Lion's Q4 Revenues Slide; Sale of Bioinformatics Biz Expected by End of Summer
Lion Bioscience posted a nearly 70-percent decline in quarterly revenues for its fourth fiscal quarter ended March 31, according to full-year results that the company released as BioInform went to press last week.
According to these results, receipts fell to around €1.2 million ($1.5 million) for the quarter, from €3.9 million in the year-ago period.
The company reported €10 in total revenues for its 2004/2005 fiscal year, a decline of nearly 50 percent from €19.7 million in the prior fiscal year, but in line with projected revenues of €8 million to €10 million for the current year.
Due to the planned sale of its UK-based bioinformatics business [BioInform 05-30-05], the company reclassified all revenues and expenses related to this business as discontinued operations, with the prior-year figures adjusted accordingly, the company said.
In line with this reclassification, Lion reported adjusted total revenues of €200,000 for the 12 months ending March 31, compared with €300,000 in adjusted revenues for the prior fiscal year. These figures include only those revenues based on income from Lion's Cambridge, Mass., subsidiary.
Lion said in a statement that "the sales process of the bioinformatics business started successfully" and that it expects to close a sale "before the summer break."
Lion said it narrowed its net loss for the year to €13.2 million from €20.8 million in the prior fiscal year.
The company had previously projected €10 million to €11 million in net losses for the year ended March 31.
Lion said that it held cash and cash equivalents, including marketable securities, of €25.6 million as of March 31.
Lion also postponed the announcement of its financial results for the period ending June 30 from Aug. 4 to Aug. 12.
Indian Government Forecasts 'Surge' in Demand for Bioinformatics
According to a report prepared by India's Department of Information Technology and the Confederation of Indian Industry, there will be a "huge surge in demand for bioinformaticians" in the country over the next decade.
According to a CII press release about the report, the government agencies estimate that Indian companies currently make up 2.5 percent of the global bioinformatics market, but the nation "has the potential to capture 5 percent of the global pie, provided the government ushers in necessary changes."
The press release did not provide an estimate of the size of the global market for bioinformatics, and CII did not respond to requests for a copy of the report.
According to the press release, the Indian bioinformatics market would have to grow at a compound annual growth rate of 42 percent in order to reach its goal. To do this, India would require 6,484 bioinformatics professionals and 670 bioinformatics teachers by 2009 and 26,362 professionals and 2,723 by 2013.
The report also estimates that "demand for Indian bioinformatics professionals from [the] rest of the world is expected to rise from 348 in 2003-04 to a total of 8,169 by 2012-13."
BMS to Use Ingenuity Pathway Tools
Ingenuity said last week that it has signed a multi-year license agreement with Bristol-Myers Squibb for its Ingenuity Pathways Analysis application and Ingenuity Pathways Knowledge Base.
Under the terms of the agreement, Ingenuity's tools will be integrated with the existing bioinformatics infrastructure at BMS and deployed to all of the company's scientists.
Financial terms of the agreement were not disclosed.
NIH Awards SBIR to GNS for Cardiac Modeling
Gene Network Sciences said last week that it has won a $137,800 Phase I Small Business Innovation Research grant from the National Heart, Lung, and Blood Institute for further development of its cardiac modeling technology.
The award will support the development of improved protocols for safety testing and the creation of a software tool "for streamlined data integration in the cardiac electrical activity simulation," the company said.
This grant adds to two previous SBIR grants that GNS received from the NIH this year for its cardiac modeling technology. The other two grants are being used to develop the simulation platform for creating data-driven computer models of cardiac electrophysiology and to extend GNS technology to include models of key cardiac signaling networks [BioInform 02-07-05].
GNS was also awarded a portion of a $2 million grant, along with Cornell University and the University of California San Diego, to create a computer model of the canine ventricle [BioInform 02-16-04].
NCI Seeks Commercial Partners for Cancer Biomarker Database
The National Cancer Institute is "interested in collaborating with qualified commercial entities" to co-develop a cancer biomarker database under the terms of a Cooperative Research and Development Agreement.
According to a bulletin from the NIH Office of Technology Transfer, the NCI has identified a common set of data elements to describe a large number of cancer biomarkers, and is planning to use these data elements as a foundation for a cancer biomarker database to track a wide range of data on biomarkers.
According to the bulletin, "generic data elements selected by the NCI will be incorporated into a database and a set of elements will be chosen to tailor for specific markers for suitability and utilization."
The database is expected to enable researchers "to easily access, retrieve, and study the state of technology of a specific biomarker at a point of need." Access to this data "will direct industry to better assess the need for development of technologies dependent upon knowledge of the markers and may enhance communication among professionals by enabling them to correspond using a common vocabulary of standardized data elements for biomarkers by referring to the data elements that is the foundation of the database," NIH said.
Interested parties can contact Michelle Booden (301-451-7337; [email protected]).
DSM Licenses Phylosopher, Expressionist Software from Genedata
Genedata said last week that nutritional products manufacturer DSM has licensed its Phylosopher gene-function and pathway-analysis tool and its Expressionist microarray data-analysis tool.
Under the worldwide license, Genedata's products will be deployed at DSM's major research sites and will be used for all biological research, in particular metabolic engineering projects.
DSM, based in the Netherlands, develops and sells products for human and animal nutrition and health, cosmetics, pharmaceuticals, automobile products, coatings, electrics and electronics, and products for the construction industry. The company has approximately 24,000 employees worldwide.
Compugen's Q2 Revenues Fall by Half; Grants Make up 85 Percent of Revenue
Compugen last week reported a decline in second-quarter revenues as R&D spending and net losses remained flat.
Total receipts for the three months ended June 30 fell to $474,000 from $984,000 year over year. Around $404,000, or 85 percent, of the company's revenues in the current quarter were due to "government and other grants," Compugen said. In the second quarter of 2004, the company derived only 28 percent of its income, or $277,000, from grants.
Second-quarter R&D spending remained flat at around $3 million.
Net loss for the quarter was also flat at around $3.3 million, or $.12 per share.
Compugen said it had around $19.8 million in cash, equivalents, short-term cash deposits, and marketable securities as of June 30.