EXHIBIT 99.1
[ENZO LOGO] NEWS
RELEASE
============
ENZO BIOCHEM, INC.
527 MADISON AVENUE
NEW YORK, NY 10022
FOR IMMEDIATE RELEASE
ENZO BIOCHEM REPORTS RESULTS
FOR FISCAL 2006 AND FOURTH QUARTER
NEW YORK, NY, October 13, 2006 -- 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 three and twelve months ended July 31, 2006.
"Fiscal 2006 was a year that was marked by numerous accomplishments for
Enzo and reflected the continued investments in our life sciences business,
therapeutic development programs and clinical laboratory" said Barry Weiner,
President. "These investments, which impacted the results, have already yielded
tangible benefits. Among others, benefits are reflected in our expanded
intellectual property coverage in the rapidly growing genomics and molecular
diagnostics fields. Also, we have made signifcant strides in strategically
positioning all three of our units in alignment with the emerging new trends in
the healthcare industry."
"During Fiscal 2006, Enzo received three important patents covering
fundamental technologies in the areas of nucleic acid labeling, the design of
microarrays and processes for producing therapeutic proteins and RNA in living
cells. Additionally, the Company was granted an interference in the area of DNA
amplification. Enzo augmented its senior management group with the addition of
two executives with extensive experience in the life sciences and finance
fields. Enzo Therapeutics reported continued progress on several fronts, and has
multiple projects in clinical trials. We have acquired and are renovating a new
manufacturing and research facility for Enzo Life Sciences and Therapeutics. We
are also focusing on new licensing agreements that will materially enhance our
product mix and strengthen our competitive position. Additionally, we recently
announced agreements with UnitedHealthcare and Aetna insurance providers to
increase the market opportunities for Enzo Clinical Labs.
"Over the past fiscal year, the Company invested in developing and
protecting its intellectual property portfolio resulting in a significant
increase in legal fees. We have made progress with outstanding litigations as
reflected by the recently announced settlement with Sigma-Aldrich. The results
of this settlement will be reflected in our first quarter fiscal 2007 results."
Revenues for the fourth quarter were $9.9 million, compared with $10.9
million in the corresponding year-ago period. For the full year, revenues
totaled $39.8 million, compared with $43.4 million in the prior year. The fourth
quarter loss before tax benefit totaled $5.0 million as compared to a loss of
$3.5 million in the year-ago period. For the full year, the loss before tax
benefit was $17.0 million, compared with income before taxes of $5.2 million
(including the $14 million pre-tax gain from the Digene settlement) a year ago.
The fourth quarter net loss was $4.5
million, or $(.14) per share, compared with a net loss of $2.0 million or $(.06)
per share a year ago. For the full year, the net loss totaled $15.7 million, or
$(.49) per share compared with net income of $3.0 million, or $.09 per share a
year ago. The after-tax gain of the Digene settlement contributed $8.1 million,
or $.25 per share towards net income a year ago. In addition, both the fourth
quarter and the full year 2006 were negatively affected by the inability to
record a full tax benefit on the pre-tax losses incurred.
Results in fiscal 2006 were impacted by litigation expenses of
approximately $7.4 million, compared to $5.5 million in fiscal 2005. Selling,
general and administrative expenses of $25.0 million for 2006 compared to $20.1
million for 2005 reflecting increased outlays of $1.2 million for corporate
governance and $1.5 million in compensation expense (non-cash) as a result of
the adoption of SFAS 123(R). While research and development expenses for the
year declined 7%, to $7.9 million, the Company increased its clinical trial
related costs by $1.0 million, which was offset by reductions in other expenses.
Aided by improved billing and collection procedures, the provision for
uncollectible accounts receivables declined for the year by 27%, or $1.3
million.
Results for the quarter were impacted by an overall increase in
expenses of $0.9 million from the comparable period the previous year. The
expenses that increased were consistent with the year, discussed above, except
that research and development expenses increased by $0.5 million over the prior
year period due to increased clinical trial related costs offset by a 45%
reduction or $0.6 million in the provision for uncollectible accounts
receivable.
On July 31, 2006, working capital exceeded $80 million, and cash and
cash equivalents approximated $70 million. These figures are after giving effect
to a $3.2 million capital expenditure for the acquisition of a new building that
will become the new Life Sciences and Therapeutics operating facility.
