ViroLogic Updates 2004 Guidance and Provides Preliminary Second Quarter Results
July 12 2004 - 7:26PM
PR Newswire (US)
ViroLogic Updates 2004 Guidance and Provides Preliminary Second
Quarter Results Conference Call to Review Details at 8:00 a.m. EDT
Tomorrow SOUTH SAN FRANCISCO, Calif., July 12
/PRNewswire-FirstCall/ -- ViroLogic, Inc., (NASDAQ:VLGC) today
announced that it is lowering revenue guidance for the full year
2004 to $38 million to $41 million. This is primarily due to the
postponement of the start of a significant, late-stage clinical
trial by a major pharmaceutical customer to late 2004, which shifts
the anticipated associated testing revenue of approximately $3
million to 2005, combined with slower than expected growth in
patient testing in the first half of 2004. The Company's previous
revenue guidance was $42 million to $47 million. In addition, the
Company announced that it expects to report revenue of
approximately $9.2 million and a net loss applicable to common
stockholders of between $1.4 million and $1.7 million for the
quarter ended June 30, 2004, or $.03 per common share, based on
53.5 million weighted average common shares. This loss is primarily
due to lower than anticipated revenue, additional expenses from
planned marketing initiatives, and incremental expenses resulting
from the proposed merger with ACLARA BioSciences, Inc. The Company
anticipates reporting approximately $10.1 million of cash,
restricted cash and short-term investments as of June 30, 2004. The
Company plans to announce final results for the second quarter
after the market closes on August 4, 2004. "We believe the delay in
this customer's clinical trial is temporary, but the significance
of this project combined with lower than expected growth in patient
testing revenue in the first half of the year necessitated our
review of revenue expectations for 2004," said William D. Young,
CEO and Chairman of ViroLogic. "In the second quarter of 2004,
revenue from our pharmaceutical testing business is expected to be
approximately $2.3 million, an increase of approximately 35 percent
year-over-year. While revenues from clinical trials can be
unpredictable, we remain the partner of choice for pharmaceutical
companies developing new agents for HIV and hepatitis and continue
to see a robust pipeline of potential HIV therapies entering
clinical trials. Furthermore, the proposed merger with ACLARA would
enable us to expand beyond infectious diseases and address
opportunities in the development of personalized medicines to treat
cancer." A preliminary analysis of second quarter 2004 shows that
patient testing revenue is expected to be approximately $6.5
million versus $5.8 million in the first quarter of 2004 and $6.1
million in the second quarter of 2003. This indicates a renewal of
growth from two quarters of relatively flat patient testing
revenue. Growth in the second quarter of 2004 was primarily due to
increased demand for PhenoSense GT(TM), which was driven in part by
the Company's new distribution agreement with Quest Diagnostics. On
May 28, 2004, the Company entered into a definitive agreement to
merge with ACLARA BioSciences, Inc. and has filed an S-4 with the
SEC describing the merger. The merger, which is subject to approval
by ViroLogic's and ACLARA BioSciences' stockholders, is expected to
close in the fourth quarter of 2004. Conference Call Details
ViroLogic will host a conference call tomorrow, Tuesday, July 13,
2004, at 8:00 a.m. Eastern Time. To access the live call, please
dial 1-800-299-7089 (U.S.) or 617-801-9714 (international). The
conference ID is 30863449. Live audio of the conference call will
be simultaneously broadcast over the Internet and will be available
to members of the news media, investors and the general public.
Access to live and archived audio of the conference call will be
available by following the appropriate links at
http://www.virologic.com/ and clicking on the Investor Relations
link. Following the live broadcast, a telephone replay will also be
available at 1-888-286-8010 (U.S.) or 617-801-6888 (international),
passcode 20962282, until midnight Eastern Time on July 23, 2004.
The information provided on the teleconference is only accurate at
the time of the conference call, and ViroLogic will take no
responsibility for providing updated information except as required
by law. About ViroLogic ViroLogic is a biotechnology company
advancing individualized medicine by discovering, developing and
marketing innovative products to guide and improve treatment of
serious viral diseases such as AIDS and hepatitis. The Company's
products are designed to help doctors optimize treatment regimens
that lead to better patient outcomes and reduced costs. ViroLogic's
technology is also being used by numerous biopharmaceutical
companies to develop new and improved anti-viral therapeutics and
vaccines targeted at emerging drug-resistant viruses. More
information about the Company and its technology can be found on
its web site at http://www.virologic.com/. Certain statements in
this press release are forward-looking, including statements
relating to expectations for 2004 revenues, the pipeline of
clinical trials for HIV therapies, the timing of customer clinical
trials and anticipated completion of the proposed merger with
ACLARA BioSciences, Inc. (ACLARA). These forward-looking statements
are subject to risks and uncertainties and other factors, which may
cause actual results to differ materially from the anticipated
results or other expectations expressed in such forward-looking
statements. These risks and uncertainties include, but are not
limited to, the timing of pharmaceutical company clinical trials,
risks related to our pending merger with ACLARA, including the risk
that the closing conditions of the merger may not be satisfied and
the merger may not be completed, and costs related to the proposed
merger may adversely impact ViroLogic's financial performance, the
risks that the Company's products may not perform, whether
ViroLogic successfully introduces new products, risks related to
the implementation of the Company's distribution agreement with
Quest, whether others introduce competitive products, the risk that
the Company's products for patient testing may not continue to be
accepted or that increased demand from drug development partners
may not develop as anticipated, the risk that gross margins may not
increase as expected, whether payors will authorize reimbursement
for its products, whether the FDA or any other agency will decide
to regulate ViroLogic's products or services, whether the Company
will encounter problems or delays in automating its processes,
whether intellectual property underlying the Company's
PhenoSense(TM) technology is adequate, whether licenses to third
party technology will be available, whether ViroLogic is able to
build brand loyalty and expand revenues, and whether ViroLogic will
be able to raise sufficient capital when required. For a discussion
of other factors that may cause ViroLogic's actual events to differ
from those projected, please refer to the Company's most recent
annual report on Form 10-K, quarterly reports on Form 10-Q, and the
preliminary Joint Proxy/Prospectus related to the proposed merger
with ACLARA, as well as other subsequent filings with the
Securities and Exchange Commission. DATASOURCE: ViroLogic, Inc.
CONTACT: Karen Wilson, CFO, +1-650-624-4164, or Web site:
http://www.virologic.com/
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