Ciphergen Reports First Quarter 2007 Financial Results and Business Progress
May 16 2007 - 10:00AM
PR Newswire (US)
- Conference Call Today at 11 a.m. Eastern Time - FREMONT, Calif.,
May 16 /PRNewswire-FirstCall/ -- Ciphergen Biosystems, Inc.
(NASDAQ:CIPH) today announced financial results for its first
quarter ended March 31, 2007 and provided an update on business
progress. "We are excited about the advances we are making in each
of our diagnostic programs," said Gail S. Page, President and Chief
Executive Officer of Ciphergen. "Development and validation of our
test for thrombotic thrombocytopenic purpura (TTP) and our test to
detect peripheral arterial disease (PAD) are progressing well. Our
ovarian cancer program is moving forward and our clinical trial
remains on track for submission by the end of 2007 to the FDA for
clearance." "In keeping with our mission to be a leader in high
value molecular diagnostic tests, the board of directors recently
voted to change the name of the Company to Vermillion, Inc. This
change requires stockholder approval, which we hope to receive at
our annual meeting on June 29, 2007. We believe that this new name
befits the substantial transformation that has occurred over the
last fifteen months and provides a new underpinning from which to
build a significant diagnostics company," continued Ms. Page. First
Quarter 2007 Financial Results On November 13, 2006, Ciphergen sold
its life science research business to Bio-Rad Laboratories. Going
forward the Company does not anticipate having revenue until its
diagnostic tests are commercialized. Accordingly, the Company had
negligible revenue in the first quarter of 2007 compared to $7.1
million in the first quarter of 2006. Total operating expenses for
the first quarter of 2007 were $5.7 million compared to $8.8
million in the same period last year. The reduction in operating
expenses was due primarily to the elimination of selling and
marketing expenses associated with the Company's former life
sciences business. The net loss for the first quarter of 2007 was
$6.0 million compared to $5.5 million for the same period in 2006.
Basic and diluted net loss for the first quarter of 2007 was $0.15
per share based on 39.2 million shares outstanding compared to a
basic and diluted net loss per share of $0.15 per share for the
same period in 2006 based on 36.0 million shares outstanding. At
March 31, 2007, the Company's cash and investments were $13.6
million, compared to $17.7 million at December 31, 2006. Net cash
used in operating activities in the first quarter of 2007 was $5.6
million. In addition, Ciphergen has $1.2 million remaining to draw
from a loan facility from Quest Diagnostics, which indebtedness is
forgivable upon accomplishment of certain milestones. Recent
Accomplishments Recent accomplishments included the following: --
Hired Mr. Steve Lundy as Senior Vice President of Sales and
Marketing who brings nearly 20 years of experience managing sales
and marketing functions in diagnostic industries to Ciphergen. --
Initiated a prospective clinical trial with approximately 25 sites
starting to enroll patients to evaluate its ovarian cancer triage
test to differentiate women with ovarian cancer from women with
benign pelvic masses. -- Presented data at the annual meeting of
the Society of Gynecologic Oncologists describing results of a
prospective clinical study at Rigshospitalet (Copenhagen).
Ciphergen's test to distinguish benign from malignant pelvic masses
had 84% sensitivity, 80% specificity as compared to 33% and 67%,
respectively, for current standard of care. Based on these results,
twice as many women with ovarian cancer could be appropriately
referred to the gynecologic oncologist if this test were used. --
Presented data at the American Association for Cancer Research
annual meeting on the discovery of several protein biomarkers that
may be potential diagnostic markers in detection of early-stage
ovarian cancer. These findings support Ciphergen's efforts to
develop a diagnostic for monitoring women at high-risk for ovarian
cancer, one of three diagnostic programs that Ciphergen currently
has under development for ovarian cancer. -- Continued to develop
and clinically validate, in collaboration with The Ohio State
University Research Foundation, a proteomics-based diagnostic test
to detect thrombotic thrombocytopenic purpura (TTP), a hematologic
disease that causes abnormal clotting and carries the risk of
neurologic, renal, and cardiac dysfunction and even death. This
test is aimed at helping physicians make the correct diagnosis,
initiate timely treatment, evaluate response to therapy, and
predict the risk of recurrence in patients with TTP. -- With Quest,
we have continued to validate a blood-based assay for the detection
of peripheral arterial disease (PAD). This is the second test that
Quest has agreed to jointly develop and commercialize as part of
the Companies' strategic collaboration. There are currently 12
million Americans diagnosed with PAD and there are over 30 million
Americans at risk for the disease who would benefit from early
diagnosis. Upcoming Milestones Ciphergen anticipates accomplishing
the following milestones in 2007: -- Complete the prospective
clinical trial of its ovarian tumor triage test and submit the
results to the U.S. Food and Drug Administration for clearance as
the first test for use as an adjunct to other diagnostic methods to
help physicians in the differential diagnosis of a persistent
pelvic mass; -- Register the Company and its tests in at least one
country in the European Union; -- Continue to move its diagnostic
tests in TTP and PAD forward through clinical validation studies
and development to prepare for market launch in the U.S. --
Continue to work with collaborators to identify and in-license
biomarkers for future diagnostics. Conference Call A conference
call and webcast will be held today at 11 a.m. Eastern Time to
discuss these results and provide an update on business
developments. To access the live conference call via phone, dial
(877) 325-7371 from the United States and Canada or (706) 634-0768
internationally. The conference ID is 21338536. Please dial-in
approximately ten minutes prior to the start of the call.
