[GRAPHIC OMITTED] ENZO NEWS RELEASE
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ENZO BIOCHEM, INC.
527 MADISON AVENUE
NEW YORK, NY 10022
Monday, June 11, 2007
FOR IMMEDIATE RELEASE
ENZO BIOCHEM REPORTS THIRD QUARTER RESULTS
NEW YORK, NY, June 11, 2007 -- Enzo Biochem, Inc. (NYSE:ENZ), a leading
biotechnology company specializing in gene identification and genetic and immune
regulation technologies for diagnostic and therapeutic applications, today
announced results for its third fiscal quarter and nine months ended April 30,
2007.
Revenues for the quarter advanced 45%, to $14.0 million, compared with $9.6
million in the year-earlier period. The gain reflected a 49% increase in
Clinical Lab revenues, principally resulting from a recently enhanced provider
agreement. Gross profit for the quarter was $7.9 million, compared with $5.7
million in the year-ago period, an increase of 39%. The net loss for the period
was $3.8 million, or $0.10 per share, compared with a year-ago net loss of $3.4
million, or $0.11 per share. Selling, general and administrative expenses were
comparable. Research and Development expenditures increased $0.7 million, or
38%, reflecting more clinical and pre-clinical activities in the therapeutics
division. Legal expenses increased 77% to $3.0 million as a result of increased
activity surrounding the Company's intellectual property portfolio, including
higher litigation costs. The provision for uncollectible accounts receivable
amounted to $1.3 million, compared with $0.5 million a year ago, reflecting
increased volume at Clinical Labs.
Enzo Clinical Labs in the fiscal 2007 third quarter posted revenues of
$11.5 million, up 49% from $7.7 million in the corresponding year-ago period.
Gross profit totaled $6.3 million, compared with $4.4 million a year ago, and
operating income increased to $1.4 million. The improvement reflects the results
of an expanded relationship with a provider resulting in an increased number of
procedures performed.
Enzo Life Sciences generated revenues for the fiscal quarter of $2.4
million, up 28% from the comparable year ago period. Royalty income increased by
$0.8 million to $1.5 million due to initial royalties recorded from Abbott and
the increase in an ongoing royalty arrangement. Offsetting the royalty income
increase was a decline in product sales due to a continuing competitive
environment in the genomics research products area. Costs and expenses were
comparable to the year-earlier period. Operating income was $0.4 million for the
comparable quarter, compared to an operating loss a year ago of $0.02 million.
On June 4th, Enzo Life Sciences completed the acquisition of Axxora Life
Sciences, Inc., which has become a wholly owned subsidiary of Enzo Life Sciences
and is expected to significantly improve activities at Enzo Life Sciences. The
Company will begin to consolidate Axxora's financial results commencing with the
acquisition date. Axxora had revenues of approximately $16 million in calendar
2006. Axxora brings to Enzo broad domestic and international marketing
capabilities, an experienced and proven management team, and a product line that
fully complements Enzo Life Sciences' own proprietary position in the research
field. It is expected to add important strategic leverage to Enzo Life Sciences'
proprietary activities in reagents, and labeling and detection products for gene
sequencing and genetic analysis, in addition to opening to the Company a global
roster of customers that access Axxora's advanced electronic ordering system.
For the nine months ended April 30, 2007, compared to the year ago period,
consolidated revenues increased 17% to $35 million, and the gross profit rose
13%, to $20.5 million. Included was a $2 million gain on a previously announced
settlement with Sigma Aldrich, and a $0.7 million payment from Perkin Elmer, a
former distributor against which a lawsuit remains in force. Interest income
increased by $1.4 million for the nine month period. Net loss amounted to $9.9
million, or $0.29 per share, compared with a net loss of $11.2 million, or $0.35
per share a year ago for the comparable period.
As of April 30, 2007, Enzo had cash and cash equivalents of $120 million,
and working capital of $129 million. Stockholder's equity amounted to $145
million. There is no debt.
"We have made important progress in each of our business units," said Barry
Weiner, Enzo's President. "New customers and expanded relationships at Enzo
Clinical Labs improved operating results. The acquisition of Axxora should
expand our product line and penetration into target markets. We also continue to
progress in important areas to develop our therapeutic platforms."
"In addition, we announced interim data showing that Alequel(TM), an
individualized oral immune regulation preparation, may be an effective treatment
for moderate-to-severe Crohn's disease, providing good clinical remissions and
improved patients' quality of life compared to placebos," added Mr. Weiner. "The
next step is preparation for advanced studies. Additionally, we are moving along
in anticipation of launching the next phase in the evaluation of B27PD, our
therapeutic candidate for the treatment of uveitis, and in enrolling additional
patients for the HIV trials. Enzo also remains actively involved in advancing
its patent rights, and in pursuing interference motions instituted by the U.S.
Patent Office naming our Company as a senior party in the actions. Our Company
continues to take important, aggressive steps forward in each of our businesses,
as recent events underscore."
