Biosite(R) Diagnostics Incorporated Reports First Quarter 2001 Results

Apr 19, 2001, 01:00 ET from Biosite Diagnostics Incorporated

    SAN DIEGO, April 19 /PRNewswire/ -- Biosite(R) Diagnostics Incorporated
 (Nasdaq: BSTE), a leading provider of rapid diagnostic products and antibody
 development technologies, today reported first quarter results for the year
 2001, which were highlighted by increased Triage(R) Cardiac System sales
 driving revenue and income growth:
 
      Operating Report
      -- Total revenues, consisting of net product sales and contract revenues,
         rose to $15.2 million in the first quarter as compared with revenues
         of $12.9 million in the first quarter of 2000.
 
      -- Operating income for the quarter ending March 31, 2001 increased
         26 percent to $1.9 million compared with $1.5 million in the first
         quarter of 2000.
 
      -- Biosite reported net income of $1.5 million, or $.10 per share on a
         diluted basis, in the first quarter of 2001.  In the first quarter of
         2000, the Company reported net income of $1.3 million, or $.09 per
         share on a diluted basis.
 
      -- The Company's gross margin on product sales in the first quarter of
         2001 was 69 percent, unchanged from the first quarter of 2000.
 
      -- Biosite's assets at March 31, 2001 totaled $84.8 million, including
         cash and marketable securities of $44.1 million.  At December 31,
         2000, Biosite's assets were $83.0 million, including $36.2 million in
         cash and marketable securities.  The Company ended the first quarter
         of 2001 with 323 employees.
 
     "We have started 2001 on particularly sound footing," said Kim
 Blickenstaff, president and chief executive officer.  "Our sales force is
 close to being at full strength, cardiac business is strong, initial BNP sales
 are modest but improving with adoptions by major centers and Biosite Discovery
 activity continues to accelerate."
     In the first quarter of 2001, net sales of Biosite's rapid diagnostic
 products accounted for 94 percent of total revenues.  Sales of the Triage
 Drugs of Abuse Panel comprised 61 percent of diagnostic product sales and
 sales of the Triage Cardiac and Triage BNP Systems accounted for 33 percent of
 diagnostic product sales.
     "Market acceptance of our diagnostic for heart attack continues to build,"
 said Blickenstaff.  "We ended the quarter with 450 U.S. customers using the
 Triage Cardiac System and 20 percent of new closes in the first quarter of
 2001 were to centers planning to use our product at the point-of-care.  In
 fact, point-of-care accounts produced 26 percent of Fisher Healthcare's Triage
 Cardiac device sales in the first quarter of 2001.
     "As for BNP, currently 50 customers are purchasing the product.  Among
 these are reordering customers, evaluating customers and clinical study
 sites," said Blickenstaff.  "Highlights for the quarter include the product's
 introduction at the American College of Cardiology Scientific Session in
 March, the recent publication of two papers in the Journal of the American
 College of Cardiology validating the marker's utility and an increase in
 dialogue with medical thought leaders."
     Biosite also reported that in the first quarter of 2001 it initiated
 designs for a clinical trial that is expected to launch in the second quarter
 of 2001.  The trial, termed REDHOT (Rapid ED Heart Failure Outpatient Trial),
 is intended to determine the Triage BNP Test's clinical utility as an aid in
 the management of CHF, thus allowing physicians to make more informed
 decisions related to discharge and admission patients. The two-phase multi-
 center study is expected to have an estimated duration of one year.  Biosite
 hopes to utilize data from the completed study to expand its current claims
 for the Triage BNP Test.
 
     Biosite Discovery
     Revenue generated through Biosite Discovery, the Company's antibody
 development business, accounted for 6 percent of total revenues in the first
 quarter of 2001.  Additionally, as previously reported, three new partners
 were signed in the first quarter.
     "During the first quarter, we added Eli Lilly & Company, Large Scale
 Biology Corporation and Eos Biotechnology to our growing list of
 collaborators," said Gunars Valkirs, Ph.D., vice president, Biosite Discovery.
 "Already, work has commenced on nearly 25 targets delivered by these companies
 and we expect to receive an increasing number of targets in the coming
 quarters.  In the first quarter of 2001, we succeeded in obtaining diagnostic
 rights to a number of Lilly targets, which is encouraging.  Also, interest in
 our antibody development services remains solid.  We currently have ten
 potential collaborators that have requested term sheets and another four that
 have progressed to negotiations for full agreements.
     During the first quarter of 2001, Biosite continued to advance its stroke
 program. Under this program Biosite Discovery is conducting comprehensive
 analysis on 30 potential markers of stroke to determine their diagnostic
 utility.  It was reported that 14 of 30 marker assays have been completed and
 analyzed against approximately 600 patient samples provided by clinical
 collaborators.  Biosite expects to complete work on remaining markers by the
 end of the second quarter of 2001.
     "Data from our analysis is promising," said Valkirs. "So far, we have
 identified two markers that appear to demonstrate good levels of accuracy when
 used together.  In the coming months we will review data from these and other
 markers to determine whether we can define a stroke panel that can be advanced
 to product development status."
     Since its inception in 1988, Biosite Diagnostics Incorporated has been
 dedicated to meeting important clinical needs in emergency medicine by
 speeding the flow of critical diagnostic information.  Through its integrated
 discovery and diagnostics businesses, Biosite seeks to develop rapid
 diagnostic tests that improve clinical and economic outcomes for acute
 diseases.  Biosite's Triage(R) products are used in 45 percent of U.S.
 hospitals and in 40 international markets.  Information on Biosite can be
 found at www.biosite.com.
     A live web cast of Biosite's first quarter conference call for investors
 can be accessed from a link on Biosite's web site at www.biosite.com beginning
 at 5:00 p.m. (Eastern) on April 19, 2001.  The call will be archived for
 15 days.  A telephone replay of the call will also be available for 48 hours
 at (877) 660-6853.  The account number is 6080 and the conference I.D. number
 is 9725.
 
     Except for the historical information presented herein, matters discussed
 in this press release are forward-looking statements that are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from any future results, performance or achievements expressed or
 implied by such statements. Statements that are not historical facts,
 including but not limited to statements that are preceded by, followed by, or
 that include the words "will"; "believes"; "should"; "intends";
 "anticipates"; "plans"; "expects"; "estimates"; or similar statements are
 forward-looking statements.  Risks and uncertainties include risks associated
 with sales, profitability, product discovery and development. Other risks that
 should be considered include, risks associated with expansion or development
 of a direct sales effort in domestic and international markets, and risks and
 expenses associated with patent conflicts, product recalls, manufacturing
 delays, shipment problems, seasonal customer demand, the timing of significant
 orders, changes in reimbursement policies, competitive pressures on average
 selling prices, changes in the mix of products sold, and the other risks
 detailed in the Company's Annual Report on Form 10-K, quarterly reports on
 Form 10-Q and other SEC filings.  The Company disclaims, however, any intent
 or obligation to update these forward-looking statements.  Copies of the
 Company's public disclosure filings are available from the investor relations
 department.
 
     Biosite(R), Immediate Response Diagnostics(R) and Triage(R) are registered
 trademarks of Biosite Diagnostics Incorporated.  Omniclonal(TM), Trans-Phage
 Technology(SM) and the Company's logo are trademarks or service marks of
 Biosite Diagnostics Incorporated.
 
 
                          Biosite Diagnostics Incorporated
                              Statement of Income Data
                       (in thousands, except per share data)
 
                                                         Three months ended
                                                             March 31,
                                                        2001           2000
                                                            (Unaudited)
     Total Revenues:
       Product Sales                                  $14,197        $12,198
       Contract revenue                                   954            715
         Total revenues                                15,151         12,913
 
     Operating expenses:
       Cost of product sales                            4,340          3,837
       Selling, general, and administrative             5,605          4,385
       Research and development                         3,284          3,165
          Total operating expenses                     13,229         11,387
 
     Operating income                                   1,922          1,526
 
     Interest and other income                            575            500
 
     Income before provision for income taxes           2,497          2,026
 
     Provision for income taxes                          (968)          (702)
 
     Net income                                        $1,529         $1,324
 
     Diluted net income per share                       $0.10          $0.09
 
     Diluted shares used in calculating
      per share amounts                                15,317         14,840
 
 
                          Biosite Diagnostics Incorporated
                                   Balance Sheet
                                   (in thousands)
 
                                                      March 31,  December 31,
                                                        2001          2000
                                                     (Unaudited)
     Assets
       Cash, cash equivalents & marketable
        securities                                    $44,092        $36,200
       Accounts receivable                              6,524         11,794
       Inventories                                      6,835          6,445
       Other current assets                             3,852          5,648
         Total current assets                          61,303         60,087
 
     Property, equipment and leasehold
      improvements                                     11,542         10,681
     Patents and license rights, net                    8,354          8,614
     Other assets                                       3,648          3,632
         Total assets                                 $84,847        $83,014
 
     Liabilities and Stockholders' Equity
       Current liabilities                             $6,130         $6,420
       Long-term obligations                            3,603          3,708
       Stockholders' equity                            75,114         72,886
         Total liabilities and
          stockholders' equity                        $84,847        $83,014
 
 

SOURCE Biosite Diagnostics Incorporated
    SAN DIEGO, April 19 /PRNewswire/ -- Biosite(R) Diagnostics Incorporated
 (Nasdaq: BSTE), a leading provider of rapid diagnostic products and antibody
 development technologies, today reported first quarter results for the year
 2001, which were highlighted by increased Triage(R) Cardiac System sales
 driving revenue and income growth:
 
      Operating Report
      -- Total revenues, consisting of net product sales and contract revenues,
         rose to $15.2 million in the first quarter as compared with revenues
         of $12.9 million in the first quarter of 2000.
 
