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SEQUENOM, INC.
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For Immediate Release
Contact: Abigail Devine, APR Media: Renee Connolly
Investor Relations Noonan/Russo Communications
SEQUENOM, Inc. (212) 696-4455, ext. 227
(858) 202-9032 renee@noonanrusso.com
adevine@SEQUENOM.com
SEQUENOM PROVIDES STRATEGIC AND FINANCIAL GUIDANCE RELATED TO
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MERGER WITH GEMINI GENOMICS
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Combined Company to Initiate Biotherapeutics Business Maximizing Value of
Disease Gene Discoveries
San Diego, June x, 2001 - SEQUENOM(TM), Inc. (Nasdaq: SQNM) today provided
business strategy and financial guidance related to its proposed merger with
Gemini Genomics, announced May 29, 2001. The combined company, which will
operate under the name SEQUENOM and its existing ticker symbol SQNM, represents
what the companies believe to be the industry's largest disease gene
identification initiative. Maximizing the value of its MassARRAY(TM)
business and disease gene discoveries, SEQUENOM will operate SEQUENOM Genomics
and SEQUENOM Biotherapeutics.
Company Structure
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SEQUENOM Genomics will focus on MassARRAY systems and consumables sales,
MassARRAY-based services provided to the Company's collaborators and disease
gene association licensing and validation programs. Based on the performance of
MassARRAY technology and a proprietary population genetics approach, SEQUENOM
identifies genes that affect the health of large portions of the human
population. SEQUENOM Genomics is executing a program to identify approximately
400 genes with significant impact on human health. The merger with Gemini will
substantially accelerate the Company's ability to characterize the association
of candidate disease genes to major common diseases.
SEQUENOM Biotherapeutics will apply technologies to transition human disease
genes into drugs and diagnostics, leveraging the value of candidate disease
genes identified by SEQUENOM Genomics. SEQUENOM Biotherapeutics will accelerate
and expand Gemini's existing target discovery activities, including functional
genomic and computational biology approaches. Additional investments will be
made for resources in areas such as target and lead validation, drug development
and clinical validation. Partnering opportunities may exist at any point along
this process, with a focus on licensing later stage, higher value discoveries.
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SEQUENOM Biotherapeutics will also seek strategic partners to leverage
additional value from Gemini's extensive clinical resources.
Financial Projections
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Financial benefits from internal development of diagnostic and therapeutic
products are expected after the fiscal year ending December 31, 2002, but are
difficult to predict at this stage. However, SEQUENOM expects enhanced near-term
opportunities in commercializing validated human disease-related genes and
diagnostics and securing additional collaborations with biotechnology and
pharmaceutical companies.
Revenue expectations for 2001, before deduction of the cost of goods sold,
remain at $30 million, as previously stated by SEQUENOM during its first quarter
financial results webcast. This includes approximately $20 million in MassARRAY
systems and consumables sales and $10 million in genomics services provided to
the Company's collaborators. Revenues for 2002, before deduction of the cost of
goods sold, are expected to be approximately $60 million. This includes $45
million in MassARRAY products and services and $15 million in gene license and
biotherapeutic service revenues.
Research and development expenses are currently expected to be approximately $30
million for 2001 and approximately $45 million for 2002. SEQUENOM and Gemini
have a current combined headcount of approximately 345 employees. The combined
company expects to end the fiscal year 2001 with approximately 300 employees.
Employee headcount is expected to increase to approximately 400 people by the
end of fiscal year 2002.
SEQUENOM and Gemini ended March 31, 2001 with a combined cash position of
approximately $208 million. Net cash used for operating activities is expected
to be approximately $36 million for the remainder of 2001. SEQUENOM also
anticipates merger integration expenses of approximately $22 million. These
expenses include transaction, restructuring and associated tax liability costs.
SEQUENOM estimates that the consolidated cash position will be approximately
$150 million at the end of fiscal year 2001. The Company expects cash use of
approximately $50 million for 2002. The newly formed SEQUENOM Biotheraputics
business is expected to utilize approximately $15 million or 30% of the 2002
cash burn. Break even is not likely to occur for the next several years.
"We are executing on a business model that capitalizes on the immediate value of
genes associated with major diseases and their downstream value through
diagnostic and therapeutic product development," said Toni Schuh, Ph.D.,
SEQUENOM's President and Chief Executive Officer.
"By mid 2002 we intend to expand the leading market position of the MassARRAY
product line for large-scale genotyping and screen all human genes with regard
to their overall population impact. We also expect to identify a subset of 400
high value candidate disease genes. To date, as a combined company, we hold a
portfolio of more than 115 such candidate disease genes. We use a filtering
strategy, our population genetics approach, to identify the disease genes that
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indicate an impact on large portions of the total human population. Also
important to this strategy is that we determine the impact of a gene on human
health upfront. The result is a subset of high value disease genes on which to
focus drug development efforts. We believe this quality, rather than quantity
approach to drug target discovery will result in leads with significant market
potential."
About SEQUENOM
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SEQUENOM is a leader in the worldwide effort to identify genes and genetic
variations with significant impact on human health. Using its innovative
technologies, information and scientific strategy, the Company is translating
data generated from the Human Genome Project into medically important
applications. Breaking through the limitations of traditional genomic research,
SEQUENOM's MassARRAY product line, SNP assay portfolio and disease gene
discovery program are generating results that position SEQUENOM and its partners
to lead the race in developing genetics-based diagnostic and therapeutic
products.
