SOUTH SAN FRANCISCO, Calif., Oct. 3 /PRNewswire-FirstCall/ -- Monogram Biosciences, Inc. today announced that it has obtained a line of credit to finance working capital from Merrill Lynch Capital (a division of Merrill Lynch Business Financial Services, Inc.). Borrowings permitted under the line of credit are based on a formula using a percentage of eligible accounts receivable.
"This line of credit allows us to finance our working capital, particularly our accounts receivable, and adds a useful source of cash to fund our operations," said Alfred G. Merriweather, Monogram's chief financial officer. "While the amount available based on our current accounts receivable is approximately $5 million, as we develop our business in both HIV and oncology, the line allows for maximum borrowings of $10 million." The agreement has a term expiring in March 2010. Borrowings are secured by accounts receivable and certain other intangible assets, and are subject to certain covenants.
About Monogram
Monogram is advancing individualized medicine by discovering, developing and marketing innovative products to guide and improve treatment of serious infectious diseases and cancer. The Company's products are designed to help doctors optimize treatment regimens for their patients that lead to better outcomes and reduced costs. The Company's technology is also being used by numerous biopharmaceutical companies to develop new and improved antiviral therapeutics and vaccines as well as targeted cancer therapeutics. More information about the Company and its technology can be found on its web site at http://www.monogrambio.com.
About Merrill Lynch Capital
Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc., is a leading commercial finance business providing a broad range of structured financing solutions to middle market companies nationwide. Based in Chicago and with regional offices throughout the country, Merrill Lynch Capital is focused on four market segments: corporate finance, equipment finance, healthcare finance and real estate finance. The Healthcare Finance Group of Merrill Lynch Capital provides senior financing solutions for middle market healthcare companies, offering cash flow, asset, life sciences related and real estate based credit facilities and junior secured debt, and equity co-investments. The typical transaction size for senior debt is between $10 million and $250 million.
Forward Looking Statements
Certain statements in this press release are forward-looking. These forward-looking statements include references to the expected use of the revolving line of credit and the potential for growth in the Company's business in HIV and oncology. These forward-looking statements are subject to risks and uncertainties and other factors, which may cause actual results to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to: risks and uncertainties relating to covenants and other loan terms; the level of revenue and the related level of eligible receivables; the performance of our products; the growth in revenues; the size, timing and success or failure of any clinical trials for new HIV drugs; the use of our Co-Receptor Tropism Assay for patient use in the event of approval of any CCR5 inhibitors; the ability of our eTag assays to predict response to particular therapeutic agents, our ability to successfully conduct clinical studies and the results obtained from those studies; whether larger confirmatory clinical studies will confirm the results of initial studies; our ability to establish reliable, high-volume operations at commercially reasonable costs; expected reliance on a few customers for the majority of our revenues; the annual renewal of certain customer agreements; actual market acceptance of our products and adoption of our technological approach and products by pharmaceutical and biotechnology companies; our estimate of the size of our markets; our estimates of the levels of demand for our products; the impact of competition; whether payors will authorize reimbursement for our products and services; whether the FDA or any other agency will decide to further regulate our products or services; the ultimate validity and enforceability of our patent applications and patents; the possible infringement of the intellectual property of others; whether licenses to third party technology will be available; and whether we will be able to raise sufficient capital in the future, if required. For a discussion of other factors that may cause our actual events to differ from those projected, please refer to our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission. We do not undertake, and specifically disclaim any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Alfred G. Merriweather Jeremiah Hall Chief Financial Officer Feinstein Kean Healthcare Tel: 650 624-4576 Tel: 415 677-2700 amerriweather@monogrambio.comjeremiah.hall@fkhealth.com
Monogram Biosciences, Inc.CONTACT: Alfred G. Merriweather, Chief Financial Officer of Monogram,+1-650-624-4576, amerriweather@monogrambio.com; or Jeremiah Hall ofFeinstein Kean Healthcare for Monogram, +1-415 677-2700,jeremiah.hall@fkhealth.com
Web site: http://www.monogrambio.com/