      -- Operating income for the quarter ending March 31, 2001 increased
         26 percent to $1.9 million compared with $1.5 million in the first
         quarter of 2000.
 
      -- Biosite reported net income of $1.5 million, or $.10 per share on a
         diluted basis, in the first quarter of 2001.  In the first quarter of
         2000, the Company reported net income of $1.3 million, or $.09 per
         share on a diluted basis.
 
      -- The Company's gross margin on product sales in the first quarter of
         2001 was 69 percent, unchanged from the first quarter of 2000.
 
      -- Biosite's assets at March 31, 2001 totaled $84.8 million, including
         cash and marketable securities of $44.1 million.  At December 31,
         2000, Biosite's assets were $83.0 million, including $36.2 million in
         cash and marketable securities.  The Company ended the first quarter
         of 2001 with 323 employees.
 
     "We have started 2001 on particularly sound footing," said Kim
 Blickenstaff, president and chief executive officer.  "Our sales force is
 close to being at full strength, cardiac business is strong, initial BNP sales
 are modest but improving with adoptions by major centers and Biosite Discovery
 activity continues to accelerate."
     In the first quarter of 2001, net sales of Biosite's rapid diagnostic
 products accounted for 94 percent of total revenues.  Sales of the Triage
 Drugs of Abuse Panel comprised 61 percent of diagnostic product sales and
 sales of the Triage Cardiac and Triage BNP Systems accounted for 33 percent of
 diagnostic product sales.
     "Market acceptance of our diagnostic for heart attack continues to build,"
 said Blickenstaff.  "We ended the quarter with 450 U.S. customers using the
 Triage Cardiac System and 20 percent of new closes in the first quarter of
 2001 were to centers planning to use our product at the point-of-care.  In
 fact, point-of-care accounts produced 26 percent of Fisher Healthcare's Triage
 Cardiac device sales in the first quarter of 2001.
     "As for BNP, currently 50 customers are purchasing the product.  Among
 these are reordering customers, evaluating customers and clinical study
 sites," said Blickenstaff.  "Highlights for the quarter include the product's
 introduction at the American College of Cardiology Scientific Session in
 March, the recent publication of two papers in the Journal of the American
 College of Cardiology validating the marker's utility and an increase in
 dialogue with medical thought leaders."
     Biosite also reported that in the first quarter of 2001 it initiated
 designs for a clinical trial that is expected to launch in the second quarter
 of 2001.  The trial, termed REDHOT (Rapid ED Heart Failure Outpatient Trial),
 is intended to determine the Triage BNP Test's clinical utility as an aid in
 the management of CHF, thus allowing physicians to make more informed
 decisions related to discharge and admission patients. The two-phase multi-
 center study is expected to have an estimated duration of one year.  Biosite
 hopes to utilize data from the completed study to expand its current claims
 for the Triage BNP Test.
 
