Thrombotic Thrombocytopenic Purpura

Ciphergen Reports Second Quarter 2007 Financial Results and Business Progress

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"We continue to make progress advancing our clinical development programs and moving our high-value diagnostic tests forward to commercialization," said Gail S. Page, President and Chief Executive Officer of Ciphergen. "We are collaborating closely with The Ohio State University Research Foundation to launch our test for thrombotic thrombocytopenic purpura (TTP). Quest and we are working to validate our test to detect peripheral arterial disease (PAD). Enrollment in our ovarian cancer clinical trial is proceeding on schedule and we continue to expect to submit the test for clearance with the U.S. Food and Drug Administration (FDA) by the end of 2007."

"Later this month we expect to change the name of the Company to Vermillion, Inc., and on August 27 we plan to begin trading under our new Nasdaq stock symbol: VRML. This achievement represents the next step in our transformation to become a leading provider of molecular diagnostic products. Vermillion signifies health, life, passion and our commitment to improving patient health. We believe this provides an excellent new identity for our Company," continued Ms. Page.

In conjunction with the name change, the company will host a conference call on Friday, August 24 at 9:00 a.m. Eastern Time to discuss business progress.

Second Quarter 2007 Financial Results

On November 13, 2006, Ciphergen sold its life science research business to Bio-Rad Laboratories. Going forward the Company does not anticipate having revenue until its diagnostic tests are commercialized. Accordingly, the Company had no revenue in the second quarter of 2007 compared to $5.3 million in the second quarter of 2006.

Total operating expenses for the second quarter of 2007 were $5.9 million compared to $9.5 million in the same period last year. The reduction in operating expenses was due primarily to the elimination of selling and marketing expenses associated with the Company's former life sciences tools business. Included in the second quarter of 2007 general and administrative expense was $600,000 of costs associated with the Health Discovery Corporation license agreement. Also, there was a one time charge of $382,000 related to a reduction in an accounts payable amount Bio-Rad owed to Ciphergen.

The net loss for the second quarter of 2007 was $6.8 million compared to $7.7 million for the same period in 2006. Basic and diluted net loss per share for the second quarter of 2007 was $0.17 per share based on 39.3 million shares outstanding compared to a basic and diluted net loss per share of $0.21 per share for the same period in 2006 based on 36.0 million shares outstanding.

At June 30, 2007, the Company's cash and investments were $9.6 million compared to $13.6 million, at March 31, 2007 and $17.7 million at December 31, 2006. Net cash used in operating activities in the second quarter of 2007 was $5.3 million and $11 million for the first six months of 2007. During the second quarter of 2007, Ciphergen also drew down $1.25 million of its remaining balance on its loan facility with Quest Diagnostics, which indebtedness is forgivable upon accomplishment of certain milestones.

Keywords: Bio-Rad Laboratories Inc., Biosystems Ltd., Biotechnology Business, Biotechnology Company, Ciphergen Biosystems Inc., Clinical Trial Research, Diagnostics, Regulatory Actions, Ciphergen Biosystems Inc.

This article was prepared by Biotech Business Week editors from staff and other reports. Copyright 2007, Biotech Business Week via NewsRx.com.