EXHIBIT 99.1
CONTACT: MAY 5, 2005
Fredrick B. Rolff
Chief Financial Officer (908) 387-1673
SENTIGEN HOLDING CORP. ANNOUNCES FIRST QUARTER RESULTS
PHILLIPSBURG, NJ, May 5, 2005: Sentigen Holding Corp. (NasdaqSC: SGHL), today
reported results for the first quarter ended March 31, 2005.
On February 22, 2005 we sold the Specialty Media Division of our
wholly-owned subsidiary, Cell & Molecular Technologies, Inc. ("CMT") to Chemicon
International, Inc., a wholly-owned subsidiary of Serologicals Corporation
(Nasdaq: SERO). As such the results of this division have been accounted for as
discontinued operations. Our consolidated results of continuing operations
consist of CMT's contract research division, Sentigen Biosciences, Inc. and the
expenses of the parent company.
Consolidated Results of Continuing Operations
Revenues for the three months ended March 31, 2005 were $1,761,516, a 32%
increase over the three months ended March 31, 2004. Our revenues are primarily
attributed to our wholly-owned subsidiary, CMT and accounted for $1,597,704 of
our consolidated revenues for the three months ended March 31, 2005 and a 20%
increase when compared to the three months ended March 31, 2004. The remainder
of the increase on a consolidated basis was due to Sentigen Biosciences'
contract with Technical Support Working Group ("TSWG") an inter-departmental
agency of the federal government which initiated in the third quarter of 2004.
This contract accounted for $163,812 of revenue for the three months ended March
31, 2005.
The loss from continuing operations for the three months ended March 31,
2005 was $551,228 or ($0.07) per share. This compares to a loss from continuing
operations of $1,306,763 or ($0.18) per share for the three months ended March
31, 2004. The decline in loss was primarily due to the absence of stock based
compensation charges for the three months ended March 31, 2005. Such charges
amounted to $648,565 during the three months ended March 31, 2004 and were
attributable to stock option grants to non-employee scientific consultants which
have since expired.
Results of Continuing Operations by Segment
The Company operates through two wholly-owned subsidiaries, CMT and
Sentigen Biosciences. The expenses of the parent company, Sentigen Holding Corp.
are reflected in Corporate.
Cell & Molecular Technologies, Inc. Income from continuing operations
attributable to CMT for the three months ended March 31, 2005 was $296,951
compared to $179,196 for the three months ended March 31, 2004, a 66% increase.
The increase was primarily driven by the increase in revenues discussed above,
offset by an increase in depreciation expense
Sentigen Biosciences. Sentigen Biosciences has been primarily engaged in
the development and commercialization of novel bioassay systems that elucidate
the underlying biology of protein-protein interactions. Sentigen Biosciences has
initially targeted its Tango(TM) Assay System to address the functionalization
of G protein-coupled receptors (GPCRs) for pharmaceutical drug discovery and
development. Sentigen Biosciences has filed patent applications on its Assay
System and it expects to file additional patent applications on this technology
and related matters in the future. Sentigen Biosciences is also devoting a
portion of its effort and resources to the development of a novel molecular
profiling system which, if successful, the Company will attempt to
commercialize.
While we believe our technology capabilities in the Bioscience area are
substantial, up to this point, Sentigen Biosciences has not generated any
significant revenues and, moreover, has incurred quite substantial operating
losses. Although we have completed several pilot research collaborations, we
have not entered into any drug discovery or development agreements, nor can any
assurance be given that we will be able to do so on terms that are acceptable to
us.
Management intends to continually review the commercial validity of the
Tango Assay System, its applicability to functionalizing orphan GPCR's and the
prospects of our proposed new novel molecular profiling system in order to make
the appropriate decisions as to the best way to allocate our limited resources.
Loss from continuing operations attributable to Sentigen Biosciences for
the three months ended March 31, 2005 was $380,871 a 54% decline when compared
to the loss from operations of $820,432 for the three months ended March 31,
2004. The decline was primarily due to the absence of stock-based compensation
costs attributable to scientific consultants as previously discussed.
Corporate. Loss from continuing operations attributable to corporate
holding company expenses for the three months ended March 31, 2005 was $540,387.
This compares to a loss attributable to corporate holding company expenses of
$673,134 for the three months ended March 31, 2004. The decline is primarily
attributable to reduced stock based compensation costs.
Gain on sale of Specialty Media Division
The gain on the sale of the CMT's Specialty Media Division, net of accrued
state and federal income taxes of $889,209 amounted to $4,773,810.
Cash and Working Capital
At March 31, 2005, the Company had $708,875 in cash and cash equivalents,
U.S. Treasury Notes, at market value, of $14,553,678 and working capital of
$13,859,670. On February 22, 2005 we purchased a $5,000,000 face value, 3.125%
treasury note maturing on January 31, 2007 with a portion of the proceeds from
the sale of CMT's Specialty Media Division. It should be noted that we will need
substantial amounts of additional financing to commercialize the research
programs undertaken by us which financing may not be available or if available
may not be on reasonable terms.
SENTIGEN HOLDING CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
INCOME STATEMENT HIGHLIGHTS:
(UNAUDITED)
FOR THE THREE MONTHS ENDED
----------------------------
MARCH 31, MARCH 31,
2005 2004
----------- -----------
Revenue
CMT $ 1,597,704 $ 1,330,217
Sentigen Biosciences 163,812 --
----------- -----------
1,761,516 1,330,217
----------- -----------
Income After Direct Costs
CMT 997,102 804,085
Sentigen Biosciences 64,050 --
----------- -----------
1,061,152 804,085
----------- -----------
Operating income (loss)
CMT $ 296,951 $ 179,196
Sentigen Biosciences (380,871) (820,432)
----------- -----------
Corporate (540,387) (673,134)
----------- -----------
Operating loss $ (624,307) $(1,314,370)
----------- -----------
Loss from continuing operations $ (551,228) $(1,306,763)
Income from discontinued operation, net of tax
(including gain on disposal of $4,773,810) 4,923,322 319,440
----------- -----------
Net income (loss) $ 4,372,094 $ (987,323)
=========== ===========
Basic and diluted loss per share
from continuing operations $ (0.07) $ (0.18)
=========== ===========
Basic and diluted income per share
from discontinued operation $ 0.66 $ 0.05
=========== ===========
Basic and diluted net income (loss) per share $ 0.59 $ (0.13)
=========== ===========
Basic and diluted weighted average of
common shares outstanding 7,471,492 7,455,984
=========== ===========
BALANCE SHEET HIGHLIGHTS:
MARCH 31, DECEMBER 31,
2005 2004
----------- -----------
Cash and cash equivalents $ 708,875 $ 347,560
U.S. treasury notes 14,553,678 9,738,938
Total current assets 16,619,924 12,110,677
Total assets 17,787,066 13,388,743
Current maturities of long term debt $ 155,463 $ 180,698
Current liabilities 2,760,254 2,541,296
Long-term debt 750,630 784,495
Total liabilities 3,510,884 3,325,791
Stockholder's Equity $14,276,182 $10,062,952
THIS NEWS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS
AND UNCERTAINTIES. ALTHOUGH THE COMPANY BELIEVES SUCH STATEMENTS ARE REASONABLE,
IT CAN MAKE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE CORRECT. SUCH
STATEMENTS ARE SUBJECT TO CERTAIN FACTORS THAT MAY CAUSE RESULTS TO DIFFER
MATERIALLY FROM THE FORWARD-LOOKING STATEMENTS. SUCH FACTORS INCLUDE THE RISK
FACTORS DISCUSSED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION, INCLUDING ITS MOST RECENT ANNUAL REPORT ON FORM 10-K, A COPY OF
WHICH MAY BE OBTAINED FROM THE COMPANY WITHOUT CHARGE. THE COMPANY UNDERTAKES NO
OBLIGATION TO PUBLICLY RELEASE RESULTS OF ANY OF THESE FORWARD-LOOKING
STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO
REFLECT THE OCCURRENCE OF UNEXPECTED RESULTS.
About Sentigen Holding Corp:
Sentigen Holding Corp. (NasdaqSC: SGHL) conducts business through two wholly
owned operating subsidiaries, Cell & Molecular Technologies, Inc. ("CMT"), and
Sentigen Biosciences, Inc. CMT provides contract research and development
services to companies engaged in the drug discovery process. Sentigen
Biosciences has been primarily engaged in the development and commercialization
of novel bioassay systems that elucidate the underlying biology of
protein-protein interactions. Sentigen Biosciences has initially targeted its
Tango(TM) Assay System to address the functionalization of G protein-coupled
receptors (GPCRs) for pharmaceutical drug discovery and development. Sentigen
Biosciences has filed patent applications on its Assay System and it expects to
file additional patent applications on this technology and related matters in
the future. Sentigen Biosciences is also devoting a portion of its effort and
resources to the development of a novel molecular profiling system which, if
successful, the Company will attempt to commercialize. For more information on
our companies, please visit their respective websites: http://www.cmt-inc.net
and http://www.sentigen.com.