SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

   Biotech / MedicalEBIO: Epoch Pharmaceuticals


Previous 10 Next 10 
To: Biomaven who wrote (5)12/28/2000 3:16:16 PM
From: tuck
   of 33
 
Peter,

Thanks. Maybe the downward revisions are part of a general segment revision downward on the discovery companies because of the perception that it's a crowded field. The take out price on Trega supports this view; it was pretty slight. Tempted to average Trickle in for more. Will have to dig some more to find out why the revision.

Cheers, Tuck

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: tuck who wrote (6)12/28/2000 3:57:33 PM
From: JR
   of 33
 
Tuck, could you elaborate on the specifics of the Trega take-out price. Thanks.

What are the specific downward revisions in earnings for EBIO? Are they significant...that much so to value the company at $4-5/shar3? I think we're seeing people selling into the year-end taxloss season in addition to a market not willing to pay for early stage company without earnings. Sad thing is, the management went out of their way to position the acquisition as a positive indication about the probe business for 2001 and future.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: JR who wrote (7)12/28/2000 4:04:05 PM
From: tuck
   of 33
 
JR,

I concur that both bear market and year end pressures are adding to the drop. Re: TRGA: it actually got a substantial premium, but that's because it had drifted into penny stock status. Compare the take out price of $1.35/share to the 52 week range for an idea of how little anyone made on this take out. Implication; such companies are not in favor. To be fair, I am not sure how good a comp TRGA is for EBIO, but they're in the same forest, if not the same grove.

Message 15085356

Cheers, Tuck

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: tuck who wrote (8)12/28/2000 4:36:39 PM
From: JR
   of 33
 
Tuck,
You make some good points. Only the highly visible, widely followed biotechs are acting well right now. EBIO is in neither group. Their niche is a good one, though, and they should become recognized for the company they keep...Applied Biosystems. Second deal was with Third Wave. Company is about to complete a third deal shortly.

They said the manufacturing acquisition would take 2001 revenues up from just under $4 million to $11 million with a loss of about 11 cents per share. Auerbach was showing a loss of 9 cents in 2001 on $3.8 million revenues.

The key is, how quickly they can accelerate demand for their probes. At some point between $11 to $20 million in volume, they will clearly go profitable if they control costs. The markets they serve are and will continue to grow very quickly (+30%/yr.) according to most forecasts.

$5 share purchases this week might look very good a few months out from now. Also, recent favorable mention about Epoch in NYTimes Biotech article where a fund manager was buying it recently as it was at attractive pricing below $8 or so.

Appreciate any additional information you can provide. Thanks

Share RecommendKeepReplyMark as Last Read


To: tuck who wrote (2)1/2/2001 2:32:24 PM
From: JR
   of 33
 
Tuck-still interested in Auerbach's estimate of EBIO's 2001 losses, which you said he increased "dramatically". In his earlier report, he had a 9 cents loss per share on $3.8 million in revenues. EBIO has increased the revenue estimate to $11 million for 2001. So, where did he take the earnings loss to and based on what?

Thanks

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: JR who wrote (10)1/2/2001 2:57:36 PM
From: tuck
   of 33
 
OK,

If you followed the link in post #4, you would see the revision occurred roughly a month ago. That's the time frame I know of. The one analyst has to be Auerbach. Look in the "consensus EPS trend" frame (center left):

biz.yahoo.com

Haven't seen an actual report, so I don't know what he based it on. I concur with Peter that the acquisition should not be that big a hit. Whatever, the change from a loss of four cents to a loss of eleven counts as dramatic, in my book. Apologies if this is old stuff to you, but hopefully I've made clearer what I was talking about.

Of course, it wouldn't be the first time Yahoo's data was slightly off. If you can share better data, please do.

Cheers, Tuck

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: tuck who wrote (11)1/2/2001 8:03:19 PM
From: JR
   of 33
 
Tuck--Thanks for identifying your souce (Yahoo).

The FSVK (Auerbach) report issued Aug. 11, 2000 projects negative earnings 9 cents/share for 2001. I don't know where Yahoo got 4 cents. An increase from 9 cents to 11 cents is significant, but nothing like an increase from 4 to 11.

Auerbach estimates that when total revenues hit $14 - 22 million annually, EBIO can earn from 25 cents to 52 cents per share. Given that management has revised upward the 2000 revenue projection to $11 million during the November cc, they are getting close to profitability. Their plan to market and sell a line of probes could speed this process up, especially if their reagents, etc. are as enabling to a variety of users as Auerbach explained in his report.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: JR who wrote (12)3/9/2001 4:03:46 PM
From: tuck
   of 33
 
JR,

Given that management has revised upward the 2000 revenue projection to $11 million during the November cc, they are getting close to profitability.

>>Epoch Biosciences Announces Fourth Quarter and Fiscal 2000 Financial Results

BOTHELL, Wash., March 6 /PRNewswire/ -- Epoch Biosciences, Inc. (Nasdaq: EBIO - news), a developer of proprietary chemistry with commercial applications in the fields of genomics and molecular diagnostics and a manufacturer of specialty oligonucleotides, today reported financial results for its fourth quarter and fiscal year ended December 31, 2000. Net loss for the fourth quarter was $1.4 million, or $0.05 per share, compared with net loss of $1.4 million, or $0.08 per share, in the fourth quarter of 1999. For the fiscal year ended December 31, 2000, net loss was $4.9 million, or $0.20 per share, compared with a net loss of $4.7 million, or $0.30 per share, for the 1999 fiscal year.

