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 SACRAMENTO, Calif., Nov. 18 /PRNewswire/ -- Alamar Biosciences Inc. (NASDAQ: ALMR), a research and development firm specializing in diagnostic products, today reported financial results for the fiscal year ended Sept. 30, 1993.
 For the 1993 fiscal year, Alamar reported revenues of $418,680, compared with revenues of $15,850 for the 1992 fiscal year. Revenues consisted of sales to the biomedical and research markets, and of revenues from Alamar's development agreement with Pfizer Inc. for the development of an antifungal susceptibility test for yeast infections. If developed, this product will be marketed under the Alamar name. Sales to the biomedical market were comprised of test panels and the READar(TM), Alamar's semi-automated reading instrument used to interpret test results. Sales to research laboratories consisted primarily of alamarBlue(TM), the company's indicator dye, as well as READar(TM).
 Alamar reported a net loss of $3,144,400, or one dollar per share, for fiscal 1993, compared with a net loss of $3,184,000, or $1.43 per share, for fiscal 1992. There were 3,131,210 weighted average shares outstanding for the 1993 fiscal year.
 Mark L. Santor, Alamar's chief financial officer, said, "We continue to focus most of the company's efforts on marketing our product line, which is virtually complete since the FDA clearance of our gram negative bacterial identification test in October." Products are being sold domestically through a U.S. direct sales force and internationally through a network of distributors.
 Santor said the decline in R&D spending from $1.8 million in 1992 to $682,500 in 1993 was due to movement out of the product development stage. "Most of our costs were considered R&D expenses due to the start- up nature of the company prior to 1993. This reflects the progress we have made in transitioning Alamar from R&D to manufacturing."
 Alamar is financially stable with $4.5 million in total assets, $4.1 million in shareholders' equity, and little long-term debt, according to Santor. "We expect research and development costs to remain fairly constant through fiscal 1994, as most of our initial product line is now on the market. Sales and marketing costs should increase moderately in 1994 as marketing efforts become more fully realized," he said. Working capital was boosted to $3.5 million during fiscal 1993 due to completed private offerings that netted $3.1 million.
 During the fiscal year, Alamar signed agreements with several international and domestic distributors and hired a six-person domestic sales staff to form a network for distribution of products to international and domestic markets. Alamar products are now available throughout Latin America, parts of Europe and the Pacific Rim. According to Kenneth D. Miller, Alamar's chief executive officer, "We expect significant revenues over the next three years from these distributors." Miller said he expects to add more distributors in the near future.
 Besides the applications for bacteria and yeast, the University of California, San Francisco General Hospital used alamarBlue(TM) to test whether drugs used to treat tuberculosis are resistant to the TB bacteria. According to Miller, "The feasibility studies concluded in May were so encouraging we will pursue a full study." The World Health Organization declared TB a national research priority after the disease re-emerged in the 1980s. The only susceptibility test currently being used to test TB is called the Bactec method, which was developed over a decade ago and is radioactive. "Test results could be manually interpreted, unlike the Bactec method which requires an expensive and sophisticated instrument to interpret test results. This would be very beneficial, especially to Third World countries where TB poses a more severe problem," Miller said.
 "We look forward to fiscal 1994, which will represent nearly a full year of selling a virtually complete product line," Miller said. A 510k filing to seek clearance on the gram positive bacterial ID test is expected to be submitted to the FDA sometime in 1994. "Gram negative tests represent 55 percent of all specimens in a typical microbiology laboratory. This places an approximately $50 million value on the gram negative bacteria identification market overall. Therefore, receiving clearance on the gram negative ID was crucial," Miller said. "Gram positive ID is not a large revenue opportunity, but will be a good complement to our product line once clearance is received."
 Common stock in Alamar Biosciences Inc. is traded on NASDAQ under the symbol ALMR. The company develops, manufactures, and markets in vitro (outside the body) testing products for hospitals, reference laboratories and other health care providers. Alamar also markets alamarBlue(TM), an indicator dye used for determining cell viability in research and biotechnology applications.
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 /CONTACT: Kenneth D. Miller or Mark L. Santor of Alamar Biosciences, 916-567-3475; or Elizabeth Truax (media) or Lillian Armstrong (analysts) of the Financial Relations Board, 415-986-1591, for Alamar Biosciences/

CO: Alamar Biosciences Inc. ST: California IN: MTC SU: ERN

TM -- SF002 -- 5875 11/18/93 09:01 EST
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Publication:PR Newswire
Date:Nov 18, 1993

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