Welcome to


    BEAVERTON, Ore., Aug. 1 /PRNewswire/ -- Epitope, Inc. (AMEX: EPT)
today reported operating results for the third quarter and first nine
months of its fiscal year.  The company reported a profit of $3.5 million
($ .25 per share, fully diluted) for the quarter.  The current quarter
results include $5.2 million for a license fee and related accrued
interest from the company's marketing partner, SmithKline Beecham (SB).
The fee was triggered by the April decision of the Food and Drug
Administration to approve the company's application for extension of the
expiration date on the company's oral specimen collection device from nine
months to two years from date of manufacture.  During the quarter, the
company also received FDA approval of its OraSure(R) HIV confirmatory test
which permits HIV diagnosis using an oral specimen without a follow-up
blood test.
    "The FDA actions this quarter mean that our oral specimen collection
product line is stronger than ever.  With the approval of extended dating
for the device plus approval of the OraSure Western blot confirmatory
test, we now can offer a complete and attractive alternative which
eliminates the use of blood samples for HIV testing," said Adolph J.
Ferro, president and chief executive officer.  "We closed the quarter with
over $25 million in cash and $1.7 million of orders for delivery of
products in the final quarter of fiscal 1996.  We are making excellent
progress toward achieving our goal of becoming a profitable enterprise."
Ferro noted that sales of the oral specimen collection device to date have
been primarily for insurance risk assessment testing.  Next week,
SmithKline Beecham will launch the product in health care professional
    Sales of medical products were $1.1 million for the current quarter,
an increase of 22% as compared to the third quarter of fiscal 1995.  The
company's oral specimen collection device accounted for revenues of
$695,000, up from $389,000 for the previous year's third quarter.  For the
nine-month period of the current fiscal year, oral specimen collection
device sales were $1.8 million as compared to $718,000 for the first nine
months of fiscal 1995.
    Operating losses were $1.9 million and $5.8 million for the quarter
and nine months ended June 30, 1996, respectively, as compared with the
significantly higher levels of $4.5 million and $13.9 million for the
comparable 1995 periods.  The company divested several loss operations in
1995 and implemented a restructuring program that continues to produce
cost savings.  The cost reductions were augmented by higher sales volumes
and increased gross margins for the company's medical products.

    The Following Recap Highlights Milestones Achieved in Recent Months:

    Dating Extended for Oral Specimen Collection Device
    In April 1996, the FDA approved the Company's application to extend
the expiration date on the Company's oral specimen device from nine months
to two years.  As noted above, the approval resulted in realization of a
license fee of $5 million plus interest income of approximately
$200,000 in its operating results for the quarter ending June 30, 1996.

    HIV Confirmatory Test Approved for Oral Specimens
    In June 1996, the FDA approved an application seeking permission to
market its Western blot confirmatory test for use in HIV-1 testing on
specimens collected by the company's oral specimen collection device.
This action eliminates the need to confirm HIV screening results by means
of a blood sample.  Both screening and confirmation tests may now be
performed on a single oral specimen.

    SmithKline Beecham Plans Launch of the OraSure(R) Oral Fluid Specimen
Collection Device to Professional Markets
    Following FDA approval of the OraSure(R) HIV confirmatory test, SB
announced to the trade that it will commence marketing the OraSure oral
specimen device to healthcare professionals for HIV testing in the U.S. In
preparation for the August 5th launch, SB introduced the product to
attendees at the recent International AIDS Conference in Vancouver,
British Columbia.  SB plans to utilize the services of over 3,000 sales
representatives to market the product.

    Vector Securities Selected to Advise Company on Strategic Alliances
and Financing Alternatives
    In July 1996, the company engaged the services of Vector Securities
International, a prominent investment banking firm that specializes in
advising life sciences and healthcare companies.  Vector will provide
advice and assistance, with respect to developing strategic alliances and
exploring financing alternatives with the objective of enhancing
shareholder value.

    A tabulation of results follows:
(in thousands, except per share data):

Operating Highlights:       Three months ended        Nine months ended
                            6/3 ?   6/30/95       6/30/96   6/30/95
    Revenues                $ 1,272    $ 1,569       $ 4,053   $ 4,378
    Net profit (loss)         3,500     (4,148)           30   (13,283)
    Net profit (loss) per
     share, primary and
     fully diluted          $   .25    $  (.34)      $     -   $ (1.14)
    Average shares
     outstanding, primary
     and fully diluted       13,840     12,339        13,413    11,697

    Selected Balance Sheet Data:
                                                     6/30/96   6/30/95
    Cash and marketable securities                   $25,230   $23,563
    Working capital                                   26,889    24,217
    Convertible notes                                  3,620     3,620
    Shareholders' equity                              28,525    26,771

    Epitope, Inc. is a biotechnology company that develops and markets
medical diagnostic products and, through its agricultural unit, superior
new plant varieties.
    This release includes forward-looking statements which are subject to
factors described in Epitope's Annual Report on Form 10-K for the year
ended September 30, 1995, and other documents filed with the Securities
and Exchange Commission.  These factors include unexpected interruption of
supply or manufacturing operations, changes in its marketing partners'
strategy or emphasis, development of competing products, market acceptance
of oral testing, changes in insurance industry practices, unexpected
delays in obtaining state approvals, changes in federal or state law or
regulations, and changes in Epitope's business strategy.

Source: EPITOPE Inc.

Content of this page is copyright and reprinted here for educational and historical information.
Copyright 2004 - 2018 - Ekim Notnud - All rights Reserved
This site is an unofficial historical site and not affiliated with Epitope, Inc.

  Click for Heirloom Tomato Seed Selection Victory Seed Company Save Seeds - Victory Horticultural Library