This article has been corrected from a previous version, which incorrectly stated that the company was closing its Columbus, Ohio office. The Cleveland office is to be closed while the Columbus office will stay open. GenomeWeb regrets the error.
NEW YORK, May 14 - Lion Biosciences reported a drop in fourth-quarter revenues yesterday, and said it plans to lay off an additional 50 staff by the end of July, reducing its total headcount to 310.
The company's revenues totaled €7.7 million ($8.8 million) for the quarter, down from €10.6 million for the same period last year. The company's fiscal year ended March 31.
Lion also reported decreased total expenses, to €21.6 million, from €24.0 million for the fourth quarter of last year.
At the end of March, Lion had €72.9 million in cash and cash equivalents, compared to €124.0 million a year before.
Despite this downturn in revenues for the last quarter of its fiscal year, Lion projected that its revenues will grow to €40 million for the coming year, up from €30 million for this year. This growth will be driven, according to the company, by sales of the company's DiscoveryCenter integration platform and its Lion Target Engine, "as well as further penetration of the company's existing products and new partnerships," a company statement said. Lion expects revenues for the first two quarters of this coming year, however, to be in line with those of the first six months of the last year, and for the increase in revenues to take place in the second half of the fiscal year.
Revenues from the company's ongoing collaboration with Bayer are expected to make up a decreasing percentage of total revenues from 33 percent in the past fiscal year to 25 percent in the coming fiscal year.
The company's additional staff reduction, which is taking place in the current quarter, are the tail end of a "streamlining" effort that the company began several months ago, when it decided to narrow its focus from drug discovery to informatics.
The initial cuts were made from a staff of over 500 employees, Lion CEO Friedrich von Bohlen told GenomeWeb at the time. They included the departure of two senior executives, CSO Jan Mous and chief information officer Reinhard Schneider.
The company has since hired a new president for its US Operations, former Spotfire VP Joseph Donahue.
In finishing the restructuring, Lion also said yesterday it plans to close its Cleveland, Ohio site by June 30, situate development of its ADME technology Idea pkExpress in San Diego, and focus development of its Lead Engine and Target Engine, as well as software testing and quality assurance programs in Heidelberg.