About Gemini Genomics
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Gemini Genomics is a clinical genomics company focused on the discovery and
commercialization of novel gene-based drug discovery targets. Because it is
clear that a comprehensive understanding of disease depends on the integration
of genetics, proteomics, environmental factors, and clinical and medical
information from human volunteers, Gemini Genomics' approach has been to collect
and analyze that information from a wide range of human population groups,
including twins, disease-affected families, isolated (founder) populations and
drug trial subjects. By investing in leading edge bioinformatics, molecular and
computational biology and other technologies, Gemini Genomics has been able to
effectively apply these resources to the acceleration of disease gene
identification, target discovery and drug development.
# # #
Except for the historical information contained herein, the matters set forth in
this press release, including statements as to the combined company's disease
gene identification initiatives, the acceleration of SEQUENOM'S ability to
characterize the association of candidate disease genes to major common
diseases, the structure of the combined company's organization, SEQUENOM'S
ability to transition human disease genes into drugs and diagnostics, the
acceleration and expansion of Gemini Genomics PLC's existing target discovery
activities, the availability of additional collaborations with pharmaceutical
companies and partnering and licensing opportunities, the financial effect of
the merger on SEQUENOM and its profits and losses, the financial benefits
resulting from the internal development of diagnostic and therapeutic products,
the enhancement of near-term opportunities to commercialize validated human
disease-related genes and diagnostics, SEQUENOM'S projected research and
development and selling and administrative expenses, SEQUENOM's projected
revenues, SEQUENOM's employee headcount projections, expectations of SEQUENOM'S
consolidated cash position, net cash used for operating activities and cash
utilization, estimated merger integration expenses, the number of high value
candidate disease genes which the combined company may identify, and the
benefits that will result from the merger of Gemini Genomics and SEQUENOM are
forward-looking statements within the meaning of the "safe harbor" provisions
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of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause actual results
to differ materially, including the risks and uncertainties inherent in making
financial and other projections, undertaking and completing a business
combination and successfully integrating the combining companies, the risks and
uncertainties inherent in drug discovery, development and commercialization
efforts, the risks and uncertainties associated with Gemini Genomics and
SEQUENOM's various collaborations with pharmaceutical companies and medical
research institutions, the risks and uncertainties associated with Gemini
Genomics and SEQUENOM's technologies and approaches to drug discovery,
development and commercialization and those of their collaborative partners and
competitors, the risks and uncertainties associated with intellectual property,
including patents and trade secrets, and other risks detailed from time to time
in Gemini Genomics and SEQUENOM's SEC reports, including SEQUENOM's Annual
Report on Form 10-K for the year ended December 31, 2000 and most recent
Quarterly Report on Form 10-Q and Gemini Genomics' Annual Report on Form 20-F
for the year ended March 31, 2001. These forward-looking statements speak only
as of the date hereof. Gemini Genomics and SEQUENOM disclaim any intent or
obligation to update these forward-looking statements.
Furthermore, investors and security holders of SEQUENOM are urged to read the
Proxy Statement regarding the proposed merger when it becomes available. It will
contain important information about the transaction. Investors and securities
holders may obtain a free copy of the Proxy Statement when it is available and
other documents filed with the Securities and Exchange Commission at the web
site at www.sec.gov. The Proxy Statement and these other documents may also be
obtained for free from SEQUENOM.
SEQUENOM and its executive officers and directors may be deemed to be
participants in the solicitation of proxies from stockholders of SEQUENOM with
respect to the transactions contemplated by the transaction agreement.
Information regarding such officers and directors is included in SEQUENOM's
Proxy Statement for its 2001 Annual Meeting of Stockholders filed with the
Securities and Exchange Commission on April 25, 2001. This document is also
available free of charge at the SEC web site, www.sec.gov, and from SEQUENOM.
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WHERE YOU CAN FIND FOR MORE INFORMATION:
Investors and security holders of Sequenom, Inc. are urged to read the Proxy
Statement regarding the proposed merger between Sequenom and Gemini Genomics PLC
when it becomes available because it will contain important information about
the transaction. The Proxy Statement will be filed with the Securities and
Exchange Commission by Sequenom, Inc. Investors and securities holders may
obtain a free copy of the Proxy Statement (when it is available) and other
documents filed with the Commission at the Commission's web site at
http://www.sec.gov. The Proxy Statement and these other documents may also be
obtained for free from Sequenom, Inc., 3595 John Hopkins Court, San Diego,
CA 92121, (858) 202-9000.
Sequenom, Inc. and its executive officers and directors may be deemed to be
participants in the solicitation of proxies from stockholders of Sequenom, Inc.
with respect to the transactions
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contemplated by the transaction agreement. Information regarding such officers
and directors is included in Sequenom, Inc.'s Proxy Statement for its 2001
Annual Meeting of Stockholders filed with the Securities and Exchange Commission
on April 25, 2001. This document is available free of charge at the Securities
and Exchange Commission web site at http://www.sec.gov. and from Sequenom, Inc.
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