SOUTH SAN FRANCISCO, Calif., May 26 /PRNewswire-FirstCall/ -- Monogram Biosciences, Inc. today announced that it intends to make any payment that becomes due with respect to its Contingent Value Rights (CVRs) in cash.
“The recent investment by Pfizer of $25 million provided us with the flexibility to satisfy any CVR liability entirely in cash,” said William D. Young, Monogram’s chairman and chief executive officer. “The conversion price of Pfizer’s convertible note is $2.7048 per share and we are pleased to be in a position to avoid further dilution from any payment that may be due under the CVRs.”
Pfizer, Inc. recently invested $25 million in Monogram through a 3% Senior Secured Convertible Note, with a conversion price that has been initially set at $2.7048 per share. At March 31, 2006, Monogram had $67 million in cash, cash equivalents and investments. Reflecting the Pfizer investment of $25 million, and assuming a maximum potential payment of approximately $57 million under the CVRs, on a proforma basis, these cash resources at March 31, would have been approximately $35 million.
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.
Forward Looking Statements
Certain statements in this press release are forward-looking. 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: the potential impact of payments by us on the Contingent Value Rights issued to former stockholders of ACLARA; 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.
Contacts: 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, +1-415-677-2700, jeremiah.hall@fkhealth.com
Web site: http://www.monogrambio.com/
