ORCH
reports
Orchid Biosciences, Inc. Reports Second Quarter Financial Results
PRINCETON, N.J., Aug. 10 /PRNewswire/ -- Orchid BioSciences, Inc. (Nasdaq: ORCH - news) today reported financial results for the quarter and six months ended June 30, 2000.
Total revenues for the second quarter of 2000 increased to $4.6 million, up from $0.6 million for the same period in 1999. For the first six months of 2000, revenue increased to $8.1 million, up from revenue of $0.8 million for the comparable period in 1999. The revenue increase during the second quarter and first six months of 2000 resulted from placement of Orchid's SNPstream(TM) 25K instrument systems, sales of SNPware(TM) consumables, commencement of sales of MegaSNPatron(TM) single nucleotide polymorphism (SNP) scoring services, license revenues, and addition of Orchid's GeneScreen(TM) DNA testing operations. The results of operations for the quarter and six months ended June 30, 2000 include those of GeneScreen, Inc., which was acquired by Orchid on December 30, 1999.
Operating expenses excluding cost of product revenue and clinical laboratory testing, compensation and research and development charges from equity issuances, and amortization of acquired intangible assets, including goodwill, were $12.8 million for the second quarter of 2000, compared to $5.3 million for the same period in 1999 and $19.3 million for the first six months of 2000, compared to $9.6 million for the comparable period in 1999. Total operating expenses for the second quarter of 2000 were $23.7 million, compared to $5.7 million for the same period in 1999. For the first six months of 2000, total operating expenses were $35.4 million, compared to $10.2 million for the comparable period in 1999. The increase in operating expenses resulted from increased research and product development activities, investments to accelerate commercialization of Orchid's SNPstream and SNPware product lines, infrastructure expansion, recruitment of critical technical, marketing, administrative and business development staff, inclusion of operating expenses of GeneScreen, as well as charges related to an agreement with Sarnoff Corporation and compensation charges from equity issuances.
Orchid reported a net loss of $18.0 million for the second quarter of 2000 and $25.5 million for the first six months of 2000, compared to a net loss of $5.7 million and $9.7 million for the same periods in 1999. Net loss allocable to common stockholders was $18.0 million for the second quarter of 2000 and $55.1 million for the first six months of 2000, or $0.94 and $5.52 per basic and diluted share, compared to $5.7 million and $9.7 million, or $7.77 and $13.39 per basic and diluted share, for the comparable periods in 1999. Net loss per share excluding compensation and research and development charges from equity issuances, the beneficial conversion feature, and amortization of acquired intangible assets, including goodwill, would have been $0.31 per basic and diluted share for the second quarter of 2000 and $0.45 for the first six months of 2000, compared to $0.16 and $0.28 per basic and diluted share for the same periods in 1999. These loss per share amounts are calculated using weighted average shares outstanding after giving effect to the issuance of and conversion of all preferred stock to common stock, and the sale of 6,900,000 shares of common stock sold in Orchid's Initial Public Offering, as if they had occurred as of January 1, 1999.
At June 30, 2000, cash, cash equivalents and short-term investments totaled $87.9 million, which includes the net proceeds from Orchid's initial public offering.
``This has been a momentous time for Orchid. We completed an initial public offering and demonstrated significant progress in each major component of our business,'' said Dale Pfost, Ph.D., chairman, president and chief executive officer of Orchid. ``We achieved major successes in implementing our unique Platform Propagation(TM) strategy, announcing three important deals since May, including obtaining an additional leading technology platform for our SNPstream line of instruments and awarding non-exclusive licenses to our proprietary SNP-IT(TM) technology to the two leading providers of DNA sequencers. We reported increases in sales of our turnkey SNPstream instrument solutions and SNPware consumables and in our MegaSNPatron SNP scoring services. And our recently announced breakthrough collaboration with The SNP Consortium will enable Orchid to be the first to commercially offer customers content-rich SNP panels.''
``Orchid's outstanding achievements in the second quarter continue the momentum of our successful IPO in May,'' said Donald Marvin, chief financial officer and chief operating officer of Orchid. ``We continue to demonstrate our commitment to building shareholder value by our progress in commercializing our technology, products and services with leading pharmaceutical and biotechnology companies, including Bristol-Myers Squibb, Millennium Pharmaceuticals, PE Biosystems, Amersham Pharmacia Biotech and Luminex.''
Recent highlights include:
* In May, Orchid completed an initial public offering of 6.9 million
shares of its common stock, at a price of $8.00 per share, with net
proceeds to the company of approximately $48.4 million.
* During the second quarter, Orchid announced a collaboration with Luminex
Corporation to develop an affordable, rapid-throughput system for
conducting single nucleotide polymorphism (SNP) scoring, or genotyping.
This new bead-based, medium-throughput SNPstream analyzer, based on
Luminex's open-platform LabMAP(TM) system and incorporating Orchid's
SNP-IT primer extension technology, is targeted at academic and
biotechnology labs and will be designed to score thousands of SNPs per
day. Orchid intends to commercialize and market the new platform as
part of its growing lines of SNPstream instruments and SNPware
consumables.
* In July, Orchid and The SNP Consortium, a collaborative venture of many
of the world's leading pharmaceutical firms, announced an agreement
under which Orchid will determine the frequency of 60,000 SNP genomic
markers in diverse populations, the largest analysis of its kind to
date. Orchid will perform this work in its high-throughput MegaSNPatron
service facility. As a result of this collaboration, Orchid will
develop content-rich SNP panels that the company can then rapidly
commercialize in the form of proprietary SNPware kits.