Revenues for the fourth quarter were $945,000 compared to $11,000 in the fourth quarter of 1999, reflecting the sale of chemical intermediates to Applied Biosystems, increased product revenues from the acquisition of Synthetic Genetics, a provider of a broad line of specialty oligonucleotides to the research market, and increased contract research revenues. For fiscal 2000, revenues were $1.4 million, compared to $181,000 for fiscal 1999. The increased revenues in 2000 primarily reflect the sale of chemical intermediates to Applied Biosystems, and increased product revenues from the acquisition of Synthetic Genetics. The Synthetic Genetics acquisition closed November 15, 2000, and was accounted for as a purchase. Accordingly, Epoch's results of operations for the fourth quarter and year ended December 31, 2000 includes the results at Synthetic Genetics for the 45-day period from November 16 through December 31, 2000.

At December 31, 2000, the Company held cash and cash equivalents of $12.1 million, up from $1.8 million at December 31, 1999.

Fourth Quarter and Full Year 2000 Highlights

``The fourth quarter of 2000 saw significant transition at Epoch with several positive strategic and operational developments,'' commented William G. Gerber, M.D., chief executive officer of Epoch. ``Primary among those are the acquisition of Synthetic Genetics in November, enabling the company to dramatically increase its oligonucleotide manufacturing capacity, the execution of a development, licensing and supply agreement with Third Wave Technologies, and the completion and occupancy of the company's new research and development and headquarters facilities in Bothell, Washington.''

``The acquisition of Synthetic Genetics of San Diego, California, a manufacturer of specialty oligonucleotides, gives us the ability to manufacture TaqMan® probes for Applied Biosystems and to introduce our own proprietary line of probes for genetic analysis to the marketplace, currently planned for the second half of 2001,'' said Sanford S. Zweifach, Epoch's President.

Additional significant accomplishments during the year included:

* Raising $10 million in a private equity financing from a group of
prominent investors, and $9.5 million from the exercise of warrants,
thereby facilitating re-listing on the Nasdaq National Market, and
providing the capital resources to accelerate research and pursue the
full commercial potential of the Company's technologies;

* Forming a strategic alliance with Specialty Laboratories to jointly
develop assays to test for residual human leukemias;

* Significantly expanding the strategic alliance with Applied Biosystems
to incorporate Epoch's technology in the entire line of Applied
Biosystems TaqMan® reagent products, and to provide Epoch with rights
to manufacture a percentage of MGB TaqMan® probes sold by Applied
Biosystems; and

* Receiving several patents on Epoch's technologies, including its Minor
Groove Binder compounds and the use of modified nucleotide in DNA
probes to detect single nucleotide polymorphisms (SNP's).

Outlook for 2001

``Calendar 2000 was a great year for Epoch, a year in which we laid the foundation for Epoch's future growth. We anticipate another exciting year for Epoch in 2001. We enter the year with the capital resources and product strategy necessary to capitalize on the large market opportunity for reagents for genetic analysis. Further, we have recently added to the management team that is charged with executing the strategy,'' said Gerber.<<

snip

>>Epoch Biosciences, Inc.
Statements of Operations
(dollars in thousands, except per share data)

3 Months Ended December 31, Years Ended December 31,
2000 1999 2000 1999
(unaudited) (unaudited)

Revenues $945 $11 $1,367 $181

Operating expenses:
Cost of product revenue 317 -- 317 --
Research and
development 1,013 725 3,468 2,858
Selling, general
and administrative 1,237 331 3,390 1,102
Total operating
expenses 2,567 1,056 7,175 3,960

Operating loss (1,622) (1,045) (5,808) (3,779)<<

snip again, emphasis mine

Revenues for the year were less than 1.4 million. So it looks like management's revised guidance was way, way, off. I'm guessing you heard management's figure for cash, not revenue. At least, I hope that's the explanation. I'll give the CC a listen this weekend. In any case, it doesn't look like they're near profitabilty or credibility (if they really said $11 million in '00 revenue) any time soon.

Cheers, Tuck

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: tuck who wrote (13)3/17/2001 6:21:07 PM
From: JR
   of 33
 
Guidance of $11 million for 2001, not 2000. My apology for mistake. For 2002, they project breakeven or better.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: JR who wrote (14)6/14/2001 2:47:14 PM
From: tuck
   of 33
 
Not exactly a mover of stock price, but nice to know EBIO has quality chemists, a good prize these days.

>>BOTHELL, Wash., June 14 /PRNewswire/ -- Epoch Biosciences, Inc. (Nasdaq: EBIO - news), a leading provider of proprietary chemistries and reagents that enable genomic research, announced that four of its research scientists were selected as honorees of the 2001 American Chemical Society's (ACS) 56th Northwest Regional Industrial Innovation Award for their discovery of a new class of DNA probes for genetic analysis. The four honorees are: Dr. Igor V. Kutyavin, Dr. Sergei Lokhov, Dr. Eugene Lukhtanov and Dr. Michael Reed, according to William G. Gerber, M.D., chief executive officer of Epoch.

The ACS award recognizes individuals in the Northwest whose creative innovations have contributed to the commercial success of their company and the betterment of the community. The Epoch team discovered a class of DNA probes with attached minor groove binder ligands (MGB probes) that improve current methods of genetic analysis.

The award program, to be held at Seattle University tomorrow, will include a symposium where the honorees will make a technical presentation, as well as an awards ceremony and reception.

Gerber commented, ``We are extremely proud that four of our colleagues were selected by the American Chemical Society as recipients of their prestigious award. The scientific research conducted at Epoch is essential to the success of our business. It is exciting that their peers in the scientific community recognize the hard work and innovation of these individuals.''<<

snip

Cheers, Tuck

Share RecommendKeepReplyMark as Last ReadRead Replies (1)
Previous 10 Next 10