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Enzo Biochem Fiscal Q3 Revenues Fall 20 Percent; Firm Examining Strategic Alternatives

NEW YORK – Enzo Biochem reported after the close of the market on Thursday that its fiscal year 2022 third quarter revenues fell 20 percent year over year due to lighter COVID-19 related testing revenue.

Enzo also said in a statement that it has engaged investment bank Jefferies "to provide advisory services, including the evaluation of strategic alternatives for the company, its Enzo Clinical Lab, and Enzo Life Sciences divisions, and its various assets."

For the three months ended April 30, the diagnostics company reported total revenues of $26.2 million compared to $32.8 million in the year-ago quarter.

Its Q3 Clinical Lab revenues declined 26 percent year over year to $18.6 million from $25.0 million, reflecting a lower services accession count, the firm said. Its Life Sciences revenues declined slightly to $7.6 million from $7.8 million in the year-ago period.

"Over the past months, we undertook key steps designed to increase our efficiency, enlarge our revenue base, and position ourselves for new levels of growth in our Enzo Life Sciences division sales and core diagnostic laboratory services," Enzo CEO Hamid Erfanian said in a statement. "We are on the path for full lab-developed test regulatory submission this year on our molecular platform and added 43 new tests within our clinical lab," he said.

Among Enzo's other Q3 business highlights, the firm received New York State Department of Health approval for its Amiprobe HPV tests, which use PCR to detect 14 high-risk human papillomavirus variants.

The firm also made changes to its leadership team in the quarter. Kara Cannon was named chief operating officer from her previous role as chief commercial officer at Enzo, while David Bench, the firm's current CFO, was named to the additional roles of senior VP, treasurer, and corporate secretary. Enzo also added a head of clinical laboratory sales, a regional sales leader for its Life Sciences division, and a head of quality and regulatory.

The company reported a net loss of $4.9 million, or $.10 per share, compared to a net income of $2.0 million, or $.04 per share, a year earlier. Adjusted loss per share was $.09.

Enzo's Q3 R&D expenses were flat at $1.1 million, while its SG&A expenses declined 6 percent to $11.4 million from $12.1 million in the prior-year quarter.

At the end of the quarter, Enzo had cash, cash equivalents, and marketable securities of $32.1 million.