* The company entered into two key strategic licensing agreements whereby
it granted nonexclusive licenses to PE Biosystems, which is now doing
business as Applied Biosystems, and Amersham Pharmacia Biotech to
incorporate Orchid's patented SNP-IT primer extension technology in
reagent kits, enabling researchers to conduct genotyping on their
existing DNA sequencers. With these two licenses, which are examples of
Orchid's Platform Propagation strategy, the company's SNP-IT technology
will be available to perform genotyping analyses on an estimated 90% of
the installed base of DNA sequencers already available in laboratories
today.
* In July, Orchid announced Bristol-Myers Squibb signed a multi-year
agreement to purchase Orchid's turnkey integrated SNPstream 25K solution
for industrial-scale SNP scoring. Bristol-Myers Squibb researchers will
conduct high-throughput genotyping using Orchid's SNPstream 25K system
and SNPware kits. Under terms of the agreement, Orchid will receive an
upfront payment and fees for SNPware consumables.
* In July, the company announced a service agreement with Millennium
Pharmaceuticals for Orchid to perform SNP scoring on samples provided by
Millennium. This is the first commercial service agreement publicly
announced by the company.
Orchid BioSciences, Inc. (Nasdaq: ORCH - news) is a leading provider of products, services and technologies for single nucleotide polymorphism (SNP) scoring and genetic diversity analyses. Orchid has developed SNP-IT, its proprietary SNP analysis technology, and markets SNPstream instruments and SNPware consumables that rapidly generate highly accurate, cost effective SNP information. SNP-IT is usable in environments ranging from small-scale laboratories to large commercial facilities. Its versatility also enables Orchid to partner with industry leaders to make SNP-IT-enabled products available on a wide variety of instrument platforms. Orchid also provides high throughput SNP scoring services to pharmaceutical, agricultural and academic customers through its MegaSNPatron facility, and DNA testing through its GeneScreen facilities, which conduct paternity, forensics and transplantation testing. Through its Clinical Genetics Network(TM), Orchid also seeks to identify proprietary medical applications of SNPs. More information on Orchid can be found at its Web site orchid.com.
All statements in this press release that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act as amended, including statements regarding Orchid's ``expectations,'' ``projections,'' ``strategies,'' ``forecasts,'' ``intentions,'' or the like. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, uncertainties relating to technologies, product development, manufacturing, market acceptance, cost and pricing of Orchid products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, and patent protection and litigation. These and other risk factors are discussed in the Company's Registration Statement on Form S-1 declared effective by the Securities and Exchange Commission on May 4, 2000. Orchid expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Orchid's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.
Orchid BioSciences, Inc.
Condensed Consolidated Financial Statements
(in thousands except share and per share data)
(unaudited)
Condensed Consolidated Statement of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Product revenue $695 -- $930 --
Clinical laboratory
testing 3,279 -- 6,160 --
Collaboration, license
and other revenues 620 557 970 807
Total revenues 4,594 557 8,060 807
Operating expenses:
Cost of product revenue 547 -- 610 --
Cost of clinical
laboratory testing 2,595 -- 4,835 --
Selling, general
and administrative 8,233 2,365 13,176 4,000
Research and
development 12,341 3,381 16,742 6,157
Total operating
expenses 23,716 5,746 35,363 10,157
Other income (expense),
net 1,154 (471) 1,756 (398)
Net loss (17,968) (5,660) (25,547) (9,748)
Beneficial conversion
feature of preferred
stock -- -- 29,574 --
Net loss allocable
to common
stockholders $(17,968) $ (5,660) $(55,121) $ (9,748)
Basic and diluted net
loss per share
allocable to common
stockholders $(0.94) $(7.77) $(5.52) $ (13.39)
Weighted average shares used
in computing basic and diluted
net loss per share 19,040,917 728,890 9,981,418 727,934
Basic and diluted net loss
per share, excluding compensation
and research and development charges
from equity issuances, beneficial
conversion feature and amortization
of acquired intangible assets,
including goodwill $(0.31) $(0.16) $(0.45) $(0.28)
Weighted average shares used in
computing basic and diluted net
loss per share 33,115,230 32,410,452 32,859,356 32,409,496
Note: Weighted average shares outstanding gives effect to the issuance of
and conversion of all preferred stock to common stock, and the sale
of 6,900,000 shares of common stock sold in Orchid's Initial Public
Offering, as if they had occurred as of January 1, 1999.
Condensed Consolidated Balance Sheet Data
December 31, June 30,
1999 2000
Cash, cash equivalents and
short-term investments $33,804 $87,851
Working capital 27,275 87,357
Total assets 94,856 155,904
Long-term debt, less current portion 4,122 3,598
Mandatorily redeemable convertible
preferred stock 88,946 --
Total stockholders' equity (deficit) (8,285) 143,472
Contact: Donald R. Marvin, Chief Financial Officer and Chief Operating Officer, 609-750-2200, and Barbara L. Lindheim, Vice President, Strategic Communications, 609-750-2200, both of Orchid BioSciences, Inc.; or Chris Morrison (media), 212-696-4455, ext. 230, and Mary Claire Bice (investors), 212-696-4455, ext. 238, both of Noonan/Russo Communications, Inc., for Orchid.
SOURCE: Orhcid BioSciences, Inc.
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