Celera Reports Second Quarter Revenues of $35.0 Million.Business Editors & Health/Medical Writers BIOWIRE2K ROCKVILLE Rockville, city (1990 pop. 44,835), seat of Montgomery co., W central Md., a NW suburb of Washington, D.C.; settled c.1760s, inc. as a city 1860. It has several scientific research and technology laboratories that focus on the aerospace, electronics, nuclear energy, , Md.--(BW HealthWire)--Jan. 23, 2002 Celera Genomics Group (NYSE NYSE See: New York Stock Exchange : CRA See Community Reinvestment Act. ), an Applera Applera Corporation of Norwalk, Connecticut, at #874 on the 2007 Fortune 1000 list, is one of the largest international biotechnology companies based in the United States. It is the successor company to what was the Life Sciences Division of Perkin-Elmer Corporation. Corporation business, today reported results for its second quarter of fiscal 2002 ended December December: see month. 31, 2001. All per share amounts refer to per share of Applera Corporation-Celera Genomics Group Common Stock. For the quarter, Celera reported revenues of $35.0 million, up from $20.3 million for the same quarter in fiscal 2001. The increase in revenues resulted principally from new subscription agreements with commercial and academic customers and from contract sequencing and other services. Included in the quarter's results is a $99.0 million non-cash, non-recurring charge for acquired in-process research & development related to the acquisition of Axys Pharmaceuticals. The Group's net loss before the non-recurring charge was $18.9 million, or $0.29 per share, compared with $29.7 million, or $0.49 per share, for the same quarter in fiscal 2001. The lower net loss was attributable primarily to continued operating growth in the online business, the completion of R&D related genome genome: see genetics. genome all the genetic content contained within an organism. An organism's genome is made up of molecules of deoxyribonucleic acid (DNA) that form long strands that are tightly wound into chromosomes, which are found in the sequencing programs and lower amortization of goodwill. Continued investment in the Celera Diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler joint venture with Applied Biosystems Applied Biosystems, Inc. (formerly NASDAQ: ABIO) is the original name of a pioneer biotechnology company founded in 1981 in Foster City, California, among the Silicon Valley cities of the southern San Francisco Bay Area. and lower interest income partially offset these factors. The reported net loss was $117.9 million, or $1.82 per share, including the special charge. At the end of December 2001, the Group had cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of approximately $941 million. R&D expenditures for the quarter were $30.6 million, in comparison to $42.3 million in the same period last year. R&D expenses associated with therapeutic discovery programs continued to increase in comparison to the prior year. For the quarter, these increases were more than offset by lower R&D expenses associated with the shotgun shotgun: see small arms. shotgun Smoothbore shoulder firearm designed to fire a number of pellets, or shot, that cover a large target area after they leave the muzzle. It is used mainly against small game such as birds. phase of certain whole genome sequencing programs. For the six months ended December 31, 2001, Celera reported revenues of $62.3 million, a 61 percent increase over the $38.6 million in revenues for the same period last year. The net loss before the special charge for this period was $34.5 million, or $0.55 per share, compared to a loss of $55.4 million, or $0.92 per share, for the comparable period in fiscal 2001. Including the special charge, the reported net loss for this period was $133.5 million, or $2.11 per share. "Celera continued to add to its therapeutic discovery capability through internal expansion, the Axys acquisition and new technology collaborations. We are pleased with the progress in the therapeutic collaborations with Merck Merck may refer to:
Sanofi-Aventis was formed in 2004 when Sanofi-Synthélabo purchased Aventis. ," stated Tony L. White, Applera's Chief Executive Officer. "The online information business continued to expand both its customer base and its product content and functionality, driving large year-over-year increases in revenues and offsetting some of our discovery R&D costs." Mr. White continued, "In the two months since the Axys acquisition closed, we have made significant progress in the integration of its talented staff and its portfolio of pre-clinical therapeutic programs. Now we are combining the growing output from Celera's proteomics pro·te·o·mics n. The analysis of the expression, localization, functions, and interactions of the proteins produced by the genes of an organism. platform with our recently acquired expertise in protease inhibitors Protease Inhibitors Definition A protease inhibitor is a type of drug that cripples the enzyme protease. An enzyme is a substance that triggers chemical reactions in the body. and small molecule discovery. We plan to apply high throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. methods for the validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. of potential therapeutic targets and the identification of potential new drugs in parallel." Recent Developments Celera has reported a number of developments in its businesses over the last three months. Drug Discovery - The acquisition of Axys closed in November 2001 and scientific staff moved into a new medicinal chemistry building on its South San Francisco campus. - Merck & Co., Inc. extended its osteoporosis drug discovery collaboration with Celera for a sixth year until November 2002. - Celera announced an additional research milestone payment from Aventis Pharma, the pharmaceutical company of Aventis, as part of the Cathepsin S inhibitor collaboration between the companies. This milestone marked the selection of Celera Cathepsin S inhibitor compounds as Early Development Candidates (EDC) for inflammation and autoimmune diseases. - Celera entered into two technology collaborations intended to support therapeutic discovery via structural proteomics and chemical annotation: - Celera and Syrrx, Inc. plan to collaborate in the determination of three-dimensional structures of proteins identified by Celera as potential drug targets. This collaboration may