Virologic (NASDAQ:VLGC)
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ViroLogic Updates 2004 Guidance and Provides Preliminary Second
Quarter Results
Conference Call to Review Details at 8:00 a.m. EDT Tomorrow
SOUTH SAN FRANCISCO, Calif., July 12 /PRNewswire-FirstCall/ -- ViroLogic,
Inc., (NASDAQ:VLGC) today announced that it is lowering revenue guidance for
the full year 2004 to $38 million to $41 million. This is primarily due to the
postponement of the start of a significant, late-stage clinical trial by a
major pharmaceutical customer to late 2004, which shifts the anticipated
associated testing revenue of approximately $3 million to 2005, combined with
slower than expected growth in patient testing in the first half of 2004. The
Company's previous revenue guidance was $42 million to $47 million.
In addition, the Company announced that it expects to report revenue of
approximately $9.2 million and a net loss applicable to common stockholders of
between $1.4 million and $1.7 million for the quarter ended June 30, 2004, or
$.03 per common share, based on 53.5 million weighted average common shares.
This loss is primarily due to lower than anticipated revenue, additional
expenses from planned marketing initiatives, and incremental expenses resulting
from the proposed merger with ACLARA BioSciences, Inc. The Company anticipates
reporting approximately $10.1 million of cash, restricted cash and short-term
investments as of June 30, 2004. The Company plans to announce final results
for the second quarter after the market closes on August 4, 2004.
"We believe the delay in this customer's clinical trial is temporary, but the
significance of this project combined with lower than expected growth in
patient testing revenue in the first half of the year necessitated our review
of revenue expectations for 2004," said William D. Young, CEO and Chairman of
ViroLogic. "In the second quarter of 2004, revenue from our pharmaceutical
testing business is expected to be approximately $2.3 million, an increase of
approximately 35 percent year-over-year. While revenues from clinical trials
can be unpredictable, we remain the partner of choice for pharmaceutical
companies developing new agents for HIV and hepatitis and continue to see a
robust pipeline of potential HIV therapies entering clinical trials.
Furthermore, the proposed merger with ACLARA would enable us to expand beyond
infectious diseases and address opportunities in the development of
personalized medicines to treat cancer."
A preliminary analysis of second quarter 2004 shows that patient testing
revenue is expected to be approximately $6.5 million versus $5.8 million in the
first quarter of 2004 and $6.1 million in the second quarter of 2003. This
indicates a renewal of growth from two quarters of relatively flat patient
testing revenue. Growth in the second quarter of 2004 was primarily due to
increased demand for PhenoSense GT(TM), which was driven in part by the
Company's new distribution agreement with Quest Diagnostics.
On May 28, 2004, the Company entered into a definitive agreement to merge with
ACLARA BioSciences, Inc. and has filed an S-4 with the SEC describing the
merger. The merger, which is subject to approval by ViroLogic's and ACLARA
BioSciences' stockholders, is expected to close in the fourth quarter of 2004.
Conference Call Details
ViroLogic will host a conference call tomorrow, Tuesday, July 13, 2004, at 8:00
a.m. Eastern Time. To access the live call, please dial 1-800-299-7089 (U.S.)
or 617-801-9714 (international). The conference ID is 30863449. Live audio of
the conference call will be simultaneously broadcast over the Internet and will
be available to members of the news media, investors and the general public.
Access to live and archived audio of the conference call will be available by
following the appropriate links at http://www.virologic.com/ and clicking on
the Investor Relations link. Following the live broadcast, a telephone replay
will also be available at 1-888-286-8010 (U.S.) or 617-801-6888
(international), passcode 20962282, until midnight Eastern Time on July 23,
2004.
The information provided on the teleconference is only accurate at the time of
the conference call, and ViroLogic will take no responsibility for providing
updated information except as required by law.
About ViroLogic
ViroLogic is a biotechnology company advancing individualized medicine by
discovering, developing and marketing innovative products to guide and improve
treatment of serious viral diseases such as AIDS and hepatitis. The Company's
products are designed to help doctors optimize treatment regimens that lead to
better patient outcomes and reduced costs. ViroLogic's technology is also being
used by numerous biopharmaceutical companies to develop new and improved
anti-viral therapeutics and vaccines targeted at emerging drug-resistant
viruses. More information about the Company and its technology can be found on
its web site at http://www.virologic.com/.
Certain statements in this press release are forward-looking, including
statements relating to expectations for 2004 revenues, the pipeline of clinical
trials for HIV therapies, the timing of customer clinical trials and
anticipated completion of the proposed merger with ACLARA BioSciences, Inc.
(ACLARA). 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 timing of pharmaceutical company clinical trials, risks related
to our pending merger with ACLARA, including the risk that the closing
conditions of the merger may not be satisfied and the merger may not be
completed, and costs related to the proposed merger may adversely impact
ViroLogic's financial performance, the risks that the Company's products may
not perform, whether ViroLogic successfully introduces new products, risks
related to the implementation of the Company's distribution agreement with
Quest, whether others introduce competitive products, the risk that the
Company's products for patient testing may not continue to be accepted or that
increased demand from drug development partners may not develop as anticipated,
the risk that gross margins may not increase as expected, whether payors will
authorize reimbursement for its products, whether the FDA or any other agency
will decide to regulate ViroLogic's products or services, whether the Company
will encounter problems or delays in automating its processes, whether
intellectual property underlying the Company's PhenoSense(TM) technology is
adequate, whether licenses to third party technology will be available, whether
ViroLogic is able to build brand loyalty and expand revenues, and whether
ViroLogic will be able to raise sufficient capital when required. For a
discussion of other factors that may cause ViroLogic's actual events to differ
from those projected, please refer to the Company's most recent annual report
on Form 10-K, quarterly reports on Form 10-Q, and the preliminary Joint
Proxy/Prospectus related to the proposed merger with ACLARA, as well as other
subsequent filings with the Securities and Exchange Commission.
DATASOURCE: ViroLogic, Inc.
CONTACT: Karen Wilson, CFO, +1-650-624-4164, or
Web site: http://www.virologic.com/