EXHIBIT 99.1
[ENZO LOGO] news
release
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ENZO BIOCHEM, INC.
527 MADISON AVENUE
NEW YORK, NY 10022
FOR IMMEDIATE RELEASE
CONTACT: STEVE ANREDER
(212) 532-3232
ENZO BIOCHEM REPORTS OPERATING RESULTS
FOR FISCAL 2004 SECOND QUARTER
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FARMINGDALE, NY, March 16, 2004 -- 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
reported operating results for the second fiscal quarter ended January 31, 2004,
and improved sequential performance at Enzo Life Sciences.
Reflecting principally the impact of decreased research products
shipped by Enzo Life Sciences, operating revenue for the second fiscal quarter
of 2004 amounted to $11.0 million, compared with $13.1 million in the
corresponding year-ago period, and gross profit amounted to $8.1 million,
compared with $10.4 million in the corresponding year-ago period. The net loss
for the second fiscal quarter amounted to $1.5 million, or ($0.05) per diluted
shared, compared with a year-ago net profit of $1.4 million, or $0.05 per share.
For the first fiscal half of 2004, operating revenue declined 30.1%,
to $21.3 million. Gross profit for the six-month period ended January 31, 2004
totaled $15.7 million, compared with $24.4 million in the corresponding
year-earlier period. The fiscal 2004 first half net loss amounted to $1.8
million, or ($0.06) per diluted share, compared with a net profit in the
corresponding year-ago period of $5.1 million, or $0.17 per share.
The balance sheet remained strong. At January 31, 2004, working capital
amounted to $97 million. Cash and cash equivalents, plus marketable securities,
exceeded $75 million.
"Our Company continues to make progress," said Barry W. Weiner,
President. "Direct sales of research products, including our line of labeling
and detection products for the genomics market, are increasing and the
sequential performance is improving. Investments at Enzo Clinical Labs to
further expand higher margin esoteric diagnostic tests are having a favorable
impact. Enzo Therapeutics is currently conducting two clinical trials, and is
preparing for multiple clinical trials for hepatitis B, hepatitis C, HIV, and
Crohn's disease, based on several of the Company's therapeutic platforms.
Preclinical research continues on a large number of other promising therapeutic
modalities. We are concentrating on keeping expenses in line despite our broad
scale activities in marketing, R&D and clinical investigation, as well as on the
legal front, while remaining highly liquid and financially sound. We expect
improved results in the periods ahead."
In the second fiscal quarter of 2004, research and development expenses
increased to $2.3 million, from $1.6 million in the corresponding year-ago
period, due chiefly to the
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Enzo Biochem, Inc. - Page 2
investigational therapeutic trials underway. Selling, general and administrative
expenses increased $0.7 million, to $3.9 million, as the Company's direct
selling program aimed at the genomics market is being implemented. In the
quarter ended January 31, 2004, legal expenses, which the Company views as an
investment to protect its patent estate, amounted to $1.8 million, compared with
$1.6 million a year ago, an increase of approximately 15%. Results benefited
from a fiscal 2004 second quarter tax benefit, compared to a year-ago tax
expense.
Revenues at Enzo Clinical Labs remained equal to a year ago, despite
severe winter weather in its metropolitan New York marketing territory, which
resulted in approximately 10 days during which specimen collections were
unusually low. Higher priced esoteric tests increased during the period. The
Clinical Lab represented 64% of total revenues in the fiscal 2004 second
quarter, compared with 54.1% in the similar year-ago period. Gross profit was
off slightly, to $4.5 million, compared with $4.8 million last year. The
increase of approximately $1.1 million in the provision for uncollected accounts
receivable reflects recent trends indicating decreased collection rates from
certain third party payors, in addition to a change in the mix of payors. The
Company continues to invest in new esoteric diagnostic equipment which is
expected to further differentiate the Clinical Labs services in its highly
competitive market, yield higher prices and benefit future results.
Enzo Life Sciences, in the second fiscal quarter of 2004, continued to
be adversely affected by its decision to terminate a contract with Affymetrix,
Inc., against which it has instituted legal action. The Company's decision to
field a direct sales force to market its proprietary labeling and detection
products has begun to yield results. On a sequential basis, compared to the
preceding first quarter of fiscal 2004, research product sales increased
approximately 44%, and gross profit was $ 3.6 million, compared with $2.4
million. Subsequent to the second fiscal quarter of 2003, sales by the Company
to Affymetrix ceased and, therefore future quarterly comparisons of our results
should be more reflective of the Company's continuing efforts.
