Printer Friendly


 PRINCETON, N.J., Nov. 12 /PRNewswire/ -- DNX Corporation (NASDAQ: DNXX) today reported financial results for the third quarter and nine months ended Sept. 30, 1993.
 Revenues in the current quarter more than tripled to $6,323,000 from $1,845,000 in the comparable quarter of 1992. For the first nine months of 1993, revenues increased to $7,837,000 from $5,167,000 for the same period. The third quarter revenues and the nine months revenues were favorably impacted by DNX's acquisition of Pharmakon Europe in France during the fourth quarter of 1992 and also by significant increases in revenues at both Pharmakon's United States and European subsidiaries.
 During the third quarter DNX took a one-time special charge of $8 million, or $0.92 per share, as a consequence of its curtailment of the blood substitute program and redirection of its Biotherapeutics operations to emphasize its xenotransplantation program. The special charge consisted of $1.1 million for severance-related costs, $1.8 million for future rents and related obligations, $4.6 million for the write downs of fixed assets to net realizable values and $0.5 million for other related costs. After the special charge, the net loss for the quarter was $11,441,000, or $1.32 per share, on 8,700,000 shares compared to $1,535,000, or $0.18 per share, on 8,685,000 shares in 1992. For the first nine months of 1993, net losses were $18,092,000, or $2.08 per share, compared to $3,904,000, or $0.45 per share, in 1992. DNX ended the third quarter with $17.9 million in cash, cash equivalents, investments and restricted cash and $20.4 million in stockholder equity.
 "Pharmakon's tremendous growth -- both in the U.S. and abroad -- underscores the value of our biological testing strategy and highlights the need for such services. In fact, we believe that the trend of pharmaceutical outsourcing will continue to fuel growth in this area of our business," said Paul J. Schmitt, president and chief executive officer of DNX.
 "With the decision to curtail our blood substitute program, our Biotherapeutics operation has been streamlined to capitalize on the recent advancements we have achieved in our xenotransplantation program. Though it was difficult, the decision to curtail our blood substitute program was necessary given the capital-intensive nature of the project. We have cut our burn rate approximately in half and have refocused our financial resources to enhance our leadership position in xenotransplantation while continuing to generate significant growth in sales and profits at Pharmakon," said Mr. Schmitt.
 Separately, DNX announced that Steven H. Holtzman, president of its wholly owned subsidiary DNX Biotherapeutics, Inc., will be resigning effective Dec. 31, 1993. He will remain a member of DNX's board of directors and a consultant to the company through 1994.
 "Since DNX's inception, Steve has made significant contributions to the company and has been a tremendous asset to our organization. I am pleased we will continue to benefit from his guidance as a member of the board of directors," said Mr. Schmitt.
 DNX is a leader in the research and development of therapeutic products and biological testing services based on transgenic animal technology. Biological testing services employing Biodigm(R) animal models will be marketed through DNX's wholly owned subsidiary, Pharmakon Research International Inc.
 Consolidated Statements of Operations
 (in thousands except share data/unaudited)
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Commercial services $6,169 $1,576 $17,281 $4,370
 Research contracts and
 license fees 154 269 556 797
 Total 6,323 1,845 17,837 5,167
 Operating expenses:
 Costs of commercial services 4,626 1,077 13,429 3,168
 Research and development 3,400 1,584 9,171 4,002
 General, administrative and
 marketing 1,794 1,080 5,527 3,052
 Restructuring charge(a) 8,002 --- 8,002 ---
 Total 17,822 3,741 36,129 10,222
 Loss from operations (11,499) (1,896) (18,292) (5,055)
 Other income (expense), net 48 361 206 1,151
 Prov. (benefit) for inc. taxes (10) --- 6 ---
 Net loss $(11,441) $(1,535) $(18,092) $(3,904)
 Net loss per share $(1.32) $(0.18) $(2.08) $(0.45)
 Shares used in computing net
 loss per share amounts 8,700 8,685 8,695 8,657
 Summary Balance Sheets
 (in thousands, unaudited) (b)
 Sept. 30, 1993 Dec. 31, 1992
 Cash, cash equivalents and
 investments $16,472 $29,674
 Restricted cash 1,425 10
 Accounts receivable 6,157 4,860
 Property, equipment and leasehold
 improvements, net 18,290 17,863
 Intangible assets, net 1,895 2,253
 All other assets 975 1,367
 Total assets $45,214 $56,027
 Current liabilities $13,442 $ 7,851
 Long-term debt 8,213 6,500
 Deferred income taxes 1,941 2,053
 All other liabilities 1,196 1,152
 Total stockholders' equity 20,422 38,471
 Total liabilities and stockholders'
 equity $45,214 $56,027
 (a) In October 1993, the company initiated a plan to suspend research and development efforts on its hemoglobin-based Blood Substitute program and thereby downsized and restructured its Biotherapeutics operations. The company recorded a third quarter charge of $8 million which included $1.1 million for severance-related costs, $1.8 million for future rents and related obligations, $4.6 million for the write down of fixed assets to net realizable values and $0.5 million for other related costs.
 (b) The consolidated statements of operations and summary balance sheets should be read in conjunction with the disclosures contained in DNX's 1992 annual report form 10-K and quarterly report on form 10-Q for the nine months ended Sept. 30, 1993.
 -0- 11/12/93
 /CONTACT: Paul J. Schmitt, president and CEO of DNX, 609-520-9300, or Anthony J. Russo, Ph.D., of Noonan/Russo Communications, 212-696-4455, ext. 202/

CO: DNX Corporation ST: New Jersey IN: MTC SU: ERN

GK-LG -- NY010 -- 3538 11/12/93 09:09 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 12, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters