EXHIBIT 99.1
CONTACT: AUGUST 15, 2005
Fredrick B. Rolff
Chief Financial Officer (908) 387-1673
SENTIGEN HOLDING CORP. ANNOUNCES SECOND QUARTER RESULTS
PHILLIPSBURG, NJ, August 15, 2005: Sentigen Holding Corp. (NasdaqSC: SGHL),
today reported results for the quarter and six months ended June 30, 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). 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 June 30, 2005 were $1,700,199, a 44%
increase over the revenues of $1,117,973 for the three months ended June 30,
2004. Our revenues are primarily attributed to our wholly-owned subsidiary CMT,
which accounted for $1,509,026 of our consolidated revenues for the three months
ended June 30, 2005 and a 28% increase when compared to CMT's revenues for the
three months ended June 30, 2004. The remainder of the revenue increase on a
consolidated basis was due to Sentigen Biosciences' contract with the Technical
Support Working Group ("TSWG") an inter-departmental agency of the federal
government with representatives from the Departments of Defense, State and
Homeland Security, to develop advanced biotechnology for the detection of
explosives and other threats, which initiated in the third quarter of 2004. This
contract accounted for $176,173 of revenue for the three months ended June 30,
2005.
Revenues for the six months ended June 30, 2005 were $3,461,715, a 38%
increase over the $2,508,190 of revenues for the six months ended June 30, 2004.
CMT accounted for $3,106,730 of our consolidated revenues for the six months
ended June 30, 2005 and a 24% increase when compared to CMT's revenues for the
six months ended June 30, 2004. The remainder of the increase on a consolidated
basis was primarily due to Sentigen Biosciences' contract with TSWG. This
contract accounted for $339,985 of revenue for the six months ended June 30,
2005.
The loss from continuing operations for the three months ended June 30,
2005 was ($655,428) or ($0.09) per share. This compares to a loss from
continuing operations of ($752,018) or ($0.10) per share for the three months
ended June 30, 2004. The reduction in loss was due to an increase in the income
from continuing operations of CMT as well as a reduction in the loss from
operations from Sentigen Biosciences.
The loss from continuing operations for the six months ended June 30, 2005
was ($1,206,659) or ($0.16) per share. This compares to a loss from continuing
operations of
($2,058,781) or ($0.28) per share for the six months ended June 30, 2004. The
reduction in loss was primarily due to the decline in stock based compensation
charges for the six months ended June 30, 2005. Such charges amounted to
$697,439 during the six months ended June 30, 2004, compared to $89,080 for the
six months ended June 30, 2005. The decline is attributable to the expiration of
certain stock option grants to non-employee scientific consultants. In addition
to the decline in stock based compensation, CMT's increase in income from
continuing operations also contributed to the reduction in loss from continuing
operations.
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 June 30, 2005 was $233,187
compared to $206,769 for the three months ended June 30, 2004, a 13% increase.
Income from continuing operations attributable to CMT for the six months ended
June 30, 2005 was $530,137 compared to $385,965 for the six months ended June
30, 2004, a 37% increase. The increase was primarily driven by CMT's increase in
revenues, offset by higher direct costs and selling, general and administrative
expenses.
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 devoting a
significant portion of its research effort and resources to the development of a
novel molecular profiling system, which if successful, the Company through CMT
will attempt to commercialize.
While we believe our technology capabilities in the Biosciences 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 June 30, 2005 was ($455,601), a 9% reduction when
compared to the loss from operations of ($500,361) for the three months ended
June 30, 2004. Loss from continuing operations attributable to Sentigen
Biosciences for the six months ended June 30, 2005 was ($836,474), a 37%
improvement when compared to the loss from operations of ($1,320,793) for the
six months ended June 30, 2004. The reduction in loss was primarily due to the
absence of stock-based compensation costs attributable to scientific consultants
as previously discussed, and our contract with TSWG.