     Biosite Discovery
     Revenue generated through Biosite Discovery, the Company's antibody
 development business, accounted for 6 percent of total revenues in the first
 quarter of 2001.  Additionally, as previously reported, three new partners
 were signed in the first quarter.
     "During the first quarter, we added Eli Lilly & Company, Large Scale
 Biology Corporation and Eos Biotechnology to our growing list of
 collaborators," said Gunars Valkirs, Ph.D., vice president, Biosite Discovery.
 "Already, work has commenced on nearly 25 targets delivered by these companies
 and we expect to receive an increasing number of targets in the coming
 quarters.  In the first quarter of 2001, we succeeded in obtaining diagnostic
 rights to a number of Lilly targets, which is encouraging.  Also, interest in
 our antibody development services remains solid.  We currently have ten
 potential collaborators that have requested term sheets and another four that
 have progressed to negotiations for full agreements.
     During the first quarter of 2001, Biosite continued to advance its stroke
 program. Under this program Biosite Discovery is conducting comprehensive
 analysis on 30 potential markers of stroke to determine their diagnostic
 utility.  It was reported that 14 of 30 marker assays have been completed and
 analyzed against approximately 600 patient samples provided by clinical
 collaborators.  Biosite expects to complete work on remaining markers by the
 end of the second quarter of 2001.
     "Data from our analysis is promising," said Valkirs. "So far, we have
 identified two markers that appear to demonstrate good levels of accuracy when
 used together.  In the coming months we will review data from these and other
 markers to determine whether we can define a stroke panel that can be advanced
 to product development status."
     Since its inception in 1988, Biosite Diagnostics Incorporated has been
 dedicated to meeting important clinical needs in emergency medicine by
 speeding the flow of critical diagnostic information.  Through its integrated
 discovery and diagnostics businesses, Biosite seeks to develop rapid
 diagnostic tests that improve clinical and economic outcomes for acute
 diseases.  Biosite's Triage(R) products are used in 45 percent of U.S.
 hospitals and in 40 international markets.  Information on Biosite can be
 found at www.biosite.com.
     A live web cast of Biosite's first quarter conference call for investors
 can be accessed from a link on Biosite's web site at www.biosite.com beginning
 at 5:00 p.m. (Eastern) on April 19, 2001.  The call will be archived for
 15 days.  A telephone replay of the call will also be available for 48 hours
 at (877) 660-6853.  The account number is 6080 and the conference I.D. number
 is 9725.
 
     Except for the historical information presented herein, matters discussed
 in this press release are forward-looking statements that are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from any future results, performance or achievements expressed or
 implied by such statements. Statements that are not historical facts,
 including but not limited to statements that are preceded by, followed by, or
 that include the words "will"; "believes"; "should"; "intends";
 "anticipates"; "plans"; "expects"; "estimates"; or similar statements are
 forward-looking statements.  Risks and uncertainties include risks associated
 with sales, profitability, product discovery and development. Other risks that
 should be considered include, risks associated with expansion or development
 of a direct sales effort in domestic and international markets, and risks and
 expenses associated with patent conflicts, product recalls, manufacturing
 delays, shipment problems, seasonal customer demand, the timing of significant
 orders, changes in reimbursement policies, competitive pressures on average
 selling prices, changes in the mix of products sold, and the other risks
 detailed in the Company's Annual Report on Form 10-K, quarterly reports on
 Form 10-Q and other SEC filings.  The Company disclaims, however, any intent
 or obligation to update these forward-looking statements.  Copies of the
 Company's public disclosure filings are available from the investor relations
 department.
 
     Biosite(R), Immediate Response Diagnostics(R) and Triage(R) are registered
 trademarks of Biosite Diagnostics Incorporated.  Omniclonal(TM), Trans-Phage
 Technology(SM) and the Company's logo are trademarks or service marks of
 Biosite Diagnostics Incorporated.
 
 
                          Biosite Diagnostics Incorporated
                              Statement of Income Data
                       (in thousands, except per share data)
 
                                                         Three months ended
                                                             March 31,
                                                        2001           2000
                                                            (Unaudited)
     Total Revenues:
       Product Sales                                  $14,197        $12,198
       Contract revenue                                   954            715
         Total revenues                                15,151         12,913
 
     Operating expenses:
       Cost of product sales                            4,340          3,837
       Selling, general, and administrative             5,605          4,385
       Research and development                         3,284          3,165
          Total operating expenses                     13,229         11,387
 
     Operating income                                   1,922          1,526
 
     Interest and other income                            575            500
 
     Income before provision for income taxes           2,497          2,026
 
     Provision for income taxes                          (968)          (702)
 
     Net income                                        $1,529         $1,324
 
     Diluted net income per share                       $0.10          $0.09
 
     Diluted shares used in calculating
      per share amounts                                15,317         14,840
 
 
                          Biosite Diagnostics Incorporated
                                   Balance Sheet
                                   (in thousands)
 
                                                      March 31,  December 31,
                                                        2001          2000
                                                     (Unaudited)
     Assets
       Cash, cash equivalents & marketable
        securities                                    $44,092        $36,200
       Accounts receivable                              6,524         11,794
       Inventories                                      6,835          6,445
       Other current assets                             3,852          5,648
         Total current assets                          61,303         60,087
 
     Property, equipment and leasehold
      improvements                                     11,542         10,681
     Patents and license rights, net                    8,354          8,614
     Other assets                                       3,648          3,632
         Total assets                                 $84,847        $83,014
 
     Liabilities and Stockholders' Equity
       Current liabilities                             $6,130         $6,420
       Long-term obligations                            3,603          3,708
       Stockholders' equity                            75,114         72,886
         Total liabilities and
          stockholders' equity                        $84,847        $83,014
 
 SOURCE  Biosite Diagnostics Incorporated