|"further on track"|
But off track elsewhere. I've been wondering if EBIO will ever break out its sales from the Amersham and Qiagen agreements -- and now ABI, too -- and here I have one third of my answer. Given that this was hinted at in August, the stock is handling the news well today . . .
>>BOTHELL, Wash., Oct. 6 /PRNewswire-FirstCall/ -- Epoch Biosciences, Inc. (Nasdaq: EBIO - News), a provider of proprietary products that accelerate genomic analysis, today announced that the Company had terminated a distribution and licensing agreement with Amersham Biosciences, the life sciences business of Amersham plc (LSE: NYSE: OSE: AHM). The pact, established in 2002, pertained to the marketing of Epoch's MGB Eclipse(TM) Probe Systems by Amersham to the research market worldwide.
William G. Gerber, Chief Executive Officer of Epoch, said, "We were very disappointed that Amersham failed to meet contractually established sales minimums and regret that our recent discussions did not produce a solution satisfactory to Epoch. We decided to focus our energy on programs and partnerships that are tracking to plan and generating growing revenues. We are in discussions with other potential distribution partners for the MGB Eclipse product line, and are pleased at the level of interest being shown. In parallel, we are encouraged by increasing direct sales of our Assay Validated Probe product to pharmaceutical and biotechnology companies."
In 2002, Epoch and Amersham entered into an agreement under which Amersham became the exclusive worldwide sales, marketing and distribution partner to the research field of Epoch's MGB Eclipse Probe Systems for SNPs, and the co-exclusive worldwide sales and marketing partner to the research field for gene expression. In early August 2003, Epoch disclosed that Amersham's sales of custom and catalogue MGB Eclipse Probe Systems to end-users had not grown as rapidly as expected, that Amersham was unlikely to achieve minimum sales levels provided for in the agreement between the companies, and that discussions had been initiated with Amersham about the rate of end-user sales growth and the related contractual terms. The company further disclosed in August that it anticipated revenues from Amersham would be insignificant for the balance of 2003 and reduced its projected revenues for full year 2003 to between $8.5 and $9.5 million. Today's announcement does not change the guidance provided in August.
In October 2002, Epoch and QIAGEN N.V. entered into a license and supply agreement under which QIAGEN became the co-exclusive worldwide sales, marketing and distribution partner to the research field of MGB Eclipse probe products for gene expression. QIAGEN launched its QuantiTect Gene Expression Assays in May 2003 for catalogue products, and in September 2003 for custom products. Customers can visit www.qiagen.com to order QuantiTect Gene Expression Assays from QIAGEN.<<