NEW YORK, Oct. 21-Lion Bioscience expects its revenues for the year to fall by as much as 25 percent from last year's totals, the company said today. In a statement released this morning, CEO Friedrich von Bohlen blamed non-cash write-offs, a shift from in-house drug discovery, and the general malaise in the life sciences industry for the shortfall.
In a conference call, von Bohlen said that given current economic conditions, many customers were waiting for new product introductions before making purchases, lengthening the sales cycle.
"Not that people are not interested, but in part, they say, 'It's great guys, but let's wait until the new more shiny product is available,'" he said.
The company will "conduct a review of its strategic investments in privately held companies," the statement said, and expects to adjust the current €10.6 million book value of its affiliates by as much as € 8.5 million.
Lion also said it expects to write off intangible assets and impaired goodwill of € 62.1 million in its second quarter due to its acquisition of Trega Biosciences and NetGenics.
In June, the company had predicted moderate revenue growth for its fiscal year ending March 31, 2003.
Lion still expects to break even by the fourth quarter of 2004. During the call, Chief Financial Officer Martin Hollenhorst said that expectation was still reasonable because Lion plans to introduce new products in the coming quarters and has instituted cost-saving measures expected to reduce spending by 20 to 25 percent.
For more information, see the statement.