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Lion, Having Shed its Bioinformatics Business, Posts Profit for FY 2005/2006

NEW YORK (GenomeWeb News) - Lion Bioscience said last week that the recent sale of its bioinformatics business helped it reach profitability for the 2005/2006 fiscal year - the first profitable year in the company's history.
 
The company said in April that it had sold its bioinformatics operations to UK-based BioWisdom for €4 million ($5.1 million).
 
Lion's results for the quarter ended March 31 include a positive impact of €2.1 million ($2.7 million) from the sale, which includes the sales proceeds "less transferred book values as well as selling costs," the company said.
 
For the full year, the company recorded a profit of €1 million, compared to a net loss of €12.9 million in the 2004/2005 fiscal year.
 
Revenues including the bioinformatics group, which the company has recorded as discontinued operations, totaled €6.2 for the fiscal year, compared to €10 million in fiscal year 2004/2005.
 
Revenues from continuing operations were €600,000 for the year, and were due to in-licensed products from Lion's US subsidiary in Cambridge, Mass.
 
Cash and cash equivalents, including marketable securities, totaled €23.4 million as of March 31.
 
The company said in a statement that it has "evaluated several business models" for the remaining business in the wake of the sale of the bioinformatics group, including "a pure financial holding on the one hand or to specific M&A transactions with selected companies on the other hand."
 
Lion said that it is "currently in negotiations with potential partners," but did not disclose further details.
 
Lion expects to break even for its 2006/07 fiscal year, but added that "possible transaction costs with regard to the company's realignment could negatively influence the results."

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