BLUE HP manager glad he didn't take any fliers on GNOM. "Workforce reduction" of 67%! Sheesh!
>>BOULDER, Colo.--(BW HealthWire)--Oct. 4, 2001--Genomica Corporation (Nasdaq: GNOM - news), a bioinformatics software developer, today announced that it is adopting a new product and corporate strategy that requires restructuring of its operations, including a workforce reduction.
``We are making a change in strategy to reflect observable developments in the market environment for life science informatics products,'' said Genomica CEO Teresa Ayers. ``Our initial target market for third-party enterprise software is not developing fast enough to build stockholder value within a reasonable timeframe. We are going to shift toward combining our genetic analysis software with hardware, content and data generation solutions. We're exploring a broad range of options to leverage new markets and distribution channels, while continuing to support all of our customers and meet our contract and partnership obligations.''
The Company today reduced its 150-person workforce by 100 employees, 90 of whom were in the Company's headquarters in Boulder. All charges related to the restructuring will be included in the fourth quarter's financial results. As a result of the restructuring, the Company expects to be able to operate near cash flow breakeven through 2002.
``With market adoption rates slower than expected, we are acting to protect our position in genetic analysis software and our very favorable cash position,'' said Ayers. ``This move strengthens our financial situation, enhances Genomica's potential for strategic partnerships, and ensures our ability to continue supporting our customers while we evaluate further the many strategic alternatives currently available to us.''
Conference Call and Web Cast Scheduled for October 5, 2001, at
10:00 a.m. Eastern
Stockholders, media and the public are invited to participate in a conference call with management on Friday, October 5, 2001, at 10:00 a.m. Eastern. Teresa Ayers, Chief Executive Officer, and Dan Hudspeth, Chief Financial Officer, will lead the call.
Date: October 5, 2001
Time: 10:00 a.m. Eastern
Conference call numbers:
Toll-free: 800.289.0730
Toll/International: 913.981.5509
Web cast: www.genomica.com
A replay of the conference call can be accessed by dialing toll-free 888.203.1112 and outside the U.S., 719.457.0820. The access code is 423836. The replay and web cast will be available through October 12, 2001.<<
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Also, MDCO, which actaully has a product out there, lowers guidance on it. But maybe this is a buying op? Anybody haave thoughts?
>>CAMBRIDGE, Mass., Oct 3, 2001 (BW HealthWire) -- The Medicines Company (NASDAQ: MDCO chart, msgs) announced today that due to a more rapid than expected adoption by doctors of a shorter duration regimen of ANGIOMAX(R) (bivalirudin) and the need to expand its sales force in target hospitals it has lowered previous revenue guidance for 2001 and 2002.
The Company now expects revenues of $13 to $14 million in 2001, and revenues of $36 to $41 million in 2002. Previous revenue guidance for 2001 suggested revenues in the range of $18 to 22 million and 2002 revenues of approximately $45 to 55 million. For the quarter ended September 30, 2001, the Company expects to report revenues of approximately $3.5 million.
Despite lower than expected revenues, the Company is ahead of its forecasted expectations for use in patients, demonstrating strong acceptance of ANGIOMAX by the hospitals and doctors where its sales force has been active to date. The Company is also ahead of its forecasted schedule with respect to hospital stockings and formulary adoptions. As of September 28, of the 515 hospitals called on by the Company's sales force, 58% (299) have stocked ANGIOMAX and 39% (200) have ANGIOMAX on formulary, both ahead of the Company's expectations.
Based on customer acceptance of ANGIOMAX, the Company announced in July that it would increase the size of the Company's sales organization to adequately resource all 750 target hospitals. As of October 1, the sales force has been increased by 30% and the Company now has 90 Representatives, Regional Account Specialists, National Account Managers, Regional Managers and Medical Science Liaisons dedicated to selling ANGIOMAX.
While the Company anticipated a gradual reduction in patient usage over time, it is finding that doctors are moving more quickly toward shorter infusions in actual practice. In the marketplace today, the majority of ANGIOMAX-treated patients are being treated with one vial. As a result, while the number of patients receiving ANGIOMAX therapy is slightly ahead of the Company's forecast, the vial use is behind the Company's launch forecast. Since the Company's launch forecast anticipated the reduction in duration of infusion per patient over the first three years of launch, it believes that the impact of this earlier transition will primarily be felt in the first two years of launch.
"We estimate that we are approximately 60 days behind our launch ramp for revenue growth due to lower vial per patient use. As is common with drugs in the hospital, doctors are tending to use shorter duration infusions of ANGIOMAX, resulting in fewer vials used per patient. However, by many objective measures the commercial launch of ANGIOMAX has been successful with strong stocking and formulary adoption and high levels of patient usage in hospitals we have reached to date," said Dr. Clive A. Meanwell, Executive Chairman.
"We are very encouraged by our success in the hospitals we have resourced to date. Our progress reinforces our belief that as we expand our hospital coverage and reach more patients, ANGIOMAX sales will accelerate on a trajectory consistent with our original expectations," said David M. Stack, President and Chief Executive Officer. "We believe ANGIOMAX delivers significant benefits to patients and hospitals alike, and we are confident that its effectiveness, safety profile and potential cost savings compared to heparin will continue to attract new customers in the years ahead."
Clive Meanwell will host a conference call tomorrow morning at 8:30 AM Eastern Time. To participate in the call, please dial 800.523.6069. International participants may dial 1.847.413.4838. If you cannot participate in the live call, a replay will be available for one week. To listen to the replay, please dial 888.843.8954, or 1.630.652.3043 internationally and enter code 4832965. Alternatively, a webcast will be available for one week on our homepage, www.themedicinescompany.com.<<
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Cheers, Tuck |