result in the more efficient discovery of small molecule drugs to treat human diseases. - Celera and Graffinity Pharmaceuticals of Heidelberg, Germany, plan to utilize Graffinity's unique chemical microarrays of drug fragments to chemically annotate new proteins discovered using Celera's proprietary proteomics platform. This approach is expected to contribute to the parallel validation of targets and identification of therapeutic candidates. Online - The online business announced three new commercial customers, Otsuka Pharmaceuticals, Serono Serono is a biotechnology company headquartered in Geneva, Switzerland. The company was founded in 1906 in Italy. A key step in its development was the discovery of a method of extracting urinary gonadotropins by Dr Piero Donini allowing the company to become a leader in the S.A., and Oxagen, bringing the total to 19. Celera also added 30 new academic and institutional organizations as subscribers to the Celera Discovery SystemTM (CDS)--Celera's proprietary bioinformatics Using computers in biological research to analyze or predict the composition of molecules (nucleic acids, proteins, etc.) and model biologic systems. Bioinformatics is most prominent in the Human Genome Project, which has recorded the three billion chemical base pairs that make up the platform of database content, analysis and visualization Using the computer to convert data into picture form. The most basic visualization is that of turning transaction data and summary information into charts and graphs. Visualization is used in computer-aided design (CAD) to render screen images into 3D models that can be viewed from all tools--increasing the total number of academic and institutional subscribers to 180. - Celera announced two new content collaborations. John Wiley John Wiley may refer to:
Sons, Inc. agreed to develop links between cited article references, abstracts, and full-text articles available on the Wiley Wiley may refer to:
working with Inpharmatica to develop and commercialize a new version of Inpharmatica's Biopendium(TM) target and drug discovery platform, with the objective of creating a unique resource of integrated sequence, structural and functional information. Other - This week Celera announced Dr. J Noun 1. Dr. J - United States basketball forward (born in 1950) Erving, Julius Erving, Julius Winfield Erving . Craig Venter  The introduction of this article is too short.To comply with Wikipedia's lead section guidelines, it should be expanded. is stepping down as the Group's President. Dr. Venter venter /ven·ter/ (ven´ter) pl. ven´tres [L.] 1. a fleshy contractile part of a muscle. 2. abdomen. 3. a hollowed part or cavity. ven·ter n. will continue his affiliation with Celera as Chair of its Scientific Advisory Board. - Celera announced a strategic alliance in agriculture-genomics with Paradigm Genetics genetics, scientific study of the mechanism of heredity. While Gregor Mendel first presented his findings on the statistical laws governing the transmission of certain traits from generation to generation in 1856, it was not until the discovery and detailed study of , Inc. Paradigm acquired Celera's AgGen plant genomics and genotyping Genotyping refers to the process of determining the genotype of an individual with a biological assay. Current methods of doing this include PCR, DNA sequencing, and hybridization to DNA microarrays or beads. business and became the exclusive marketing partner to provide Celera services to the plant-based agriculture industries. Outlook - Revenue: Celera continues to expect a 40 to 50 percent increase in revenue for fiscal 2002 in comparison to the prior year. During the recently completed quarter, Celera allocated a larger portion of its sequencing capacity toward revenue generating customer commitments, freeing up additional sequencing capacity in the balance of fiscal 2002 for the Applera SNP SNP Scottish National Party Noun 1. SNP - (genetics) genetic variation in a DNA sequence that occurs when a single nucleotide in a genome is altered; SNPs are usually considered to be point mutations that have been evolutionarily discovery program. This shifted several million dollars of revenue to the second quarter from the balance of fiscal 2002. - R&D expenses: The Group has revised its outlook for fiscal 2002 R&D expenses to the range of $140 to $150 million. This decrease reflects reductions within programs outside of therapeutic discovery. R&D expenses are expected to increase over the balance of the fiscal year as a result of: - Increased spending associated with the Applera genomics initiative; - Higher proteomics output; and - Continued investment in pre-clinical therapeutic programs from Axys, and new therapeutic programs. - Research, development, and engineering expenses include the Celera component of Applera's anticipated $75 million fiscal 2002 investment in the Applera genomics initiative involving Applied Biosystems and Celera Diagnostics. The initiative has recently been expanded to include gene validation and expression, which the Company believes will require approximately an additional $25 million investment in fiscal 2003. - SG&A expenses: The Group expects fiscal 2002 SG&A expenses in a range similar to the prior year's expenses of $58.3 million. - Celera Diagnostics: Fiscal 2002 pre-tax losses related to the Celera Diagnostics joint venture are expected to be approximately $55 to $65 million. - Cash Burn: The most likely range for Celera's fiscal 2002 net cash use remains between $155 and $170 million. Most of the anticipated benefit of lower R&D expenses should be offset by retirement of debt assumed from Axys. The comments in the Outlook Section reflect management's current outlook. The Company does not have any current intention to update this outlook and plans to revisit re·vis·it tr.v. re·vis·it·ed, re·vis·it·ing, re·vis·its To visit again. n. A second or repeated visit. re the Group's outlook only once each quarter when financial results are announced. Conference Call & Webcast A conference call with Applera Corporation and Celera Genomics executives will be held January 24, at 10:00 a.m. (ET) with investors and media to discuss these results and management's current financial outlook for the Company. Investors, securities analysts, and representatives of the media calling from the U.S. or Canada who would like to participate should dial 800.598.1707 (code "applera") between 