EXHIBIT 99.1
[ENZO LOGO] NEWS
RELEASE
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Enzo Biochem, Inc.
527 Madison Avenue
New York, NY 10022
FOR IMMEDIATE RELEASE
ENZO BIOCHEM REPORTS RESULTS FOR FISCAL 2007
SECOND QUARTER AND SIX MONTH PERIODS
NEW YORK, NY, March 12, 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 operating results for its second fiscal quarter for the period ended
January 31, 2007.
Revenues for the fiscal 2007 second quarter were $10.6 million, a 5%
increase compared to $10.1 million in the corresponding year-ago period.
Revenues increased primarily as a result of higher sales at Enzo Clinical Labs.
Gross profit, including royalty income, totaled $6.2 million, compared with $6.3
million a year ago.
Net loss for the period amounted to $4.9 million, or $0.14 per share,
compared with a net loss of $4.4 million, or $0.14 per share, in the
corresponding year-earlier quarter. The net loss increased as a result of higher
research and development expense, principally reflecting increased clinical
trial activity at Enzo Therapeutics, which increased 29% to $2.4 million, and
higher legal expenses, due to patent litigation and protection of the Company's
intellectual property estate, which increased 20% to $1.9 million. The results
were impacted by $700,000 in other income relating to a payment by a former
distributor of Life Sciences.
At Enzo Clinical Labs, fiscal second quarter revenues totaled $9.0
million, an increase of $1.0 million over the year-ago second quarter levels.
Enzo Clinical Labs' operating results improved by $0.5 million, to a loss for
the quarter of $100,000, compared with an operating loss of $600,000 a year ago.
Improvements in selling, general and administrative expenses and the provision
for uncollectible accounts contributed to these results. During the quarter,
Enzo Clinical Labs, as a result of new payor agreements, began to experience an
increase in specimen count.
Enzo Life Sciences' revenues, including royalties, were $1.6 million,
compared to $2.1 million a year ago. Results were impacted by continued
competition in the industry and litigation-related activities. These were
partially offset by increases in royalty income relating to an on-going
licensing agreement. Operating costs in the quarter remained in line with those
of the year-ago period. Inclusive of the partial payment from a former
distributor, operating profits increased to $0.6 million, compared to $0.4
million in the year-ago period.
For the six months ended January 31, 2007, revenues amounted to $21.0
million, compared with $20.3 million a year ago. Gross profit, including royalty
income, totaled $12.5 million, compared with $12.4 million in the corresponding
year-ago period. The net loss for the first half amounted to $6.1 million, or
$0.18 per share, compared to net loss of $7.7 million, or $0.24 per share a year
ago.
The Company ended the second quarter with cash and cash equivalents of
approximately $111 million, as a result of the sale of common stock to various
institutional investors, resulting in net proceeds of approximately $43 million.
Subsequent to the end of the quarter, Enzo raised an additional $15 million
through the sale of one million shares to an institutional investor. As of
January 31, 2007, working capital amounted to $118 million. Total stockholders
equity amounted to $134 million. Enzo continues to be debt free.
"Our recently completed capital raising activities position Enzo to
make acquisitions to support future growth at Life Sciences and to expand the
development of our therapeutic platforms," said Barry Weiner, President. "In
addition, our strong balance sheet will serve the Company well in litigation
activities designed to protect our intellectual property.
"Meanwhile, we continue to make progress in our therapeutic programs.
Clinical trials at Hadassah Hospital for treatments for Crohn's disease and NASH
are progressing well. Recently, we also announced that we had commenced a Phase
I/II study at UCSF of antisense gene therapy for HIV-1 infected individuals."
During the quarter, the Company's intellectual property estate was
expanded through the issuance of two patents which cover technological
developments applicable in the field of molecular diagnostics. Subsequent to the
end of the second quarter, the Company reported on a favorable ruling in one of
the interference actions that was declared this past October, as Princeton
University, the holder of two of the patents involved, conceded priority.
A CONFERENCE CALL CONDUCTED BY ENZO BIOCHEM, INC. MANAGEMENT WILL TAKE PLACE ON
TUESDAY, MARCH 13, 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 8539569. 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 MARCH 27, 2007. THE REPLAY OF THE CONFERENCE CALL
CAN BE ACCESSED BY
DIALING 1-877-519-4471, AND, WHEN PROMPTED, USE PIN NUMBER 8539569.
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 B and hepatitis C
infection 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
ENZO BIOCHEM, INC.
SELECTED STATEMENT OF OPERATIONS DATA
(unaudited)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JANUARY 31, JANUARY 31,
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2007 2006 2007 2006
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TOTAL REVENUES $10,594 $10,116 $21,037 $20,281
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LOSS BEFORE INCOME TAXES (4,777) (5,098) (5,978) (8,260)
(PROVISION) BENEFIT FOR (75) 659 (120) 536
INCOME TAXES
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NET LOSS ($4,852) ($4,439) ($6,098) ($7,724)
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BASIC LOSS PER SHARE ($0.14) ($0.14) ($0.18) ($0.24)
DILUTED LOSS PER SHARE ($0.14) ($0.14) ($0.18) ($0.24)
WEIGHTED AVERAGE COMMON SHARE-BASIC 34,486 32,200 33,382 32,179
WEIGHTED AVERAGE COMMON SHARE-DILUTED 34,486 32,200 33,382 32,179
SELECTED BALANCE SHEET DATA
(IN THOUSANDS)
JANUARY 31, 2007 JULY 31, 2006
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(unaudited)
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CASH AND CASH EQUIVALENTS $110,916 $69,854
WORKING CAPITAL $118,264 $80,161
STOCKHOLDERS' EQUITY $133,592 $95,587
TOTAL ASSETS $141,455 $101,524
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CONTACT:
For: Enzo Biochem, Inc.
Steve Anreder, 212-532-3232 Or Ed Lewis, CEOcast, Inc., 212-732-4300