Tm Bioscience this week reported that net losses for the second quarter increased despite a 55-percent surge in revenues.
The company reported $3 million in revenues for the quarter ended June 30, up from $2 million during the same quarter a year ago.
Product sales for the second quarter climbed 80 percent to $2.9 million from $1.6 million in second quarter of 2005, the company said. It added that sales of Tag-It CF70 reagents and increased demand from Genzyme drove the growth.
Tm Bioscience’s R&D expenses for the quarter remained essentially flat at $1.1 million.
The company’s quarterly net loss widened 26 percent to $4.6 million from $3.7 million in the year-ago period.
As of June 30, Tm Bioscience had $2.8 million in cash, cash equivalents, and short-term investments.
Bio-Rad to Buy Ciphergen's Proteomics Business for $20M, Takes Equity Stake
Bio-Rad Laboratories has agreed to purchase Ciphergen’s proteomics instrument business for approximately $20 million in cash, Ciphergen said this week. Bio-Rad is also making a $3 million equity investment in Ciphergen.
Bio-Rad will be acquiring Ciphergen’s proteomics products including its SELDI (surface enhanced laser desorption/ionization) technology, ProteinChip arrays, and accompanying software. Bio-Rad will manufacture, sell, and market the SELDI technology to the life sciences marketplace for applications such as biomarker discovery, characterization, and validation.
Ciphergen said that it will retain exclusive rights to the products for the diagnostics market, and that it will maintain a supply agreement with Bio-Rad to purchase SELDI instruments and consumables for the continued development of its diagnostics business. The companies will also collaborate to identify SELDI customers interested in partnering with Ciphergen to commercialize biomarker discoveries, Ciphergen said.
Following the transaction, which is expected to be approved by Ciphergen stockholders in the fourth quarter, Ciphergen will have about 40 employees dedicated to commercializing diagnostic tests, primarily in oncology, with an initial focus on ovarian and prostate cancers.
Last year, Ciphergen entered a three-year strategic alliance with Quest Diagnostics to develop and commercialize proteomic diagnostic tests, including the first for ovarian cancer. Quest purchased a 17-percent stake in the company as part of the agreement.
TransgenomicNarrows Q2 Loss 62 Percent Though Revenue Slides 10 Percent
Transgenomic last week said that total revenue declined 10 percent in the second quarter and net loss narrowed 62 percent.
Receipts for the second quarter ended June 30 slid to $6.2 million from $6.9 million in the same quarter last year.
The company spent about $531,000 on R&D in the second quarter, down 9 percent from $581,000 in the comparable period last year.
Transgenomic said its net loss shrank to $383,000 from $998,000 in Q2 2005.
As of June 30, Transgenomic had approximately $7.4 million in cash and cash equivalents.
Looking ahead, Craig Tuttle, Transgenomic’s president and CEO, said in a statement that his “immediate priorities” are to “maximize opportunities from existing products, focus and streamline the product development pipeline, and to accelerate the drive to profitability.”
“We are currently looking to commercialize several new products and services that leverage on enhancing the capabilities of our highly sensitive and effective mutation screening technologies,” he said.
The first of these is Transgenomic’s Surveyor CE technology, which is designed to reduce the cost and time required for discovering mutations using routine sequencing platforms.
The second is a “stronger commercial push” of the company’s lab services business both for research and clinical discovery of disease-causing mutations, he said.
The third is based on Transgenomic’s capabilities for isolating DNA from mixed specimens for forensic and microbial analyses. He said the company saw “growing success” in its cytogenetics product portfolio.