Announces Near-Term System and Diagnostics Initiatives
CAMBRIDGE, Mass.--(Business Wire)--
Helicos BioSciences Corporation (NASDAQ: HLCS) today announced in its third
quarter Form 10-Q filing that, as previously disclosed, the Company engaged
Thomas Weisel Partners LLC (TWP), a nationally recognized investment bank, to
assist the Company with its evaluation and execution of strategic alternatives.
Based on the Company`s improving standalone prospects and its current market
valuation, the Board of Directors has decided to disengage from discussions
involving a potential sale of the Company at the current time. The Company
continues to work with TWP as a financial advisor in connection with its long
term financing strategy.
Chief Executive Officer Ron Lowy commented: "We have had very positive feedback
from our initial customers. In addition, we are seeing a growing number of novel
discoveries resulting from the Helicos® Genetic Analysis System`s unique
capabilities and have seen an increased interest in clinical applications for
which the Helicos system is uniquely suited. Not only do we have a significant
lead in single molecule sequencing, but we also have established a first-mover
advantage in diagnostics and biomarker discovery using single molecule
sequencing technology. Our recent strategic dialogues have confirmed this."
Founder and Chairman Stan Lapidus, who also founded Cytyc Corporation and Exact
Sciences Corporation, both of which were pioneers in the diagnostics space, will
be giving an on-line symposium in the upcoming weeks on the future of sequencing
in diagnostics. The Company will announce the date and time of this presentation
which will be available on the Company`s website (www.helicosbio.com). In
September, Helicos announced its collaboration with Correlagen Diagnostics,
Inc., a private company focused on developing biomarker and clinical diagnostic
applications in multiple disease areas, including neurology, cardiology,
immunology and metabolic disorders. Mr. Lapidus noted that, "Biomarker discovery
and clinical utilization of single molecule sequencing is developing much faster
than we had anticipated; the existing Helicos system, with its simple sample
preparation, high throughput and lack of biases, typically seen with sample
amplification, is well designed for this purpose."
In addition, the Company today announced that it has begun a series of planned
developments for the Helicos Genetic Analysis System. Mr. Lowy explained, "Now
that the Helicos system has achieved a level of design and performance
stability, we believe the cost of goods for the current Helicos system will be
decreased through a series of meaningful cost reductions targeted at key system
components. As we improve our cost of goods through these initiatives in the
near-term and through the next twelve months, we will have the flexibility to
address the initial cost of the platform for our customers. We also plan on
introducing a series of alternative reagent kits for the Helicos system that are
designed to provide customer flexibility, allow smaller numbers of samples and
reduce the current runtime of the equipment by up to 70%. Helicos plans to start
introducing these kits during the first half of 2010 for both our current and
future installed base with no required changes to the system hardware."
"We currently estimate that with the improvements already incorporated in the
System and several planned improvements to come, the price for sequencing a
human genome using the Helicos system will be reduced by more than half its
current level." Lowy added that: "We believe Helicos is at a critical value
inflection point and that our first-mover advantage is meaningful. Our
discussions with current customers and prospective strategic partners confirm
this view."
About Helicos BioSciences:
Helicos BioSciences is a life science company focused on innovative genetic
analysis technologies for the research, drug discovery, and diagnostic markets.
Helicos' proprietary True Single Molecule Sequencing, tSMS(TM), technology
allows direct measurement of billions of strands of DNA enabling scientists to
perform experiments and ask questions never before possible. Helicos is a
recipient of two $1,000 genome grants and committed to providing scientists the
tools to unlock the era of genomic medicine. The company's corporate
headquarters are located at One Kendall Square, Building 700, Cambridge, MA
02139, and its telephone number is (617) 264-1800. For more information, please
visit www.helicosbio.com.
Certain statements made in this press release that are not based on historical
information are forward-looking statements which are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. This
press release contains express or implied forward-looking statements relating
to, among other things, management's expectations of financial performance,
expectations regarding the prospective value of the commercial, system
performance and technical and scientific achievements and goals discussed in
this press release, estimates of expenses and future revenues and profitability,
product development and marketing plans, and management's plans, objectives and
strategies. These statements are neither promises nor guarantees, but are
subject to a variety of risks and uncertainties, many of which are beyond
Helicos' control, which could cause actual results to differ materially from
those contemplated in these forward-looking statements. In particular, the risks
and uncertainties include, among other things, our ability to sustain and scale
our manufacturing capabilities and the commercialization process for the Helicos
Genetic Analysis System; our history of operating losses and ability to achieve
profitability; the research and development spending levels of academic,
clinical and governmental research institutions and pharmaceutical,
biotechnology and agriculture companies who may purchase our Helicos Genetic
Analysis System; our reliance on third-party suppliers; competition; changing
technology and customer requirements; our ability to operate in an emerging
market; market acceptance of our technology; the length of our sales and
implementation cycles; our dependence on large contracts for the sale and
implementation of our Helicos Genetic Analysis System; failure of our technology
and products; our ability to maintain customer relationships and contracts;
ethical, legal and social concerns surrounding the use of genetic information;
our ability to retain our personnel and hire additional skilled personnel; our
ability to manage our growth while operating with limited resources; our ability
to control our operating expenses; general economic and business conditions; our
expectations regarding the timing of cash receipts from previous system orders;
the scientific and commercial outcome of our placement installations at
reference sites; our expectations regarding the timing and success of the
introduction of our paired-read technology to customers; our expectations
regarding the utility of single molecule sequencing in the diagnostics space;
the outcome of our planned developments for the Helicos system and kits and
ability to achieve the system cost reductions and kit introductions discussed in
this press release; the outcome of our pursuit of financing strategies and other
financing alternatives; our ability to obtain capital when desired on terms
deemed acceptable to us; and the volatility of the market price of our common
stock. The Company's failure to raise capital as and when needed would have a
material negative impact on its financial condition and would have a material
adverse impact on the viability of the Company as a going concern. Existing and
prospective investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. Helicos
undertakes no obligation to update or revise the information contained in this
press release, whether as a result of new information, future events or
circumstances or otherwise. For additional disclosure regarding these and other
risks faced by Helicos, see the disclosure contained in Helicos' public filings
with the Securities and Exchange Commission.
Investor Relations:
Helicos BioSciences Corporation
Susan Shepard, 617-264-1850
Copyright Business Wire 2009
