|
|
|
CRGN: No Sale
Genomics firm denies magazine report
|
Business New Haven
2/5/2001
By: BNH
|
Could local bioscience star CuraGen (NASDAQ: CRGN) be acquired by a larger competitor in the near future?
That's what the folks at tech mag Red Herring seem to think. But in public, at least, CuraGen officials say no sale is in the offing.
In Red Herring's January 29 online edition, the magazine touts a number of "Maybe Boomers," including the Seattle-based biopharmaceutical company Immunex Corp. Of the nation's third-largest biotech firm Red Herring says, "In 2001, expect the company to buy one or more key collaborators, like Abgenix (NASDAQ: ABGX) or CuraGen."
CuraGen officials deny the report, however, saying they are more likely to be in acquisition mode than in selling out.
Furthermore, said CuraGen spokesman Mark Vincent according to published reports, his company has never collaborated with Immunex in the past.
With CuraGen's $476 million in cash on hand as of year's end, Vincent said, "There may be technologies we're interested in acquiring."
CuraGen's bank account will swell during the first quarter of the new year with an $85 million investment from West Haven-based pharmaceutical giant Bayer. The money is coming from a $1.4 billion collaboration between CuraGen and Bayer announced earlier this month (BNH, 1/22).
For the year ended December 31, CuraGen revenues increased 38 percent to $20,838,213, compared to $15,103,517 for fiscal year 1999. Revenue growth resulted primarily from research progress with existing collaborators, and by establishing new collaborations with pharmaceutical and life science companies. During 2000, CuraGen established new collaborations with Gemini Genomics, Monsanto and Ono Pharmaceuticals. It also expanded collaborations with Abgenix, COR Therapeutics and Gemini Genomics.
Also last year, CuraGen received a payment from Genentech for discoveries made across numerous disease areas and extended this collaborative research agreement for two and one half years.
As of December 31, 2000, CuraGen had available cash resources of approximately $476 million. This does not include Bayer's recently announced equity investment, which is expected to close by mid-year.
CuraGen is still cash-flow negative, however. Net loss for 2000 was $26,978,387 (70 cents per common share), compared to $25,762,760 (89 cents per common share) for fiscal year 1999.
|
Go FirstGo PreviousGo
NextGo LastGo
to Index
|
|
