Integrated Genetics Reports First Quarter 1995 Results.FRAMINGHAM, Mass.--(BUSINESS WIRE)--April 26, 1995--IG Laboratories Inc. (Nasdaq:IGLI) today reported financial results for the first quarter of 1995. Revenues for the quarter were $11.1 million, a decrease of 8 percent from revenues of $12 million reported for the first quarter of 1994. Sales for the first quarter of last year were exceptionally high because of a major European bone marrow bone marrow, soft tissue filling the spongy interiors of animal bones. Red marrow is the principal organ that forms blood cells in mammals, including humans (see blood). In children, the bones contain only red marrow. drive that provided extraordinary revenues to the company's identity testing unit. Despite the decline in sales, however, the gross margin increased to 31 percent in the first quarter of 1995 from 27 percent in last year's first quarter. 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. for the 1995 first quarter, before amortization of intangibles, totaled $771,000, compared to operating losses of $182,000 for the same period last year. The net loss for the quarter was $1.2 million, compared to $484,000 for last year's first quarter. The combined genetic diagnostic services diagnostic services, n.pl the imaging and laboratory capabilities available for determining the cause of an illness. revenue of Integrated Genetics and Genzyme Corp. (Nasdaq:GENZ), whose genetic services business is managed by Integrated Genetics, was $12.4 million for the quarter vs. $13.9 million for the first quarter of 1994. "This was a solid quarter with significant revenue growth over the two prior quarters and exciting scientific accomplishment," said Elliott D. Hillback Jr., president and chief executive officer of Integrated Genetics. "We are continuing to expand our operational capabilities and exert our leadership in the genetic diagnostics market." During the quarter, the company announced that, in collaboration with the Johns Hopkins Noun 1. Johns Hopkins - United States financier and philanthropist who left money to found the university and hospital that bear his name in Baltimore (1795-1873) Hopkins 2. Medical Institutions, it had fully identified the gene that causes adult polycystic kidney disease Polycystic Kidney Disease Definition Polycystic kidney disease (PKD) is one of the most common of all life-threatening human genetic disorders. (PKD Noun 1. PKD - kidney disease characterized by enlarged kidneys containing many cysts; often leads to kidney failure polycystic kidney disease kidney disease, nephropathy, renal disorder, nephrosis - a disease affecting the kidneys 1). This research, published in the April issue of the journal Human Molecular Genetics Human Molecular Genetics is a semimonthly scientific journal published by The Oxford University Press. See: Official Site , "demonstrates our expertise in sequencing and understanding a complex gene such as PKD1," Hillback said. "These skills, coupled with our proven strengths in gene characterization and diagnostic test development and implementation, position us well to play a key role in the emerging field of gene-based medicine," he said. The term "gene-based medicine" refers to the evolution toward diagnosing disease and targeting therapies by genetic profile rather than physical signs and symptoms alone. Other major developments during the quarter: - In February, Genzyme Corp., which owns 69 percent of the outstanding common stock of IG Laboratories, made a proposal to acquire the remaining shares. The proposal is under review by a committee of the independent directors of IG Laboratories. - Integrated Genetics signed a contract with Private Healthcare Systems (PHCS PHCS Private Healthcare Systems PHCS Primary Health Care Service PHCS Preventive Health Care System PHCS Princeton Health Care System (Princeton, New Jersey) PHCS Senior Chief Photographer's Mate (Naval Rating) ), one of the nation's largest preferred provider organizations pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. , covering 5.4 million people. "Our direct marketing efforts to more than 10,000 PHCS ob-gyn's have already shown an impressive yield in new business," Hillback said. "This and a number of other agreements signed in the first quarter show that we are achieving success in our continuing efforts to position genetic diagnostic services effectively in the growing managed health care market." - The company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Genetic Design Inc. (GDI (Graphics Device Interface) The traditional programming interface (API) for output in Windows. When an application needs to display or print, it makes a call to a GDI function and sends it the parameters for the object that must be created. ), started receiving tissue samples under two previously announced contracts. Under one contract GDI is providing tissue typing Tissue typing A procedure involving a test or a series of tests to determine the compatibility of tissues from a prospective donor and a recipient prior to transplantation. services to the National Marrow Donor Program The National Marrow Donor Program (NMDP) is a nonprofit organization based in Minneapolis, Minnesota, that operates the federally funded registry of volunteer hematopoietic cell donors in the United States. These potential donors, numbering more than 6. , the nation's largest registry of potential bone marrow donors. Under the other contract GDI is providing DNA testing DNA testing Analysis of DNA (the genetic component of cells) in order to determine changes in genes that may indicate a specific disorder. Mentioned in: Acoustic Neuroma, Retinoblastoma, Von Willebrand Disease services to the State of Alabama for a forensic database of convicted felons. Integrated Genetics applies advanced biotechnology to develop and provide high-quality, sophisticated genetic testing Genetic Testing Definition A genetic test examines the genetic information contained inside a person's cells, called DNA, to determine if that person has or will develop a certain disease or could pass a disease to his or her offspring. services to physicians, hospitals, clinical laboratories, university medical centers, and managed health care organizations throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and internationally. In addition to its Framingham, Mass., headquarters, the company operates laboratories and client service centers in 10 locations in the United States. Financial tables follow.
IG Laboratories Inc.
Statements of Operations
(Amounts in thousands, except per share amounts)
Three Months Ended March 31,
1995 1994
Revenues:
Service revenue $9,008 $9,551
Research and development revenues:
Related party 981 1,102
Other 98 68
Management fee revenue 1,034 1,312
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11,121 12,033
Costs and expenses:
Cost of service revenue 6,255 6,927
Research and development expenses:
Related party 767 874
Other 551 445
Sales, general and administrative 4,319 3,969
Amortization of intangible assets 288 288
Operating income (loss) (1,059) (470)
Interest income (expense), net (99) (17)
Other income (expense) (3) 3
Net income (loss) (1,161) (484)
Loss per common share (0.12) (0.05)
Weighted average number of shares
outstanding 9,493 9,423
IG Laboratories Inc.
Balance Sheets
(in thousands)
March 31, Dec. 31,
1995 1994
Cash, cash equivalents and short-term investments 890 1,879 Other current assets 10,328 9,468 Property and equipment, net 7,240 7,245 Intangible assets, net 802 1,090 Other assets 461 163 Total assets 19,721 19,845 Current liabilities 6,323 7,353 Note Payable to Related Party 7,000 5,000 Long-term liabilities 129 134 Stockholders' equity 6,269 7,358 Total liabilities and stockholders' equity 19,721 19,845 CONTACT: Integrated Genetics, Framingham Judith King (Media), 508/872-8400 x2513 Stephen Push (Investor contact), 617/252-7570 |
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