomics Group (NYSE: CRA), a PE Corporation business, today
reported results for its third fiscal quarter ended March 31, 2000. The
Group reported revenues of $11.1 million for the third quarter,
compared with $1.8 million in the same period last year. The net loss
after benefit for taxes was $24.1 million, or $.45 per share, compared
with a net loss of $12.8 million, or $.25 per share in last year's third
quarter. The increase in revenues resulted principally from recent
subscription and related service agreements. Celera significantly
increased its investment in research and development activities, as the
Group continued to expand its medical and annotation research teams
and its bioinformatics staff. R&D expenditures increased to $43.5
million, up from $13.3 million in last year's third quarter.
"Celera has recently demonstrated important achievements," said
Tony L. White, PE Corporation's chairman, president and chief
executive officer. "Our research investments are beginning to drive
growth in our information base. Our integrated research and discovery
platform continues to expand. In addition, we have now extended our
systems to provide web-based access to academic and biotech
customers. We continue to work hard to assemble the competitive
capabilities necessary to lead this market."
"Our business continues to focus on building the world's first
comprehensive biological reference library, software tools to
understand the logic of biology, and a research team to commercialize
that knowledge as quickly as possible," noted J. Craig Venter, Ph.D.,
Celera's president and chief scientific officer. "Celera is committed to
developing integrated systems that allow our customers to understand
the fundamental causes of disease, the biological and environmental
factors that affect the formation and development of disease; and,
ultimately, enable patients to receive personalized diagnosis and
therapy."
Celera has recently achieved several milestones in the development of
its business. These achievements include:
-- New partner relationships
-- Celera entered into an agreement with Takeda Chemical
Industries, Ltd., the largest pharmaceutical company in Japan,
which provides for a five-year comprehensive subscription to
five of Celera's current databases. The agreement also
includes access to Celera's advanced bioinformatics tools and
browsers.
-- Celera entered into a collaboration with the City of Hope, a
premier medical research institution, to investigate
associations of genetic polymorphisms with breast cancer. The
collaboration combines City of Hope's pioneering clinical
genetics approach with Celera's genomic and polymorphism
information databases. Together, the organizations intend to
accelerate the discovery of disease-associated polymorphisms.
-- This week Celera signed a research services agreement that
allows ViaLactia Biosciences New Zealand Ltd. to search for
genetic traits that could improve the quality of dairy
products.
-- Expanded business opportunities
-- In January, Celera acquired a 47.5 percent equity interest in
Shanghai GeneCore BioTechnologies Co., Ltd. This company has
several research collaborations with Chinese government
agencies and research institutes. This acquisition expands the
Group's business globally and provides Celera with access to
new sources of genetic information.
-- In March, the Group signed a definitive agreement to acquire
Paracel, Inc., a leading producer of advanced genomic and text
analysis technologies, subject to customary closing conditions
and regulatory approvals. Celera intends to use this expertise
to provide value-added analytical and data mining tools needed
by its customers, as well as for its internal gene discovery
and annotation work.
-- In late March, the Group introduced web-based access to its
genomic databases and discovery systems. This unique system is
expected to provide Celera with the capability to transition
to phase two of its business development strategy: expansion
of the customer base to small biotechnology companies and
non-profit academic research institutions.
-- Genomic information achievements
-- The Group announced that its scientists, in collaboration with
researchers at the Berkeley Drosophila Genome Project, had
published the assembled and annotated genome of the fruit fly,
Drosophila melanogaster. This genome is considered a model
organism in biological research, because it shares similar DNA
sequences and other characteristics with humans. This is the
most complex genome ever sequenced and assembled. The
successful completion of this project provided an important
test of the Group's shotgun sequencing strategy. Despite the
fact that the fruit fly is one of the most studied organisms
in biology, Celera and a team of scientists were able to
identify thousands of new genes that may be useful in
unlocking secrets of many human diseases.
-- Celera announced that it had completed the sequencing phase of
one human's genome and had begun assembling the sequenced
fragments. The Group believes that, with its new computational
tools, it will be able to assemble the fragments efficiently.
Celera will continue to sequence DNA from other humans in
order to build its polymorphism database.
-- In early April, Celera began the next phase of its information
business, sequencing the mouse genome. The mouse is considered
to be important to biomedical research as a model for studies
of human biology and medicines.
-- Financing and related activities
-- Celera completed a follow-on offering of its common stock. The
registration statement filed in connection with the offering
detailed the Group's business initiatives in functional
genomics. In implementing this strategy, Celera seeks to make
its discovery and information system the fundamental resource
in molecular medicine for acceleration of the development of
new pharmaceuticals and targeted diagnostics. To support these
initiatives, Celera intends to work closely with the PE
Biosystems Group to design proteomics systems with
substantially higher throughput and automation in order to
build a unique production-scale protein research center that
will complement its genomic research capabilities. The
offering raised more than $900 million during the quarter
which will be used primarily to fund this strategic expansion.