Last week, Enzo Therapeutics reported early interim results for
Alequel(TM), the Company's investigational therapeutic modality for management
of Crohn's disease. To date, of the 19 evaluable subjects who completed the
15-week treatment period, with or without concomitant anti-inflammatory
medication, 71% of those who received Alequel(TM) achieved clinical remission,
compared to 25% of those who received a placebo. In addition, of those same
subjects, 71% of those receiving the Company's investigational therapeutic
showed a clinical response, compared with 42% who received a placebo. Quality of
life, an evaluation of health perception and function showed a mean improvement
of 45% in those subjects who received Alequel(TM), compared to an improvement of
9% among the placebo group. An expanded study is planned to enlarge the
statistical base and to determine the duration of the effects of the treatment.
The Phase I/II study of Enzo Therapeutics' STEALTH VECTOR(R) HGTV43(TM)
gene construct for HIV infection has been initiated at New York Presbyterian
Hospital-Weill Cornell Medical College. In addition, plans for a multi-site
Phase II study of EHT899, the Company's immune regulation medicine for hepatitis
B infection, are moving forward as an in-house capability to manufacture EHT899
is nearing completion.
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Enzo Biochem, Inc. - Page 3
Last month, Enzo reported that the Company acquired the assets of
OraGen Corporation, a private biotechnology company specializing in immune
regulation technologies. "This acquisition will broaden Enzo's capabilities in
developing immunological therapies for infectious diseases, including hepatitis
B", said Barry Weiner.
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. The Company's proprietary labeling and detection products for gene
sequencing and genetic analysis, with approximately 200 patents worldwide, are
sold to the life sciences market throughout the world. 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
hepatitis B and hepatitis C infection and for Crohn's disease. The Company also
holds a patent covering a method and materials for correcting point mutations or
small insertions or deletions of genetic material that would allow for editing
and correcting certain abnormalities in genes. 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.
A CONFERENCE CALL CONDUCTED BY ENZO BIOCHEM, INC. MANAGEMENT WILL TAKE
PLACE ON TUESDAY, MARCH 16, 2004 AT 8:30 A.M. (ET). IT CAN BE ACCESSED BY
DIALING 877-692-2086. INTERNATIONAL CALLERS CAN DIAL 973-582-2749. YOU MAY ALSO
LISTEN OVER THE INTERNET AT WWW.VCALL.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 THROUGH MIDNIGHT MARCH 28,
2004, SHORTLY FOLLOWING THE LIVE CALL. FOR REPLAY, DIAL 877-519-4471
(973-341-3080 INTERNATIONALLY). YOU WILL BE PROMPTED FOR PIN NUMBER 4585101.
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Enzo Biochem, Inc. - Page 4
ENZO BIOCHEM, INC.
SELECTED STATEMENT OF OPERATIONS DATA
Six Months Ended Three Months Ended
January 31, January 31,
2004 2003 2004 2003
(Unaudited) (Unaudited)
(IN THOUSANDS EXCEPT PER (IN THOUSANDS EXCEPT PER
SHARE DATA) SHARE DATA)
Operating revenues $21,300 $30,468 $11,028 $13,112
(Loss) income before benefit (provision) for
income taxes ($3,572) $8,417 ($2,755) $2,370
Benefit (provision) for income taxes
$1,793 ($3,283) $1,300 ($924)
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Net (loss) income ($1,779) $5,134 ($1,455) $1,446
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Basic (loss) income per share ($0.06) $0.17 ($0.05) $0.05
Diluted (loss) income per share ($0.06) $0.17 ($0.05) $0.05
Common Share - Basic 30,022 29,887 30,036 29,889
Common Share - Diluted 30,022 30,528 30,036 30,561
ENZO BIOCHEM, INC.
SELECTED BALANCE SHEET DATA
January 31, 2004 July 31, 2003
(IN THOUSANDS) (IN THOUSANDS)
(Unaudited) (Audited)
Cash and marketable securities $75,116 $78,422
Working capital $96,981 $97,724
Stockholders' equity $108,382 $109,381
Total Assets $113,592 $115,878
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