9:45 a.m. and 10:00 a.m. International participants should dial (+1) 706.634.4992. This conference call will also be webcast. Interested parties who wish to listen to the webcast should visit either www.applera.com and go to the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the web site, or www.celera.com and go to the Investor section. An audio replay of the conference call is expected to be available later tomorrow for 10 days. Callers from the U.S. or Canada should dial 800.642.1687. International callers should dial (+1) 706.645.9291. The conference ID number is 2832090. About Applera Corporation and Celera Genomics Applera Corporation comprises two operating groups. The Celera Genomics Group, headquartered in Rockville, MD, is engaged principally in integrating advanced technologies to create therapeutic discovery and development capabilities for internal use and for its customers and collaborators. Celera's businesses are its online information business and its therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. discovery business. The online information business is a leading provider of information based on the human genome The human genome is the genome of Homo sapiens, which is composed of 24 distinct pairs of chromosomes (22 autosomal + X + Y) with a total of approximately 3 billion DNA base pairs containing an estimated 20,000–25,000 genes. and other biological and medical information. Through the therapeutic discovery business, Celera intends to leverage its genomic genomic pertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. and proteomic capabilities to identify drug targets and diagnostic marker marker /mark·er/ (mahrk´er) something that identifies or that is used to identify. tumor marker candidates, and to discover novel therapeutic candidates. The Applied Biosystems Group (NYSE:ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother. (Application Binary Interface) A specification for a specific hardware platform combined with the operating system. ) develops and markets instrument-based systems, reagents, software, and contract services to the life science industry and research community. Applied Biosystems is headquartered in Foster City, CA, and reported sales of $1.6 billion during fiscal 2001. Celera Diagnostics, a joint venture between Applied Biosystems and Celera Genomics, is focused on discovery, development, and commercialization of novel diagnostics tests. Information about Applera Corporation, including reports and other information filed by the company with the Securities and Exchange Commission, is available on the World Wide Web at www.applera.com, or by telephoning 800.762.6923. Information about Celera is available on the World Wide Web at www.celera.com. Certain statements in this press release, including the Outlook section, are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "intend," "anticipate," "should," "planned," "estimated," and "potential," among others. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are based on Applera Corporation's current expectations. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for such forward-looking statements. In order to comply with the terms of the safe harbor, Applera Corporation notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, and results of Celera Genomics' businesses include but are not limited to (1) expected operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. ; (2) dependence on the continued assembly and annotation 1. (programming, compiler) annotation - Extra information associated with a particular point in a document or program. Annotations may be added either by a compiler or by the programmer. of the human and other genomes; (3) uncertainty of revenue growth; (4) unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy use of genomics information to develop or commercialize products; (5) intense competition in the industry in which Celera Genomics operates; (6) dependence on customers in, and the risks that affect, the pharmaceutical and biotechnology industries; (7) reliance on its strategic relationship with the Applied Biosystems Group; (8) potential product liability claims; (9) potential liabilities related to use of hazardous materials; (10) lengthy sales cycles; (11) dependence on the unique expertise of its scientific and management staff; (12) uncertainty and availability of patent, copyright, and intellectual property protection and the ability to protect trade secrets, and the risk that Celera Genomics may become the subject of infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. claims; (13) dependence on computer hardware, software, and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the applications; (14) the potential adverse effect on Celera Genomics' intellectual property protection and the value of its products and services due to public disclosure of genomics sequence data; (15) Celera Genomics' need for access to biological materials; (16) legal, ethical, and social issues which could affect demand for products; (17) the possibility of disruptions which could be caused by rapid growth of the business; (18) potential for government regulation of Celera Genomics' or its customers' products and services; (19) risks associated with future acquisitions, including that they may be unsuccessful; (20) uncertainty of the outcome of existing stockholder litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; (21) the lengthy and uncertain development cycle for therapeutic and diagnostic products, and Celera Genomics' unproven ability to develop or commercialize such products; (22) the risk that the Axys business will not be integrated successfully into Celera Genomics; (23) the risk that the collaborations established by Axys will not be successful and that clinical trials will not proceed as anticipated or may not be successful; (24) Celera Diagnostics' unproven ability to discover, develop, and commercialize novel diagnostic tests and the uncertainty that Celera Diagnostics will become profitable; and (25) other factors that might be described from time to time in Applera Corporation's filings with the Securities and Exchange Commission. Copyright(c)2002. Applera Corporation. All Rights Reserved. Applied Biosystems, Celera, Celera Diagnostics and Celera Genomics are registered trademarks of Applera Corporation or its subsidiaries in the U.S. and certain other countries.