At the end of March, the Group had cash and equivalents worth
approximately $1 billion.
-- Also this quarter, the Board of Directors of PE Corporation
announced a two-for-one split of Celera Genomics Group common
stock, which was effective in February 2000. Per share results
in this press release reflect the split, which was effective
in February 2000.
For the nine months ended March 31, 2000, Celera reported
revenues of $27.7 million and a net loss after benefit for taxes of $67.8
million, or $1.29 per share. For the comparable period in fiscal 1999,
Celera's revenues were $7.4 million with a net loss after benefit for
taxes of $25.0 million, or $.50 per share.
PE Corporation currently comprises two operating groups. The
Celera Genomics Group, headquartered in Rockville, MD, intends to
become the definitive source of genomic and related medical
information. The PE Biosystems Group (NYSE: PEB), with sales of
$1.2 billion during fiscal 1999, develops and markets instrument-based
systems, reagents, software and contract services to the life science
industry and research community. PE Biosystems is headquartered in
Foster City, CA. Information about the Company, including reports and
other information filed by the Company with the Securities and
Exchange Commission, is available on the worldwide web at
www.pecorporation.com or by phoning 800.762.6923.
Certain statements in this press release are forward-looking. These
may be identified by the use of forward-looking words or phrases such
as "believe," "expect," "anticipate," "should," "planned," "estimated," and
"potential," among others. These forward-looking statements are based
on PE Corporation's current expectations. The Private Securities
Litigation Reform Act of 1995 provides a "safe harbor" for such
forward-looking statements. In order to comply with the terms of the
safe harbor, PE Corporation notes that a variety of factors could cause
actual results and experience to differ materially from the anticipated
results or other expectations expressed in such forward-looking
statements. The risks and uncertainties that may affect the operations,
performance, development, and results of Celera Genomics' businesses
include but are not limited to (1) operating losses to date; (2) a unique
and developing business plan; (3) dependence on the timely completion
of the sequencing and assembly of the human genome; (4) uncertainty
of revenue growth; (5) unproven use of genomics information to
develop products; (6) intense competition in the evolving genomics
industry; (7) dependence on customers in and subject to the risks of the
pharmaceutical and biotechnology industries; (8) heavy reliance on
strategic relationship with the PE Biosystems group; (9) potential
product liability claims; (10) liabilities related to use of hazardous
materials; (11) lengthy sales cycle; (12) dependence on the unique
expertise of its scientific and management staff; (13) uncertainty of
patent, copyright and intellectual property protection; (14) dependence
on computer hardware, software, and internet applications; (15) access
to biological materials; (16) legal, ethical and social issues affecting
demand for products; (17) disruptions caused by rapid growth of the
business; (18) government regulation of its products and services; (19)
risks of future acquisitions; and (20) other factors that might be
described from time to time in PE Corporation's filings with the
Securities and Exchange Commission.
Copyright (c) 2000. PE Corporation. All Rights Reserved. Celera,
Celera Genomics, and PE Biosystems are trademarks of PE
Corporation.
PE CORPORATION
CELERA GENOMICS GROUP
COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
2000 1999 2000 1999
-------- ------- ------ ------
Net revenues $ 11.1 $ 1.8 $ 27.7 $ 7.4
Costs and expenses
Research
and development 43.5 13.3 113.8 26.2
Selling, general and
administrative 10.5 7.0 28.4 17.6
Special charges - 0.8 - 1.4
-------- ------- ------ ------
Operating loss (42.9) (19.3) (114.5) (37.8)
Interest
income, net 5.8 0.1 10.2 0.1
-------- ------- ------ ------
Loss before income
taxes (37.1) (19.2) (104.3) (37.7)
Benefit for
income taxes 13.0 6.4 36.5 12.7
-------- ------- ------- -------
Net loss $(24.1) $(12.8) $ (67.8) $ (25.0)
======== ======= ======= =======
Net loss per share
Basic and diluted $ (0.45) $(0.25) $(1.29) $ (0.50)
Average common
shares
outstanding
Basic and
diluted 53,884,000 50,508,000 52,430,000 49,928,000
The recapitalization of the company on May 6, 1999, resulted in the
issuance of two new classes of common stock called PE
Corporation-Celera Genomics Group Common Stock and PE
Corporation- PE Biosystems Group Common Stock. Therefore,
earnings per share and shares outstanding for the three and nine months
ended March 31, 1999 are presented on a pro forma basis.
--30--jc/ny*
CONTACT: Celera Genomics Group
Media: Investors:
Heather Kowalski Charles Poole
(240) 453-3343 (203) 761-5400
heather.kowalski@celera.com charles.poole@celera.com
KEYWORD: MARYLAND
INDUSTRY KEYWORD: BIOTECHNOLOGY MEDICAL DEVICES PHARMACEUTICAL |
