Monogram Biosciences Inc. (MGRM) filed Quarterly Report for the period ended 2009-06-30.
Monogram develops and commercializes innovative products to help guide and improve the treatment of infectious diseases cancer and other serious diseases. The Company\'s products are designed to help doctors optimize treatment regimens for their patients that lead to better outcomes and reduced costs. Monogram\'s technology is also being used by numerous biopharmaceutical companies to develop new and improved antiviral therapeutics and vaccines as well as targeted cancer therapeutics. Monogram Biosciences Inc. has a market cap of $104.8 million; its shares were traded at around $4.55 with and P/S ratio of 1.7.
Highlight of Business Operations:
As a result of the issuance of the 0% Notes, we were required to value and account for certain derivative instruments that are embedded in the Pfizer Note. We elected to early adopt SFAS 159, “The Fair Value Option for Financial Assets and Financial Liabilities” to measure the Pfizer Note as a hybrid debt instrument in its entirety with adjustments to the fair value reflected in the consolidated statement of operations. At the initial adoption of SFAS 159, we recorded a cumulative-effect of a change in accounting principle for the Pfizer Note of $2.2 million, resulting in a fair value of $22.8 million at January 1, 2007. For the six month period ending June 30, 2009, this valuation resulted in a $6.4 million net increase to the carrying value of the Pfizer Note, which is reflected as a non-operating loss in the consolidated statement of operations. As of June 30, 2009, the fair value of the Pfizer Note approximated the amount due upon completion of the tender offer by LabCorp of $25.0 million and has been reclassified from a long-term liability to a current liability in the condensed consolidated balance sheet.
Contract revenue is earned from HIV research grants with the National Institutes of Health (“NIH”), and from other non-product and non-license revenue. For the three months ended June 30, 2009, these sources of revenue were consistent at approximately $0.7 million compared to the corresponding period in 2008. For the six months ended June 30, 2009, these sources of revenue decreased $0.2 million to $1.3 million from $1.5 million for the corresponding period in 2008, primarily due to decreased grant-related activity. Contract revenue may fluctuate from period to period depending upon the phase of the grant or project life cycle. We have an active program of applying for NIH funding and currently have a number of active grants that we believe will support the development of analytical and database tools to facilitate the identification and characterization of drug resistant strains of HIV, and assays that will aid in the pre-clinical and clinical evaluation of the next generation of anti-viral therapeutics.
Research and development. Research and development costs were $6.0 million and $11.9 million, respectively, for the three and six months ended June 30, 2009, compared to $6.2 million and $12.3 million for the corresponding periods in 2008. The $0.2 million and $0.4 million decreases of research and development expenses for the three and six month ended June 30, 2009, respectively, compared to corresponding periods in 2008, were primarily due to increased materials and consultant cost offset by a decrease in personnel costs. The successful development of our products is highly uncertain. Completion dates and research and development expenses can vary significantly for each product and are difficult to predict.
Sales and marketing. Sales and marketing expenses were $3.7 million and $7.7 million for three and six months ended June 30, 2009, respectively, compared to $4.1 million and $8.5 million for the corresponding periods in 2008. The $0.4 million and $0.8 million decreases for the three and six month periods ending June 30, 2009, respectively, compared to the same periods in 2008, were primarily attributed to lower marketing activities and personnel costs. We expect that our sales and marketing expenses for promotional programs as well as for sales and marketing personnel will increase with the commercialization of HERmark and in preparation for the introduction of future oncology products.
General and administrative. General and administrative expenses were $5.5 million and $9.0 million for three and six months ended June 30, 2009, respectively, compared to $4.2 million and $8.7 million for the corresponding periods in 2008. The $1.3 million and $0.3 million increases for the three and six months ended June 30, 2009, respectively, compared to the same periods in 2008, were primarily due to increased legal and other fees with respect to the proposed merger with LabCorp.
Stock-based Compensation. Stock-based compensation expenses related to employee stock option awards and employee stock purchases recognized under SFAS 123R were $0.8 million and $1.5 million for the three and six months ended June 30, 2009, respectively, compared to $1.2 million and $2.2 million for the corresponding periods in 2008. The $0.4 million and $0.7 million decreases in stock-based compensation expenses for the three and six month periods ending June 30, 2009, respectively, compared to the corresponding periods in 2008, were primarily due to a lower fair value per share of stock options granted to employees in 2009 as well as a recovery of expense for unvested cancelled shares.
Rate This Article: |
  |