ZymoGenetics posted 4Q loss narrower than Street view

Date : 02/13/2008 @ 7:03PM
Source : TFN
Stock : Zymogenetics Inc (ZGEN)
Quote : 5.56  0.57 (11.42%) @ 8:00PM
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ZymoGenetics posted 4Q loss narrower than Street view

        SAN FRANCISCO (Thomson Financial) - ZymoGenetics Inc. late Wednesday
reported a fourth-quarter net loss of $38.6 million, or 56 cents a share,
compared with a net loss of $37.1 million, or 55 cents a share, for the
prior-year period. 
    The Seattle-based biotech company said its wider net loss reflects costs
associated with preparation for the Recothrom launch, and the advancement of
clinical stage product candidates.
    Revenue was $20.5 million for the fourth quarter ended Dec. 31, compared
with $4.4 million a year ago.
    The mean estimate of analysts polled by Thomson Financial was for a
per-share loss of 68 cents on revenue of $7 million.
    The company also said a total of 80 positions have been eliminated through
attrition, elimination of unfilled positions and layoffs. The eliminated
positions were mostly in research and, to a lesser extent, in development.
    As a result, the company expects its ongoing annualized operating expenses
to be reduced by roughly $14 million. ZymoGenetics will record a charge of $2.5
million for severance and related costs in the first quarter.
    Zymogenetics expects to report a smaller net loss in 2008, which will be
driven largely by the approval and commercialization of Recothrom, the company
said.
    Total revenue, excluding Recothrom sales, are expected to be in the range of
$35 million to $45 million. The company expects to incur capital expenditures of
roughly $6 million to $8 million, and to expend $40 million to $50 million for
Recothrom inventory build, which it plans to fund largely through debt
financing.
    Shares of ZymoGenetics closed at $9.14.
Gabriel Madway
gm

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