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Enzo Biochem Q4 Revenues Up 4 Percent on Increased Lab Services Revenues

NEW YORK (GenomeWeb) – Enzo Biochem reported after the close of the market on Thursday that its fourth quarter revenues rose 4 percent year over year, thanks to an increase in revenues from its clinical laboratory services business.

For the three-month period ended July 31, the molecular diagnostics company reported revenues of $26.6 million, up from $25.7 million a year earlier.

Revenues from the company's clinical lab services business rose to $18.1 million from $17.2 million, while its product revenues stayed flat at $8.1 million. Revenues from royalties and licensing fees fell to $392,000 from $428,000 in the year-ago period.

"Fiscal 2016 was a highly successful year for Enzo Biochem. We solidified our growth opportunities on every front, setting a strong foundation for the future," said Enzo President Barry Weiner in a statement. "Life Sciences' product development emphasis on high profit margin products is paying off with several key approvals awarded in 2016. Enzo Labs came off a strong year with solid forward momentum from its expanding line of innovative molecular diagnostics, especially in the women's health category, and a growing client roster.  The unique combination of our Life Sciences development and marketing team with our Clinical Labs' hands-on testing capabilities, and our deep patent estate, has resulted in a formidable development program to prepare our broad pipeline of products for regulatory approval."

The company's net income for Q4 rose to $36.1 million, or $.77 per share, from $8.4 million, or $.18 per share, a year ago. On an adjusted basis, the company reported a loss per share of $.04.

Enzo's R&D expenses for the quarter stayed relatively flat at $914,000 compared to $916,000 a year earlier. SG&A expenses rose slightly to $11.2 million from $11.0 million. The company also said legal fees for the quarter fell to $700,000 from $1.6 million a year ago.

For the full fiscal year, Enzo said its total revenues rose 5 percent to $102.8 million from $97.6 million in 2015. The increase was due to an increase in lab services revenues, which rose to $70.9 million from $63.4 million a year earlier. Product revenues fell to $30.3 million from $31.7 million in 2015, and revenues from royalties and licensing fell to $1.5 million from $2.5 million.

The firm reported net income of $45.3 million, or $.97 per share, for the year, compared to a loss of $2.3 million, or $.05 per share, in 2015. On an adjusted basis, the company reported a loss of $.20 per share for the year.

R&D costs for the full fiscal year rose to $3.5 million, up from $3.3 million in 2015, and SG&A expenses rose to $43.6 million from $41.1 million a year ago.

Enzo said its legal expenses for 2016 fell 27 percent to $6.4 million.  "By bringing to resolution several court cases, legal expenses have trended lower, though this might change as possible trials could take place in calendar 2017," Weiner said. "Meanwhile, with total patent infringement settlements and licenses in the past 24 months of over $100 million, our financial condition is robust and highly liquid."

Enzo also highlighted its product development program, and the various conditional approvals it received this year from the New York State Department of Health for different tests. These included the AmpiProbe technology platform for high-sensitivity, real-time nucleic acid amplification; the AmpiProbe HCV Assay for the quantitative detection of hepatitis C virus; a Candidiasis Assay aimed at the women's health market; and Enzo Clinical Labs' PLAQPRO Lp-PLA2 Assay for evaluating lipoprotein-associated phospholipase A2 activity, a marker associated with coronary heart disease. 

The company is currently developing tests for Hepatitis B, HIV viral diseases, various cancers, and several infectious diseases related to women's health.

Enzo ended the fiscal year with $67.8 million in cash and cash equivalents.