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Sequenom Plans $30M Placement as Q4 Revenues Fall and Loss Widens

NEW YORK, March 28 (GenomeWeb News) - Sequenom today posted declining revenues and a widened loss for the fourth quarter of 2005.

 

Separately, the company said that it plans to issue more than 54.5 million shares of common stock and around 32.7 million purchase warrants at $0.70 per share to raise $30 million by May 31.

 

For the quarter ended Dec. 31, 2005, Sequenom revenues fell 28 percent to $4.4 million from $6.1 million in the fourth quarter of 2004.

 

The company's net loss increased to $7.0 million, or $.17 per share, from $6.6 million, or $.16 per share, in the year-ago period.

 

Sequenom spent $3.0 million on research and development in the fourth quarter, down 23 percent from $3.9 million in the fourth quarter of 2004.

 

As of Dec. 31, the company had $8.7 million in cash, cash equivalents, short-term investments and restricted cash.

 

Harry Stylli, president and CEO of Sequenom, said in a statement that the restructuring activities that the company announced in September "will positively impact 2006."

 

He added that the company's recently launched iPLEX multiplexing assay and MassARRAY Compact system will be "the primary contributor[s] to top line revenue growth in 2006."

 

Sequenom projected 2006 revenues of $24 million - a 24 percent increase over 2005 revenues of $19.4 million. The company also expects to reduce its cash use by $10 million in 2006.

 

The company said it plans to complete development of a proprietary fetal DNA enrichment method in the third quarter, and to launch its iPLEX II system in the fourth quarter.

   

Sequenom added that it expects to launch a research-use only prenatal diagnostic for Rhesus D "in early 2007," and that it plans to "establish relationships with CLIA-certified laboratories" prior to the launch.

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