Skip to main content
Premium Trial:

Request an Annual Quote

Lion Posts Dwindling Q2 Revenue, Greater Costs, and a Widened Loss

NEW YORK, Nov. 6 - Lion Bioscience today said that dwindling revenues and bloated expenses in its fiscal second quarter fueled a substantial increase in net loss.


A "sustained decline" in industry spending together with Lion's retreat from its drug-discovery business caused totals revenue in the second quarter 2002 to fall to €5.2 million, or $5.2 million, from €10.2 million one year ago, Lion said.


Receipts shrank across the board. The biggest slide in the second quarter came from the iD3 drug-discovery unit, which contributed €239,000 in revenue compared with €1.7 million it reported in the second quarter 2001. Lion said it plans to shut down the business by the end of the current calendar year, a move that will shutter a pair of facilities in San Diego and Heidelberg, Germany, and cost at least 70 staffers their jobs.


Revenue from licenses fell to €2.1 million in this year's second quarter from €3.6 million one year ago, Lion said. In addition, second-quarter receipts from professional services receded by nearly €2 million year over year, and revenue from maintenance and support services decreased by €255,000, the company said.


However, Lion reiterated its goal of breaking even in the fiscal fourth quarter next year. The firm said the launch of its Discovery Center modular-integration platform in the third quarter next year will help it achieve that goal.


Total expenses in the second quarter, meantime, jumped to €23.8 million from €19.3 million in the same period in 2001. Driving that increase were increases in R&D spending, which grew by €2million, and general and administrative costs, which increased by €1.5 million, Lion said. The company stressed that the increase was due primarily to its acquisition of NetGenics in January.


As a result, net loss for the period ended Sept. 30 ballooned to €92.7 million, or €4.67, from €10.3 million, or €.55, one year ago. Lion blamed the surge on €70.6 million in non-cash amortization expenses related to its acquisition of NetGenics and Trega Biosciences, together with investment losses totaling €8.5 million.


Lion said it had roughly €23.7 million cash and cash equivalents as of Sept. 30.


"We are not managing the company on a quarterly basis but for the long term, based on a validated assessment of the industry's needs," Lion CEO Friedrich von Bohlen said in a statement this morning.


Click here for more information.

The Scan

Guidelines for Ancient DNA Work

More than two dozen researchers have developed new ethical guidelines for conducting ancient DNA research, which they present in Nature.

And Cleared

A UK regulator has cleared former UK Prime Minister David Cameron in concerns he should have registered as a consultant-lobbyist for his work with Illumina, according to the Financial Times.

Suit Over Allegations

The Boston Globe reports that David Sabatini, who was placed on leave from MIT after allegations of sexual harassment, is suing his accuser, the Whitehead Institute, and the institute's director.

Nature Papers on Esophageal Cancer, Origin of Modern Horses, Exome Sequencing of UK Biobank Participants

In Nature this week: genetic and environmental influences of esophageal cancer, domestic horse origin traced to Western Eurasian steppes, and more.