Enzo Biochem Reports Results for Third Fiscal Quarter.FARMINGDALE, N.Y. -- Enzo Biochem, Inc. (NYSE NYSE See: New York Stock Exchange :ENZ), a leading biotechnology company specializing in gene identification and genetic and immune regulation technologies for diagnostic and therapeutic applications, today reported operating results for the fiscal three and nine months ended April 30, 2006. "While we continue to make progress at Enzo Therapeutics and in the growth of our intellectual property base, price competition and continuing 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. expenses impacted operating results during the third quarter," said Barry Weiner, President. "Our focus remains on growing the Company, and broadening our operating scope with new products." The recent addition of new, highly experienced executives at Enzo Life Sciences and in the Finance Group underscores our commitment to our Company's broad-based strategic direction, as has the acquisition of a license for the production and marketing of single copy DNA probes DNA probe An agent that binds directly to a predefined sequence of nucleic acids. Mentioned in: Legionnaires' Disease DNA probe, n See deoxyribonucleic acid probes. that will facilitate our entry into the growing cytogenetics cytogenetics /cy·to·ge·net·ics/ (-je-net´iks) the branch of genetics devoted to cellular constituents concerned in heredity, i.e. chromosomes. market. We are pleased with the issuance during the quarter of a key new patent covering nucleic acid nucleic acid, any of a group of organic substances found in the chromosomes of living cells and viruses that play a central role in the storage and replication of hereditary information and in the expression of this information through protein synthesis. labeling molecules that are attached through the phosphate portion of the nucleic acid, either directly or indirectly. This patent issuance is another key component of our extensive intellectual property base in the area of genetic labeling. This technology can be applied to a range of commercial products, some of which are currently being used for both diagnostics and research. Molecular testing is a rapidly growing area of medicine, and it has applications in both predictive diagnostics and personalized medicine  The external links in this article or section may require cleanup to comply with Wikipedia's content policies. .
It is estimated that the current annual market for gene-based testing
ranges from $500 million to as high as $1 billion. Enzo Clinical Labs
continues not only to add new tests, but has recently broadened its
participation with third-party providers. Our strong balance sheet
continues to provide the wherewithal where·with·al n. The necessary means, especially financial means: didn't have the wherewithal to survive an economic downturn. conj. Wherewith. pron. Wherewith. for Enzo to realize its many opportunities. For the three months ended April 30, 2006, total revenues amounted to $9.6 million, compared with $11.0 million in the corresponding year-ago period, primarily reflecting recent price competition at Life Sciences in the genomics market and at the Clinical Lab where net revenue per accession declined due to the competitive reimbursement environment. Although research and development expenses declined 14%, to $1.9 million, selling, general and administrative expenses increased 13%, to $6.2 million. The latter was due principally to increased outlays for corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. charges and other professional fees and stock compensation expense as a result of adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R. In addition, our continued investment in our intellectual property portfolio contributed to a 24% increase in our legal expenses to $1.7 million. The net loss for the quarter amounted to $3.4 million, or ($0.11) per fully diluted share, compared with a year-ago net loss of $1.5 million, or ($0.05) per fully diluted share. For the nine months ended April 30, 2006, total revenues amounted to $29.9 million, compared with $32.5 million in the corresponding year-ago quarter. Net loss for the nine months totaled $11.2 million, or ($0.35) per fully diluted share, compared to a year-ago profit of $5.0 million, or $0.15 per fully diluted share, which included the initial gain of $14 million stemming from the Digene Corp. patent suit settlement. On April 30, 2006, working capital amounted to $87.3 million, and cash and cash equivalents totaled $75.9 million. At Enzo Clinical Labs for the third quarter of fiscal 2006, a competitive reimbursement environment chiefly accounted for the decline in revenues to $7.7 million, from $8.6 million a year ago. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. totaled $0.2 million, compared with $0.9 million. Heightened effectiveness in the processing and collection of third party claims resulted in a reduction in the provision for uncollectible accounts Uncollectible account An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. receivable, to $0.5 million, from approximately $1.0 million a year ago. Enzo Clinical Labs was also recently designated for use by participants in a major health care insurer serving the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. . At Enzo Life Sciences, lower unit pricing unit pricing n. The pricing of goods on the basis of cost per unit of measure. for products for the genomics market were reflected in reduced third quarter revenues to $1.9 million, from $2.4 million. In addition, the previously announced acquisition of a license from Children's Mercy Hospitals & Clinics for the production of their newly patented single copy DNA probes will enable Life Sciences to enter the growing cytogenetics market. These probes are capable of identifying the minutest strands of DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. , opening the door to more effective treatment of genetic diseases and other cancers. Their effectiveness is expected to be enhanced by combining the probes with Enzo's proprietary signal amplification technologies. The appointment of Carl W. Balezentis, Ph.D., a highly experienced executive in the industry, as President of Enzo Life Sciences, represents a major step in the Company's worldwide program to expand the subsidiary's market