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Biotech / Medical : EBIO: Epoch Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: JR who wrote (12)3/9/2001 4:03:46 PM
From: tuck  Read Replies (1) | Respond to of 33

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.<<


>>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