Corporate. Loss from continuing operations attributable to corporate
holding company expenses for the three months ended June 30, 2005 was
($504,489). This compares to a loss attributable to corporate holding company
expenses of ($483,873) for the three months ended June 30, 2004, an increase of
4%. The increase was primarily due to compensation and commercial insurance
expenses. Loss from continuing operations attributable to corporate holding
company expenses for the six months ended June 30, 2005 was ($1,044,876). This
compares to a loss attributable to corporate holding company expenses of
($1,157,007) for the six months ended June 30, 2004, a reduction of 10%. The
reduction is primarily due to a decline in professional fees for legal services.
Cash and Working Capital
At June 30, 2005, the Company had $176,673 in cash and cash equivalents,
$14,072,844 in U.S. Treasury Notes, at market value, and $13,338,728 in working
capital. This compares to $347,560 in cash and cash equivalents, $9,738,938 in
U.S. Treasury Notes, at market value, and $9,569,381 in working capital at
December 31, 2004. 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) (Unaudited)
For the Three Months For the Six Months
Ended Ended
June 30, June 30,
-------- --------
2005 2004 2005 2004
---- ---- ---- ----
Revenue
CMT $1,509,026 $1,177,973 $3,106,730 $2,508,190
Sentigen Biosciences 191,173 - 354,985 -
---------- ---------- ---------- ----------
1,700,199 1,177,973 3,461,715 2,508,190
Income after direct costs
CMT 928,728 781,903 1,925,829 1,585,988
Sentigen Biosciences 79,639 - 143,689 -
--------- --------- --------- ---------
1,008,367 781,903 2,069,518 1,585,988
Operating income/(loss)
CMT 233,187 206,769 530,137 385,965
Sentigen Biosciences (455,601) (500,361) (836,474) (1,320,793)
Corporate (504,489) (483,873) (1,044,876) (1,157,007)
--------- -------- ---------- ----------
Operating (loss) (726,903) (777,465) (1,351,213) (2,091,835)
--------- -------- ---------- ----------
Loss from continuing operations (655,428) (752,018) (1,206,659) (2,058,781)
(Loss)/income from discontinued operations,
net of tax (including gain on disposal of
$4,773,810, net of tax for the six
months ended June 30, 2005) (88,200) 242,892 4,835,122 562,332
--------- --------- ---------- ---------
Net (loss)/income $(743,628) $ (509,126) $ 3,628,463 $(1,496,449)
========= ========== -========== ===========
NET INCOME (LOSS) PER SHARE INFORMATION:
- ---------------------------------------
Basic and diluted loss per
share from continuing operations $ (0.09) $ (0.10) $ (0.16) $ (0.28)
========= ========= ========= =========
Basic and diluted net (loss) income per
share from discontinued operations $ (0.01) $ 0.03 $ 0.65 $ 0.08
========= ======== ========= =========
Basic and diluted net (loss) income per share $ (0.10) $ (0.07) $ 0.49 $ (0.20)
========= ========= ========= =========
Weighted average shares outstanding:
Basic and Diluted 7,473,117 7,462,099 7,472,309 7,459,647
========= ========= ========= =========
BALANCE SHEET HIGHLIGHTS:
June 30, December 31,
2005 2004
---- ----
Cash and cash equivalents $ 176,673 $ 347,560
U.S. treasury notes 14,072,844 9,738,938
Total current assets 15,714,129 12,110,677
Total assets 16,784,050 13,388,743
Current maturities of
long term debt 209,809 180,698
Current liabilities 2,375,401 2,541,296
Long-term debt 635,046 784,495
Total liabilities 3,010,447 3,325,791
Stockholder's Equity $13,773,603 $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. 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 devoting a
significant portion of its research effort and resources to the development of a
novel molecular profiling system, which if successful, the Company through CMT
will attempt to commercialize. CMT provides contract research and development
services to companies engaged in the drug discovery process. For more
information on our companies, please visit their respective websites:
http://www.cmt-inc.net and http://www.sentigen.com.