Additionally, you may access the live and subsequently archived
webcast of the conference call from the Investor Relations section
of the Company's website at http://www.ciphergen.com/. Please
connect to the web site at least 15 minutes prior to the call to
allow for any software download that may be necessary. A telephone
replay will be available beginning approximately two hours after
the call through May 23, 2007 and may be accessed by dialing (800)
633-8284 from the United States and Canada or (+1 402) 977-9140
internationally. The replay passcode is 21338536. An archived
replay of the webcast will be available until the next quarterly
call. About Ciphergen Ciphergen Biosystems, Inc. is dedicated to
the discovery, development and commercialization of novel
high-value diagnostic tests that help physicians diagnose, treat
and improve outcomes for patients. Ciphergen, along with its
prestigious scientific collaborators, has ongoing diagnostic
programs in oncology/hematology, cardiology and women's health with
an initial focus in ovarian cancer. Based in Fremont, California,
more information about Ciphergen can be found on the Web at
http://www.ciphergen.com/. Safe Harbor Statement This news release
contains forward-looking statements that involve significant risks
and uncertainties, including those discussed below and others that
can be found in our Form 10-K for the year ended Dec. 31, 2006, and
in our periodic reports on Form 10-Q and Form 8-K. Ciphergen is
providing this information as of the date of this news release and
does not undertake any obligation to update any forward-looking
statements contained in this document as a result of new
information, future events or otherwise. Examples of such
forward-looking statements include statements regarding Ciphergen's
expectations for the timing of completion of its ovarian tumor
triage test clinical trial and the related submission to the U.S.
Food and Drug Administration, its TTP and PAD program plans, and
expected plans for European registration and future collaborations.
Actual results may differ materially from those projected in such
forward-looking statements due to various factors, including the
risk that Ciphergen is unable to successfully utilize resources and
execute plans for its molecular diagnostics business. Investors
should consult our Form 10-K for the year ended Dec. 31, 2006, as
amended, and our periodic reports on Form 10-Q and Form 8-K NOTE:
Ciphergen is a registered trademark of Ciphergen Biosystems, Inc.
Ciphergen Biosystems, Inc. and subsidiaries Unaudited Condensed
Consolidated Statements of Operations (Dollars in Thousands, Except
per share data) Three Months Ending March 31 2007 2006 Revenue $21
$7,064 Cost of Revenue 15 3,404 Gross Profit 6 3,660 Operating
expenses: Research and development 1,911 2,992 Sales and marketing
556 3,503 General and administrative 3,197 2,279 Total operating
expenses 5,664 8,774 Loss from continuing operations (5,658)
(5,114) Interest and other income (expense), net (383) (236) Loss
from continuing operations before income taxes (6,041) (5,350)
Income tax provision (benefit) from continuing operations 6 114 Net
loss from continuing operations (6,047) (5,464) Net loss $(6,047)
$(5,464) Basic and diluted net loss per share $(0.15) $(0.15)
Shares used in computing basic and diluted net loss per share
39,233 35,999 Ciphergen Biosystems, Inc. and subsidiaries Unaudited
Condensed Consolidated Balance Sheets (Dollars in Thousands) March
31, December 31, 2007 2006(1) ASSETS Current assets: Cash and cash
equivalents $13,582 $17,711 Accounts receivable, net 29 29 Prepaid
expenses and other current assets 1,822 2,300 Total current assets
15,433 20,040 Property, plant and equipment, net 2,155 2,260 Other
long term assets 714 716 Total assets $18,302 $23,016 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
$3,174 $2,401 Accrued liabilities 3,372 4,600 Current portion of
deferred revenue 21 45 Total current liabilities 6,567 7,046 Long
term debt owed to related party 8,750 7,083 Convertible senior
notes, net of discount 18,466 18,428 Other long term liabilities
260 360 Total liabilities 34,043 32,917 Stockholders' deficit:
Common stock 39 39 Additional paid in capital 208,204 207,991
Accumulated other comprehensive loss (77) (71) Accumulated deficit
(223,907) (217,860) Total stockholders' deficit (15,741) (9,901)
Total liabilities and stockholders' deficit $18,302 $23,016 (1) The
condensed consolidated balance sheet at December 31, 2006 has been
derived from the audited consolidated financial statements at that
date included in the Company's Form 10-K for the fiscal year ended
December 31, 2006. DATASOURCE: Ciphergen Biosystems, Inc. CONTACT:
Sue Carruthers, Investor Relations of Ciphergen Biosystems, Inc.,
+1-510-505-2297; or Daryl Messinger, PRIR of WeissComm Partners,
+1-415-946-1062, for Ciphergen Biosystems, Inc. Web site:
http://www.ciphergen.com/
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