Ciphergen to Host Conference Call on Friday, August 24 at 9:00 a.m.
Eastern FREMONT, Calif., Aug. 13 /PRNewswire-FirstCall/ --
Ciphergen Biosystems, Inc. (NASDAQ:CIPH) today announced financial
results for its second quarter ended June 30, 2007 and provided an
update on business progress. "We continue to make progress
advancing our clinical development programs and moving our
high-value diagnostic tests forward to commercialization," said
Gail S. Page, President and Chief Executive Officer of Ciphergen.
"We are collaborating closely with The Ohio State University
Research Foundation to launch our test for thrombotic
thrombocytopenic purpura (TTP). Quest and we are working to
validate our test to detect peripheral arterial disease (PAD).
Enrollment in our ovarian cancer clinical trial is proceeding on
schedule and we continue to expect to submit the test for clearance
with the U.S. Food and Drug Administration (FDA) by the end of
2007." "Later this month we expect to change the name of the
Company to Vermillion, Inc., and on August 27 we plan to begin
trading under our new Nasdaq stock symbol: VRML. This achievement
represents the next step in our transformation to become a leading
provider of molecular diagnostic products. Vermillion signifies
health, life, passion and our commitment to improving patient
health. We believe this provides an excellent new identity for our
Company," continued Ms. Page. In conjunction with the name change,
the company will host a conference call on Friday, August 24 at
9:00 a.m. Eastern Time to discuss business progress. Second 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
no revenue in the second quarter of 2007 compared to $5.3 million
in the second quarter of 2006. Total operating expenses for the
second quarter of 2007 were $5.9 million compared to $9.5 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 tools
business. Included in the second quarter of 2007 general and
administrative expense was $600,000 of costs associated with the
Health Discovery Corporation license agreement. Also, there was a
one time charge of $382,000 related to a reduction in an accounts
payable amount Bio-Rad owed to Ciphergen. The net loss for the
second quarter of 2007 was $6.8 million compared to $7.7 million
for the same period in 2006. Basic and diluted net loss per share
for the second quarter of 2007 was $0.17 per share based on 39.3
million shares outstanding compared to a basic and diluted net loss
per share of $0.21 per share for the same period in 2006 based on
36.0 million shares outstanding. At June 30, 2007, the Company's
cash and investments were $9.6 million compared to $13.6 million,
at March 31, 2007 and $17.7 million at December 31, 2006. Net cash
used in operating activities in the second quarter of 2007 was $5.3
million and $11 million for the first six months of 2007. During
the second quarter of 2007, Ciphergen also drew down $1.25 million
of its remaining balance on its loan facility with Quest
Diagnostics, which indebtedness is forgivable upon accomplishment
of certain milestones. Recent Accomplishments Recent
accomplishments included the following: -- Continued enrollment of
patients at 30 medical centers in a clinical trial to evaluate its
ovarian cancer triage test to differentiate women with ovarian
cancer from women with benign pelvic masses. -- Seven abstracts
were accepted for presentation at the European Society for
Gynecologic Oncology meeting in Berlin Germany, October 28 to
November 1. These presentations describe progress in Ciphergen's
ovarian cancer diagnostic program including work validating its
test that aids in discriminating between benign and malignant
ovarian tumors, as well as discovery of novel markers that support
diagnostics for women at high risk of ovarian cancer, and imaging
biomarkers. -- 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. -- Received a
notice of intent from the United States Patent and Trademark Office
to issue a Reexamination Certificate of U.S. patent no. 6,734,022,
which is directed to a fundamental process of SELDI mass
spectrometry. When the patent reissues, Bio-Rad Laboratories is to
pay Ciphergen $2.0 million pursuant to the terms of the Asset
Purchase Agreement entered into in connection with the sale of
Ciphergen's instrumentation business to Bio-Rad. -- Entered into a
license and settlement agreement with Health Discovery Corporation
("HDC") pursuant to which it licensed more than 25 patents covering
HDC's support vector machine technology for use with SELDI
technology. -- European authorities issued EU Patent No. 1 354 203,
entitled "Biomarkers of Transitional Cell Carcinoma of the
Bladder," for aiding in bladder cancer diagnosis. The patent
describes discoveries, which were made under a collaborative
agreement between Ciphergen and Eastern Virginia Medical School,
using mass spectrometry to detect certain protein biomarkers that
are present in patients with bladder cancer. Ciphergen retains
exclusive rights to these discoveries for diagnostic development.
Conference Call Details for August 24, 2007 The company will host a
conference call on Friday, August 24, 2007, at 9:00 a.m. Eastern
Time to provide an update on business developments and discuss the
company's new name. 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 21346466. 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 Sept 3, 2007 and may be accessed by dialing (800)
633-8625 from the United States and Canada or (+1 402) 977-9141
internationally. The replay passcode is 21346466 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,
expected decreases in operating expenses and projected cash usage.
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 and Shares in
Thousands, Except per share data) Three Months Ended Six Months
Ended June 30 June 30 2007 2006 2007 2006 Revenue $- $5,273 $21
$12,337 Cost of Revenue - 2,947 15 6,351 Gross Profit - 2,326 6
5,986 Operating expenses: Research and development 2,204 2,874
4,115 5,866 Sales and marketing 368 3,945 924 7,448 General and
administrative 3,339 2,729 6,536 5,008 Total operating expenses
5,911 9,548 11,575 18,322 Loss on sale of instrument business (382)
- (382) - Loss from operations (6,293) (7,222) (11,951) (12,336)
Interest and other income (expense), net (537) (457) (920) (693)
Loss from continuing operations before income taxes (6,830) (7,679)
(12,871) (13,029) Income tax provision (benefit) from continuing
operations (4) 56 2 170 Net loss from continuing operations (6,826)
(7,735) (12,873) (13,199) Net loss $(6,826) $(7,735) $(12,873)
$(13,199) Basic and diliuted net loss per share $(0.17) $(0.21)
$(0.33) $(0.37) Shares used in computing basic and diluted net loss
per share 39,256 36,048 39,245 36,024 Ciphergen Biosystems, Inc.
and subsidiaries Unaudited Condensed Consolidated Balance Sheets
(Dollars in Thousands) June 30 December 31 2007 2006 (1) ASSETS
Current assets: Cash and cash equivalents $9,553 $17,711 Accounts
receivable, net 19 29 Prepaid expenses and other current assets
1,003 2,300 Total current assets 10,575 20,040 Property, plant and
equipment, net 1,889 2,260 Other long term assets 691 716 Total
assets $13,155 $23,016 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $2,620 $2,401 Accrued liabilities
3,742 4,600 Current portion of deferred revenue 31 45 Total current
liabilities 6,393 7,046 Long term debt owed to related party 10,000
7,083 Convertible senior notes, net of discount 18,553 18,428 Other
long term liabilities 461 360 Total liabilities 35,407 32,917
Stockholders' deficit: Common stock 39 39 Additional paid in
capital 208,482 207,991 Accumulated other comprehensive loss (40)
(71) Accumulated deficit (230,733) (217,860) Total stockholders'
deficit (22,252) (9,901) Total liabilities and stockholders'
deficit $13,155 $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 of
Ciphergen Biosystems, Inc., +1-510-505-2233; or Daryl Messinger of
WeissComm Partners, +1-415-946-1062, for Ciphergen Web site:
http://www.ciphergen.com/
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