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Citing Pharma Spending Delays, Entelos Lowers Full-Year Revenue Guidance

NEW YORK (GenomeWeb News) – Biosimulation firm Entelos said today that it expects its fourth-quarter and full-year revenues to be below previous estimates.
 
“The current economic crisis has impacted almost every industry including our customer segment,” Entelos said in a statement. “Many of our pharmaceutical customers have recently announced delays in some of their internal drug development programs.”
 
As a result, the company said that revenues for its fourth quarter and full year ended Dec. 31, 2008, will be “below expectations,” but did not provide further details.
 
The company previously estimated that its full-year revenues would be around $24 million — a 10 percent increase over full-year 2007 revenues of $21.8 million.
 
Entelos said today that it has “made progress” towards cash flow breakeven because cash receipts will be higher in the second half of 2008 than in the first half of the year, which has reduced its burn rate.
 
Entelos plans to report its full-year financial results in March 2009.

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