Enzo Clinical Labs' full year revenue was $31.9 million, compared to
$32.9 million last year. Operating income declined to $0.1 million, from $2.8
million a year ago. At Enzo Life Sciences, reflecting competitive pricing
conditions, total revenues for the year were $7.9 million, compared with $10.5
million last year. The operating loss at Life Sciences amounted to $0.2 million,
compared to operating income in the prior year of $14.6 million (which included
a $14.0 million gain from the Digene settlement). A new licensing strategy and
business development program is being implemented at Enzo Life Sciences to
improve operating results going forward. Enzo Therapeutics incurred a loss of
$4.2 million in 2006 versus a loss of $3.1 million in 2005 reflecting expanded
clinical trial activity.
Enzo Therapeutics is currently conducting four clinical trials. A Phase
I/II study of our STEALTHVECTOR(R)HGTV43(TM) construct for managing HIV-1
infection, which is designed to increase the percentage of engineered cells in
circulation, is enrolling subjects. An expanded Phase II study of Alequel(TM),
the Company's proprietary immune regulation drug for treating Crohn's disease is
underway as is a Phase II study of EGS21, our small molecule immune regulation
therapy. EGS21 is being evaluated as a possible enhancement for Alequel. In
addition, a Phase II study of EGS21 for treating non-alcoholic steatohepatitis
(NASH) is currently enrolling subjects. Protocols are being prepared for a Phase
I/II clinical trial of B27PD, the Company's immune regulation drug for
autoimmune uveitis, with the objective of conducting trials in both the U.S. and
Europe. Additionally, we have a pipeline of compounds in pre-clinical studies
involving bone growth, glucose levels and compounds to inhibit tumor
proliferation in both IN VITRO and IN VIVO animal models of colon cancer.
A CONFERENCE CALL CONDUCTED BY ENZO BIOCHEM, INC. MANAGEMENT WILL TAKE
PLACE ON MONDAY OCTOBER 16, 2006 AT 8:30 AM E.T. IT CAN BE ACCESSED BY DIALING
1-877-692-2086. INTERNATIONAL CALLERS CAN DIAL 1-973-582-2734. PLEASE REFERENCE
PIN NUMBER 7985202. 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, 2006. THE REPLAY OF THE CONFERENCE CALL
CAN BE ACCESSED BY DIALING 1-877-519-4471, AND, WHEN PROMPTED, USE PIN NUMBER
7985202. 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. The Company's proprietary labeling and detection products for gene
sequencing and genetic analysis 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, uveitis, and for Crohn's
Disease. Pre-clinical research is being conducted 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. 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. The Company owns or
licenses over 200 patents worldwide. 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.
- Table Follows -
Contact:
For: Enzo Biochem, Inc. or Ed Lewis, CEOcast, Inc., 212-732-4300
Steve Anreder, 212-532-3232
ENZO BIOCHEM, INC.
(unaudited)
(in thousands,
except per share data)
Fiscal Year Ended Three Months Ended
July 31, July 31,
---------------------------------- ---------------------------------
2006 NOTES 2005 NOTES 2006 NOTES 2005 NOTES
---------------------------------- ---------------------------------
Total revenues $39,826 $43,403 $9,915 $10,867
--------- ---------- --------- ----------
(Loss) income before income taxes ($17,009) A $5,217 B ($4,955) C ($3,459)
Benefit (provision) for income taxes 1,342 D (2,213) E 449 F 1,467 E
--------- ---------- --------- ----------
Net (loss) income ($15,667) $3,004 ($4,506) ($1,992)
========= ========== ========= ==========
Basic (loss) income per share ($0.49) $0.09 ($0.14) ($0.06)
========= ========== ========= ==========
Diluted (loss) income per share ($0.49) $0.09 ($0.14) ($0.06)
========= ========== ========= ==========
Weighted Average Common Shares:
Basic 32,215 32,097 32,258 32,142
Diluted 32,215 32,763 32,258 32,142
July 31, 2006 July 31, 2005
(in thousands) (in thousands)
----------------- ----------------
Cash, Cash Equivalents and Marketable Securities $69,854 $83,695
Working Capital $80,161 $96,280
Total Assets $101,524 $116,466
Total Stockholders' Equity $95,587 $108,267
NOTES:
A - INCLUDES $1.6 MILLION IN COMPENSATION COSTS RESULTING FROM ADOPTION OF SFAS
123(R)
B - INCLUDES $14.0 MILLION PRE-TAX GAIN ON PATENT LITIGATION SETTLEMENT
C - INCLUDES $.3 MILLION IN COMPENSATION COSTS RESULTING FROM ADOPTION OF SFAS
123(R)
D - REFLECTS AN EFFECTIVE TAX BENEFIT RATE OF 8%
E - REFLECTS AN EFFECTIVE INCOME TAX RATE OF 42%
F - REFLECTS AN EFFECTIVE TAX BENEFIT RATE OF 9%