NORTHBROOK, Ill., May 13, 2008 (PRIME NEWSWIRE) -- Nanosphere, Inc. (Nasdaq:NSPH), a leader in the development and commercialization of advanced molecular diagnostics systems, today reported financial results for the first quarter ended March 31, 2008.
During the first quarter of 2008, Nanosphere made significant progress with customer adoption of its diagnostic platform and development of additional assays to expand the test menu of the Verigene(r) System.
"We continue to achieve our growth objectives by expanding our customer base as well as advancing the development of new products," said William Moffitt, Nanosphere's president and chief executive officer. "With additional tests coming through the commercialization pipeline, we expect to increase the value of the Verigene System for our customers, further underscoring the decision they made to adopt our technology. Moreover, since receiving FDA clearance on our first two tests last fall, we have taken a disciplined approach to rolling out these products to ensure customer validation of the advantages of the Verigene platform."
Revenue from sales of the Verigene System and test cartridges during the first quarter of 2008 increased sequentially to $303,000 from $51,000 in the fourth quarter of 2007. Total revenue during the first quarter of 2008 increased to $576,000, compared with $188,000 for last year's December quarter and $270,000 for the first quarter of 2007. Non-product revenue was derived from government grants and contracts.
Since receiving FDA clearance to market the Verigene System last fall, Nanosphere invested in scaling up manufacturing capabilities to meet customer demand for products and to provide for increased capacity to support new product commercialization. As a result of additional investment in new product development, R&D expense increased from $4.9 million in the first quarter of 2007 to $5.8 million in the first quarter of 2008.
Sales, general and administrative expenses increased from $2.2 million in the first quarter of 2007 to $3.4 million in the first quarter of 2008, primarily due to stock compensation and public company compliance expenses, including legal, auditing and other consulting fees. The increase in operating expenses in the first quarter of 2008 resulted in a loss from operations of $9.0 million, compared with $6.9 million in the first quarter of 2007.
Conference Call Details
The company will hold a live conference call and webcast for investors on Tuesday, May 13, 2008 at 5:00 P.M., Eastern Daylight Time. The teleconference can be accessed by dialing 888-713-4209 (U.S./Canada) or 617-213-4863 (international), participant code 77860716. The call will also be broadcast live over the Internet and can be accessed by interested parties at the Investor Relations tab on the Nanosphere website: www.nanosphere.us. For interested individuals unable to join the call or webcast, a replay will be available through May 27, 2008, by dialing 888-286-8010 or for international calls 617-801-6888, pass code 17835853, or on the company's website.
About Nanosphere, Inc.
Nanosphere develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene(r) System, for direct genomic and ultra-sensitive protein detection. This easy to use and cost effective platform enables simple, low cost and highly sensitive genomic and protein testing on a single platform. Nanosphere is based in Northbrook, IL. Additional information is available at http://www.nanosphere.us.
The Nanosphere, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4344
Except for historical information, the matters discussed in this press release are "forward-looking statements" and are subject to risks and uncertainties. Actual results could differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (i) Nanosphere's ability to develop commercially viable products; (ii) Nanosphere's ability to achieve profitability; (iii) Nanosphere's ability to produce and market its products; (iv) Nanosphere's ability to obtain regulatory approval of its products; (v) Nanosphere's ability to protect its intellectual property; (vi) competition and alternative technologies; and (vii) Nanosphere's ability to obtain additional financing, if and when necessary, to support its operations. Additional risks are discussed in the Company's current filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Nanosphere, Inc.
Statements of Operations
(Unaudited)
Three Month Periods Ended
March 31,
-----------------------------
2008 2007
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(As restated)
REVENUE:
Grant and contract revenue $ 272,612 $ 223,258
Product sales 303,404 46,645
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Total revenue 576,016 269,903
COSTS AND EXPENSES:
Cost of product sales 349,429 15,179
Research and development 5,842,195 4,941,108
Sales, general, and administrative 3,408,898 2,177,140
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Total costs and expenses 9,600,522 7,133,427
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Loss from operations (9,024,506) (6,863,524)
OTHER INCOME (EXPENSE):
Change in fair value of convertible
derivative liability -- --
Change in fair value of preferred
stock warrants -- 102,987
Foreign exchange loss (24,410) --
Interest expense -- related party -- --
Interest expense (585,037) (259,908)
Interest income 932,219 384,078
------------- -------------
Total other income (expense) 322,772 227,157
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NET LOSS (8,701,734) (6,636,367)
Accumulated convertible preferred
stock dividends -- (1,490,517)
Convertible preferred stock
redemption value adjustment -- (608,940)
------------- -------------
NET LOSS ATTRIBUTABLE TO COMMON STOCK $ (8,701,734) $ (8,735,824)
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Net loss per common share --
basic and diluted $ (0.39) $ (9.37)
Weighted average number of common
shares outstanding --
basic and diluted 22,192,170 932,646
Nanosphere, Inc.
Condensed Balance Sheets
(Unaudited)
March 31, December 31,
2008 2007
------------- -------------
Cash and cash equivalents $104,206,766 $114,312,573
Other current assets 3,267,920 2,674,205
------------- -------------
Total current assets 107,474,686 116,986,778
Net property and equipment 6,833,247 7,033,597
Intangible assets - net of
accumulated amortization 4,930,082 4,930,752
Other assets 155,370 163,553
------------- -------------
Total assets $119,393,385 $129,114,680
============= =============
Current liabilities 8,710,297 9,301,903
Long term liabilities 6,502,382 7,462,237
Convertible preferred stock -- --
Total stockholders' equity (deficit) 104,180,706 112,350,540
------------- -------------
Total liabilities and
stockholders' equity $119,393,385 $129,114,680
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