CARLOS, California, June 30, 2006 - Deltagen, Inc. (Pink Sheets: DGEN), a leading
provider of drug discovery tools to the biopharmaceutical industry, today
reported financial results for the three months ended March 31, 2006.
Revenues: The Company's
consolidated revenues for the three months ended March 31, 2006 totaled $1.879
million. The revenues were primarily attributable to license fees
associated with the provision of knockout mice and related phenotypic data
under its DeltaOneTM program and access
extension fees under its DeltaBase® collaborations. The access periods
under the Company's DeltaBase collaborations expire between June 30, 2006 and
March 31, 2007, and there are no assurances that our DeltaBase collaborators
will continue to pay access extension fees.
No revenues from our NIH contract were recognized and no new delivery
orders were placed by the NIH in the first quarter of 2006. We expect that revenues under the NIH
contract will be highly variable from quarter to quarter. We currently expect to recognize
approximately $3.2 million from the NIH contract in the second quarter of 2006.
Income: The Company had interest
income of $0.100 million for the three months ended March 31, 2006.
expenses for the three months ended March 31, 2006 were $1.548 million.
The expenses were primarily attributable to salaries and other general and
administrative expenses, third-party royalty and commission obligations, and
patent prosecution expenses. Legal and
administrative fees associated with prosecution of the Company's patent
portfolio were $0.373 million for the three months ended March 31, 2006.
Net income before taxes for the three months ended March 31, 2006 was $0.431
Cash Equivalents: As of March 31, 2006, the Company had $10.392 million in
consolidated cash and cash equivalents.
The unaudited consolidated financial statements for the first quarter
of 2006, accompanying notes, and Management's Discussion and Analysis of
Financial Condition and Results of Operations for such period will be posted on
Deltagen's website (www.deltagen.com).
The consolidated balance sheet for 2005 is in the process of being
audited. The Company currently intends
to post the audited 2005 consolidated balance sheet on the Company's website
when the audit has been completed, together with the auditors' opinion, explanation
of adjustments, and revised notes and revised Management's Discussion and
Analysis of Financial Condition and Results of Operations for such period.
The consolidated balance sheet for the first quarter of 2006 reflects
certain expected adjustments to the 2005 consolidated balance sheet made in
connection with the audit. The expected
adjusted 2005 consolidated balance sheet is provided below, which balance sheet
is subject to further changes or adjustments upon completion of the audit.
Deltagen, Inc. is
a leading provider of drug discovery tools to the biopharmaceutical industry.
Deltagen offers access to its extensive inventory of knockout mouse lines and
related phenotypic data, which enhance the efficiency of target validation and
drug discovery. In addition, Deltagen offers target validation data in the
areas of immunology and metabolic diseases. Deltagen's products and programs
have been validated by customers and partners such as Eli Lilly & Co.,
GlaxoSmithKline, Merck & Co., Inc. and Pfizer Inc. For more information on
Deltagen, visit the Company's website at www.deltagen.com.
This press release contains "forward-looking statements,"
including statements about Deltagen's future revenues and operating results,
royalty and milestone revenues, third-party royalty obligations and third-party
licenses and intellectual property, as well as other matters that are not
historical facts or information. These forward-looking statements are
based on management's current assumptions and expectations and involve risks,
uncertainties and other important factors, specifically including those
relating to Deltagen's ability to achieve its operational objectives and
revenue projections and to obtain patent protection for its discoveries, that
may cause Deltagen's actual results to be materially different from any future
results expressed or implied by such forward-looking statements. Information
identifying such important risk factors is contained in "Management's
Discussion and Analysis of Financial Conditions and Results of Operations",
which can be found at Deltagen's website at www.deltagen.com. Deltagen
undertakes no obligation to update or revise any such forward-looking
statements, whether as a result of new information, future events or otherwise.