Some of the recent highlights include:
o The acquisition of Axxora Life Sciences, a global manufacturer and
marketer of life sciences research products, which immediately will
strengthen the Company's Life Sciences division.
o The completion of an agreement between Enzo Life Sciences and Abbott
Molecular, Inc. covering the supply of certain of Enzo's products to
Abbott Molecular for use in their FISH product line, and the signing
of a limited non-exclusive royalty bearing cross-licensing agreement
of patents between both parties.
o Initiation of treatment of the first patient in a Phase I/II clinical
trial of the Company's gene therapy for HIV-1 (Human Immunodeficiency
Virus-Type 1) infection.
o Granting of two new patents in the U.S. complementing and
strengthening existing proprietary labeling products for the genomics
and diagnostics markets.
o Entry of judgment in favor of Enzo Life Science's patent application
for nucleic acid signal amplification over two patents owned by
Princeton University, following Princeton's concession of priority to
Enzo.
o Completion of Direct Placement of one million shares of common stock
which brought total capital raised this fiscal year to $60 million.
A conference call conducted by Enzo Biochem, Inc. management will take
place on Tuesday, June 12, 2007 at 8:30 AM E.T. It can be accessed by dialing
1-888-562-3356. International callers can dial 1-973-582-2700. Please reference
PIN number 8880041. Interested parties may also listen over the Internet at
www.investorcalendar.com. To listen to the live call on the Internet, please go
to the web site at least fifteen minutes early to register, download and install
any necessary audio software. For those who cannot listen to the live broadcast,
a replay will be available approximately two hours after the end of the live
call, through midnight (ET) on June 26, 2007. The replay of the conference call
can be accessed by dialing 1-877-519-4471, and, when prompted, use PIN number
8880041. International callers can dial 1-973-341-3080, using the same PIN
number.
About Enzo
Enzo Biochem is engaged in the research, development and manufacture of
innovative health care products based on molecular biology and genetic
engineering techniques, and in providing diagnostic services to the medical
community. Enzo's Life Sciences division develops, produces and markets
proprietary labeling and detection products for gene sequencing and genetic
analysis. Its catalog of over 300 products serves the molecular biology, drug
discovery and pathology research markets. The Company's therapeutic division is
in various stages of clinical evaluation of its proprietary gene medicine for
HIV-1 infection and its proprietary immune regulation medicines for uveitis,
Crohn's Disease, and NASH (non-alcoholic steatohepatitis), and conducts
pre-clinical research on several candidate compounds aimed at producing new
mineral and organic bone, including technology that could provide therapy for
osteoporosis and fractures, among other applications. Enzo's Clinical Labs
division provides routine and esoteric reference laboratory services for
physicians in the New York Metropolitan area. Underpinning the Company's
technology and operations is an extensive intellectual property estate in which
Enzo owns or licenses over 200 patents worldwide, and has pending applications
for over 180 more. For more information visit our website www.enzo.com.
Except for historical information, the matters discussed in this news release
may be considered "forward-looking" statements within the meaning of Section 27A
of the Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements include declarations regarding
the intent, belief or current expectations of the Company and its management.
Investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve a number of risks and uncertainties
that could materially affect actual results. The Company disclaims any
obligations to update any forward-looking statement as a result of developments
occurring after the date of this press release.
ENZO BIOCHEM, INC.
SELECTED STATEMENTS OF OPERATIONS DATA
ENZO BIOCHEM, INC.
(unaudited)
(IN THOUSANDS, EXCEPT PER
SHARE DATA)
THREE MONTHS NINE MONTHS
ENDED ENDED
APRIL 30, APRIL 30,
2007 2006 2007 2006
---- ---- ---- ----
TOTAL REVENUES $13,960 $9,630 $34,998 $29,910
LOSS BEFORE INCOME TAXES (3,754) (3,793) (9,731) (12,054)
(PROVISION) BENEFIT FOR (79) 357 (199) 896
INCOME TAXES
NET LOSS ($3,833) ($3,436) ($9,930) ($11,158)
BASIC AND DILUTED LOSS
PER SHARE ($0.10) ($0.11) ($0.29) ($0.35)
WEIGHTED AVERAGE 36,630 32,245 34,465 32,201
COMMON SHARES: BASIC
AND DILUTED
SELECTED BALANCE SHEET DATA
(IN THOUSANDS)
APRIL 30, 2007 JULY 31, 2006
(unaudited)
CASH AND CASH EQUIVALENTS $120,024 $69,854
WORKING CAPITAL $129,076 $80,161
STOCKHOLDERS' EQUITY $144,556 $95,587
TOTAL ASSETS $154,458 $101,524
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Contact:
For: Enzo Biochem, Inc.
Steve Anreder, 212-532-3232 Or Michael Wachs, CEOcast, Inc., 212-732-4300
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