FREMONT, Calif., Nov. 12 /PRNewswire-FirstCall/ -- Vermillion, Inc. today announced financial results for its third quarter ended September 30, 2007 and an update on business progress.
“During the third quarter of 2007, we accomplished several important milestones including completion of enrollment of our ovarian cancer diagnostic clinical trial and securing $20.6 million from a private placement. In addition, we changed the Company’s name to Vermillion, Inc. to reflect our focus on specialty clinical diagnostic tests,” said Gail S. Page, President and Chief Executive Officer of Vermillion. “We are making excellent progress in each of our diagnostic programs. Our ovarian tumor triage test clinical trial was a major undertaking involving 27 clinical sites. Analysis of the blood samples from 550 patients is currently underway and we expect to report top-line data results in December, and plan a submission to the FDA shortly thereafter. Our peripheral arterial disease (PAD) diagnostic test is undergoing comprehensive validation studies with Quest Diagnostics with the expectation that it will be offered as a laboratory developed test in early 2008. As we announced last week, The Ohio State University Research Foundation will launch our test for thrombotic thrombocytopenic purpura (TTP) shortly.”
Third Quarter 2007 Financial Results
As a result of the November 13, 2006 sale of its former instrument business to Bio-Rad Laboratories, the Company does not anticipate having revenue until its diagnostic tests are commercialized. Accordingly, the Company had no revenue in the third quarter of 2007 compared to $4.7 million in the third quarter of 2006.
Total operating expenses for the third quarter of 2007 were $4.8 million compared to $8.7 million in the same period last year. The reduction in operating expenses was due primarily to the elimination of selling and marketing expenses associated with the Company’s former instrument business as well as reductions in research and development and general and administrative expenses.
The net loss for the third quarter of 2007 was $5.1 million compared to $7.0 million for the same period in 2006. Basic and diluted net loss per share for the third quarter of 2007 was $0.11 per share based on 48.1 million shares outstanding compared to a basic and diluted net loss per share of $0.19 per share for the same period in 2006 based on 36.1 million shares outstanding.
At September 30, 2007, the Company’s cash, cash equivalents and short-term investments were $23.5 million, compared to $9.6 million at June 30, 2007 and $17.7 million at December 31, 2006. Net cash used in operating activities in the third quarter of 2007 was $5.1 million and $16 million for the first nine months of 2007. During the third quarter of 2007, Vermillion raised $20.6 million in gross proceeds in a private placement.
Conference Call Details for November 12, 2007
Vermillion management will host a conference call today, November 12 at 4:30 p.m. Eastern Time to discuss these results and provide an update on business developments. To access the live conference call via phone, dial (877) 325-7371 from the United States and Canada or (+1 706) 634-0768 internationally. The conference ID is 21354673. Please dial-in approximately ten minutes prior to the start of the call. Additionally, you may access the live and subsequently archived webcast of the conference call from the Investor Relations section of the Company’s website at http://www.vermillion.com. Please connect to the web site at least 15 minutes prior to the call to allow for any software download that may be necessary.
A telephone replay will be available beginning approximately two hours after the call through November 26, 2007 and may be accessed by dialing (800) 633-8284 from the United States and Canada or (+1 402) 977-9140 internationally. The replay passcode is 21354673. An archived replay of the webcast will be available until the next quarterly call.
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 ongoing diagnostic programs in oncology/hematology, cardiology and women’s health with an initial focus in ovarian cancer. Based in Fremont, California, more information about Vermillion can be found on the Web at http://www.vermillion.com.
Safe Harbor Statement
This news release contains forward-looking statements that involve significant risks and uncertainties, including those discussed below and others that can be found in our Form 10-K for the year ended Dec. 31, 2006, and in our periodic reports on Form 10-Q and Form 8-K. Vermillion is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. Examples of such forward-looking statements include statements regarding Vermillion’s expectations for the timing of data for its ovarian tumor triage test clinical trial and the related submission to the U.S. Food and Drug Administration, its ovarian, TTP and PAD program plans, the likelihood of success in using protein biomarkers to detect ovarian cancer and predict survival, and expected decreases in operating expenses and projected cash usage. Actual results may differ materially from those projected in such forward-looking statements due to various factors, including the risk that Vermillion is unable to successfully utilize resources and execute plans for its molecular diagnostics business. Investors should consult our Form 10-K for the year ended Dec. 31, 2006, as amended, and our periodic reports on Form 10-Q and Form 8-K.
CONTACT: Sue Carruthers of Vermillion, Inc., +1-510-505-2233
Web site: http://www.vermillion.com/