representation and results. Enzo also announced recently the appointment of Andrew R. Crescenzo, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , as Senior Vice President of Finance. The addition of Mr. Crescenzo is a move to broaden the Company's executive team. "With these recent hires and realigning of managerial responsibilities, we believe that we have created a much stronger organization, not only in terms of operations but in planning for the near term growth of Enzo Biochem," said Mr. Weiner. "With our focus on expanding the Company's strategic capabilities, these changes will be valuable as we pursue both organic and outside avenues of expansion." Enzo Therapeutics continues to expand both the breadth and depth of its therapeutic pipeline. Enrollment of patients in the Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II of both EGS EGS European Geophysical Society EGS European Graduate School EGS El Goonish Shive (webcomic) EGS Environmental Goods and Services EGS Employment Guarantee Scheme (UK) EGS EOS Ground System 21 and Alequel(TM), both treatments aimed at the management of Crohn's Disease Crohn's disease: see colitis. , continue to move forward. Site selection for expanding these trials is actively underway. The Phase I-II clinical trial of the Company's Stealth Vector HGTV HGTV Home and Garden Television 43(TM) genetic construct for HIV-1 is progressing, with patient enrollment anticipated shortly. The Company is awaiting the regulatory approval to initiate a Phase II clinical trial to study the effect of its EGS21 candidate drug on NASH Nash , Ogden 1902-1971. American writer known for his droll epigrammatic verse, much of which appeared in the New Yorker. Noun 1. Nash - United States writer noted for his droll epigrams (1902-1971) Ogden Nash (non-alcoholic steatohepatitis) and its associated metabolic syndrome metabolic syndrome n. See syndrome X. Metabolic syndrome A group of risk factors for heart disease, diabetes, and stroke. . A clinical trial to determine the efficacy of B27PD, Enzo's candidate drug for the treatment of autoimmune uveitis uveitis Inflammation of the uvea, the middle coat of the eyeball. Anterior uveitis, involving the iris or ciliary body (containing the muscle that adjusts the lens) or both, can lead to glaucoma and blindness. is planned for later this year. Additionally, animal studies are continuing at multiple sites for the evaluation of candidate compounds for the treatment of bone disorders. About Enzo Enzo Biochem is engaged in the research, development and manufacture of innovative health care products based on molecular biology molecular biology, scientific study of the molecular basis of life processes, including cellular respiration, excretion, and reproduction. The term molecular biology was coined in 1938 by Warren Weaver, then director of the natural sciences program at the Rockefeller and genetic engineering techniques, and in providing diagnostic services diagnostic services, n.pl the imaging and laboratory capabilities available for determining the cause of an illness. to the medical community. The Company's proprietary labeling and detection products for gene sequencing and genetic analysis are sold to the life sciences market throughout the world. The Company's therapeutic division is in various stages of clinical evaluation clinical evaluation Medtalk An evaluation of whether a Pt has symptoms of a disease, is responding to treatment, or is having adverse reactions to therapy of its proprietary gene medicine for HIV-1 infection and its proprietary immune regulation medicines for hepatitis, uveitis, and for Crohn's Disease. Pre-clinical research is being conducted on several candidate compounds aimed at producing new mineral and organic bone, including technology that could provide therapy for osteoporosis and fractures, among other applications. The Company also holds a patent covering a method and materials for correcting point mutations point mutation n. A mutation that involves a single nucleotide and may consist of loss of a nucleotide, substitution of one nucleotide for another, or the insertion of an additional nucleotide. or small insertions or deletions of genetic material that would allow for editing and correcting certain abnormalities in genes. The Company owns or licenses over 200 patents worldwide. For more information visit our website www.enzo.com. Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this press release. An informational call conducted by Enzo Biochem, Inc. management will take place on Monday, June 12, 2006 at 8:30 a.m. ET. It can be accessed by dialing 1-877-692-2086. International callers can dial 1-973-582-2734. Please reference PIN number 7487781. Interested parties may also listen over the Internet at www.investorcalendar.com. To listen to the live call on the Internet, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available approximately two hours after the end of the live call, through midnight (ET) on June 26, 2006. The replay of the conference call can be accessed by dialing 1-877-519-4471, and, when prompted, use PIN number 7487781. International callers can dial 1-973-341-3080, using the same PIN number.
ENZO BIOCHEM, INC.
SELECTED STATEMENT OF OPERATIONS DATA
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
NINE MONTHS ENDED THREE MONTHS ENDED
APRIL 30, APRIL 30,
2006 2005 2006 2005
------------ ------------ ---------- ----------
TOTAL REVENUES $29,910 $32,535 $9,630 $11,000
------------ ------------ ---------- ----------
(LOSS) INCOME BEFORE
INCOME TAXES ($12,054) $8,675 ($3,793) ($2,553)
BENEFIT (PROVISION)
FOR INCOME TAXES $896 ($3,680) $357 $1,056
------------ ------------ ---------- ----------
NET (LOSS) INCOME ($11,158) $4,995 ($3,436) ($1,497)
------------ ------------ ---------- ----------
BASIC (LOSS) INCOME
PER SHARE ($0.35) $0.16 ($0.11) ($0.05)
DILUTED (LOSS) INCOME
PER SHARE ($0.35) $0.15 ($0.11) ($0.05)
COMMON SHARE-BASIC 32,201 32,082 32,245 32,122
COMMON SHARE-DILUTED 32,201 32,745 32,245 32,122
SELECTED BALANCE SHEET DATA
April 30, July 31,
2006 2005
(IN THOUSANDS)(IN THOUSANDS)
(Unaudited)
------------ ------------
CASH AND MARKETABLE
SECURITIES $75,912 $83,695
WORKING CAPITAL $87,309 $97,012
STOCKHOLDERS' EQUITY $99,384 $108,267
TOTAL ASSETS $106,357 $116,466
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