Ciphergen Reports Second Quarter 2006 Financial Results and Substantial Development Progress
August 14 2006 - 5:15PM
PR Newswire (US)
- Definitive Agreement Signed for Bio-Rad Laboratories to Acquire
Instrument Business - FREMONT, Calif., Aug. 14
/PRNewswire-FirstCall/ -- Ciphergen Biosystems, Inc. (NASDAQ:CIPH)
today announced financial results for the second quarter ended June
30, 2006. In a separate press release, Ciphergen also announced
that it has signed a definitive agreement for Bio-Rad Laboratories
to acquire Ciphergen's proprietary proteomics instrument business
which includes Ciphergen's Surface Enhanced Laser
Desorption/Ionization (SELDI) technology, ProteinChip(R) Arrays and
accompanying software. Bio-Rad will purchase this business for
approximately $20 million in cash. In addition, Bio-Rad is making a
$3 million equity investment in Ciphergen. "Today we announced a
significant strategic milestone that accelerates our transformation
into a leading specialized diagnostics provider," stated Gail S.
Page, President and CEO of Ciphergen. "We have a dedicated
management team and the financial resources to build an exciting,
attractive diagnostics business for long-term growth and sustained
shareholder value." Second Quarter and Six-Month 2006 Financial
Results The Company reported net revenue of $5.3 million in the
second quarter of 2006, compared to $6.9 million in the second
quarter of 2005. On a generally accepted accounting principles
(GAAP) basis, net loss declined 18 percent to $7.7 million in the
second quarter of 2006, compared to $9.4 million in the second
quarter of 2005. Excluding the impact of FAS 123(R) which was
adopted by Ciphergen on January 1, 2006, Ciphergen's non-GAAP net
loss declined 23 percent to $7.3 million in the second quarter of
2006. Revenue for the first half of 2006 was $12.3 million compared
to $13.6 million in the first half of 2005. For the six months
ended June 30, 2006, on a GAAP basis the net loss was $13.2
million, compared to $18.7 million in the same period in 2005. The
net loss on a non-GAAP basis for the first half of 2006 was $12.3
million. At June 30, 2006, the Company's cash and investments were
$20.6 million, compared to $24.4 million at March 30, 2006. Recent
Highlights "In the second quarter, we obtained favorable clinical
results supporting our ovarian and prostate cancer diagnostics
programs, and presented favorable study results at the ASCO and AUA
annual meetings. We also recruited and established a Scientific
Advisory Board to help direct and prioritize our other programs for
further development and commercialization," continued Ms. Page.
Definitive Agreement with Bio-Rad Laboratories to Purchase
Ciphergen's Instrument Business. -- Bio-Rad will manufacture, sell
and market the SELDI technology to the life sciences marketplace
for proteomics applications, such as biomarker discovery,
characterization and validation. Ciphergen will retain exclusive
rights to the diagnostics market. In addition, Ciphergen will have
a supply agreement with Bio-Rad to purchase SELDI instruments and
consumables for the continued development of its diagnostics
business. The companies will collaborate to identify SELDI
customers interested in partnering with Ciphergen to commercialize
biomarker discoveries. Ovarian Cancer Diagnostic Progress. -- At
the 2006 Annual Meeting of the American Society of Clinical
Oncology (ASCO) held in early June, Ciphergen announced results of
the first ever large-scale multi-institutional independent
validation study of biomarkers discovered through current clinical
proteomics efforts. As in previous studies, an index derived from
the seven markers tested demonstrated improved specificity for
discriminating ovarian cancer from benign pelvic masses, as well as
for the detection of early stage cancer. -- The biomarkers
demonstrated statistically significant power to differentiate
ovarian cancer patients from women with benign disease (p
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