Vermillion Announces Third Quarter 2008 Financial Results and Business Progress
FREMONT, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Vermillion, Inc. , a molecular diagnostics company, today reported financial results for the third quarter ended September 30, 2008, and provided an update on recent clinical and corporate developments.
Third Quarter 2008 Financial Results
Total operating expenses decreased in the third quarter of 2008 to $3.1 million, from $4.8 million in the same period last year. The decrease was due primarily to restructuring of the Company and reduced general and administrative expenses.
The Company's net loss for the third quarter of 2008 was $4.7 million, compared to $5.1 million for the same period in 2007. Basic and diluted net loss for the third quarter of 2008 was $0.74 per share based on 6.38 million total shares outstanding, compared to a basic and diluted net loss of $1.06 per share based on 4.81 million total shares outstanding for the same period in 2007. Earnings per share calculations are based on a post reverse stock split which occurred in March 2008.
At September 30, 2008, the Company's cash, short- and long-term investments totaled $5.4 million, compared to $20.4 million at December 31, 2007. Net cash used in operating activities in the third quarter of 2008 was $3.7 million.
2008 Third Quarter Highlights and Accomplishments
Vermillion is pleased to report the following developments in its clinical and commercialization diagnostic programs:
"We continue to diligently manage expenses and cash utilization while focusing on our OVA1 clinical trial submission. With the renewal of our strategic alliance, we look forward to working with Quest Diagnostics to bring both OVA1 and VASCLIR to the market," said Gail Page, President and CEO of Vermillion.
About Vermillion
Vermillion, Inc. is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. Vermillion is based in Fremont, California. Additional information about Vermillion can be found on the Web at http://www.vermillion.com.
Forward-Looking Statements
This news release contains forward-looking statements that involve significant risks and uncertainties, including statements regarding Vermillion's plans, objectives, expectations and intentions. These forward-looking statements are based on Vermillion's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Vermillion notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. There are no guarantees that Vermillion will succeed in its efforts to commercialize ovarian cancer or PAD diagnostics products in 2008 or during any other period of time. Factors that could cause actual results to materially differ include but are not limited to: (1) uncertainty in obtaining intellectual property protection for inventions made by Vermillion; (2) unproven ability of Vermillion to discover, develop, and commercialize ovarian cancer or PAD diagnostic products based on findings from its disease association studies; (3) unproven ability of Vermillion to discover or identify new protein biomarkers and use such information to develop ovarian cancer or PAD diagnostic products; (4) uncertainty as to whether Vermillion will be able to obtain any required regulatory approval of its ovarian cancer or PAD diagnostic products; (5) uncertainty of market acceptance of its ovarian cancer or PAD diagnostic products, including the risk that its products will not be competitive with products offered by other companies, or that users will not be entitled to receive adequate reimbursement for its products from third party payors such as private insurance companies and government insurance plans; and (6) other factors that might be described from time to time in Vermillion's filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Vermillion expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Vermillion's expectations or any change in events, conditions or circumstances on which any such statement is based, unless required by law.
CONTACT: Investors, Sue Carruthers of Vermillion, Inc., +1-510-226-2811
Web site: http://www.vermillion.com/