APPLERA CORPORATION
CELERA GENOMICS GROUP
COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended Six months ended
December 31, December 31,
2001 2000 2001 2000
------- ------- ------- -------
Net revenues $ 35.0 $ 20.3 $ 62.3 $ 38.6
Costs and expenses
Cost of sales 18.0 10.4 29.9 16.2
Research and
development 30.6 42.3 58.4 83.3
Selling, general
and administrative 13.9 14.4 26.5 27.4
Amortization of
goodwill and other
intangibles 1.6 11.0 2.1 22.1
Acquired research
and development 99.0 99.0
------- ------- ------- -------
Operating loss (128.1) (57.8) (153.6) (110.4)
Interest income, net 8.5 17.1 19.4 34.5
Other expense, net (1.0) (1.7)
Loss from
joint venture (8.5) (17.9)
------- ------- ------- -------
Loss before
income taxes (129.1) (40.7) (153.8) (75.9)
Benefit for
income taxes 11.2 11.0 20.3 20.5
------- ------- ------- -------
Net loss $(117.9) $ (29.7) $(133.5) $ (55.4)
======= ======= ======= =======
Net loss per share
Basic and diluted $ (1.82) $ (0.49) $ (2.11) $ (0.92)
Average common
shares outstanding
Basic and
diluted 64,693,000 60,645,000 63,258,000 60,182,000
APPLERA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended Six months ended
December 31, December 31,
2001 2000 2001 2000
------- ------- ------- -------
Net revenues $ 437.2 $ 413.3 $ 825.0 $ 780.7
Cost of sales 206.3 199.7 392.8 369.0
------- ------- ------- -------
Gross margin 230.9 213.6 432.2 411.7
Selling, general
and administrative 109.3 109.2 216.4 212.2
Research,
development
and engineering 88.5 75.7 173.0 153.6
Amortization of
goodwill and
other intangibles 1.6 11.0 2.1 22.1
Acquired research
and development 101.2 101.2
------- ------- ------- -------
Operating income
(loss) (69.7) 17.7 (60.5) 23.8
Gain on investments 3.0 15.0
Interest income, net 11.6 21.0 25.7 42.5
Other expense, net (0.2) (1.7) (3.1)
------- ------- ------- -------
Income (loss) before
income taxes (58.1) 41.5 (36.5) 78.2
Provision for
income taxes 3.4 14.0 8.0 26.3
------- ------- ------- -------
Net income (loss) $ (61.5) $ 27.5 $ (44.5) $ 51.9
======= ======= ======= =======
Applied Biosystems Group
Net income $ 49.0 $ 58.0 $ 81.2 $ 107.1
Basic per share $ 0.23 $ 0.28 $ 0.38 $ 0.51
Diluted per share $ 0.23 $ 0.26 $ 0.38 $ 0.48
Celera Genomics Group
Net loss $(117.9) $ (29.7) $ (133.5) $ (55.4)
Basic and diluted
per share $ (1.82) $ (0.49) $ (2.11) $ (0.92)
--30--jgm/ny* sds
CONTACT: Celera
Media:
Heather Kowalski, 240/453-3343
heather.kowalski@celera.com
or
Investors:
Rob Bennett, 240/453-3990
robert.bennett@celera.com
or
European Media and Investors:
David Speechly, (UK) (+44)207-868-1642
speechdp@eur.appliedbiosystems.com
KEYWORD: MARYLAND
INDUSTRY KEYWORD: BIOTECHNOLOGY MEDICAL CONFERENCE CALLS
EARNINGS
SOURCE: Celera Genomics
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