Exiqon reports 2010 second quarter revenue increases 27%

Exiqon A/S (Copenhagen:EXQ) today announced results for the first six months of 2010 ending 30 June 2010. Revenue for the first six months increased 27% to a record DKK 44.8 million. Revenue grew 26% over the same period in the previous year when excluding the impact from currency translation. Operating expenses decreased 27% to DKK 44.6 million. Earnings per share (EPS) grew 54% to DKK -0.71 in the first six months of 2010, versus DKK -1.54 in the same period in 2009 (continued operations).

Highlights:

-- Revenue increased 27% to DKK 44.8 million (DKK 35.4 million). The organic growth in life science research product sales (including Pharma Services) was 58% in the first six months of 2010, when excluding OEM sales and reagent sales associated with license agreements. In the second quarter of 2010, revenue increased 24% to DKK 24.1 million (DKK 19.4 million). The organic growth in life science research product sales (including Pharma Services) was 75% in the second quarter of 2010, when excluding OEM sales and reagent sales associated with license agreements.

-- Operating expenses decreased 27% to DKK 44.6 million (DKK 60.8 million) as a result of the restructuring of Exiqon Life Sciences that was undertaken in 2009 to improve the company's cash flow. In the second quarter of 2010, total operating expenses decreased 23% to DKK 22.6 million compared to DKK 29.5 million in the same period last year.

-- Gross profit improved 86% to DKK 23.5 million (DKK 12.6 million).

-- EBIT improved 56% to DKK -21.1 million (DKK -48.1 million).

-- Net loss from continued operations was DKK 21.4 million (DKK 46.8 million). EPS amounted to DKK - 0.71 (DKK -1.54).

-- On 4 June 2010, Exiqon announced the closing down of operations at Oncotech, Inc. after it was concluded that a divestment could not be achieved.

-- On 21 June 2010, Exiqon announced that it had granted a non-exclusive license to Becton, Dickinson and Company to use Exiqon's proprietary locked nucleic acids (LNA(TM)) technology in defined products for infectious disease diagnostics.

-- On 29 June 2010, Exiqon announced the registration of a capital increase of 3,030,000 new shares with a nominal value of DKK 1 each following which the nominal value of the share capital of Exiqon A/S amounts to DKK 33,335,249 divided into 33,335,249 shares with a nominal value of DKK 1 each.

CEO Lars Kongsbak says: "I am very pleased with the continued strong organic growth and overall reduced costs. With the recent financing round in place, a competitive product offering and a strong pipeline, we remain on track for profitability by 2011."