Entelos Trading Update
These contracts have not been cancelled, but Entelos anticipates that the reprioritization of these programs will result in a delay in the company's receipt of revenues from these customers with respect to such programs, and in expected follow-on research being delayed into later periods. However, the Company believes that 2007 revenues will still be in line with the level of 2006 revenues. Notwithstanding the delays in these revenues, the Company continues to see significant demand for its products and services from both existing and new customers and therefore remains confident about the strength of its business. Entelos' collaborative pre-clinical and clinical candidate activities are unaffected and their development continues as expected.
"We continue to see significant interest in our technology and services," stated James Karis, president and CEO of Entelos. "However, since our primary customer base, the pharmaceutical industry, is frequently faced with shifts in R&D priorities this can lead, from time-to-time, to fluctuations in our near-term revenue stream. At this time, we do not know how long these delays will last, but we will be reviewing the status of these delays on a quarterly basis. In the meantime, we will be taking actions to align our costs with the now-expected business level. We continue to have a strong customer base and a solid pipeline of new business prospects."
The Company will be releasing its preliminary results for the full year ended 31 December 2006 on Thursday, 12 April 2007. An analyst briefing will be held at 9.30 a.m. on 12 April at Evolution Securities, 100 Wood Street, London, EC2V 7AN.
Entelos, Inc. (www.entelos.com) is a US-based life sciences company building predictive in silico disease models and using "virtual patients" to revolutionize the way medicines are discovered, developed, and utilized. The Company's predictive computer models, known as PhysioLab(R) systems, are used to validate novel drug targets, select and develop compounds, assess safety, optimize clinical trials and combination therapies, reprofile drugs, evaluate in-licensing candidates, and better position existing products in competitive markets. In addition to internal programs, Entelos partners with global pharmaceutical and biotechnology companies and currently provides scientific expertise and models in such areas as cardiovascular disease, asthma, obesity, diabetes and rheumatoid arthritis, and complex physiological processes such as hematopoiesis (anemia), cholesterol metabolism, and skin sensitization.
Jill Fujisaki, +1 650-572-5430
Vice President, Investor Relations
Justine McIlroy or Alex Tweed or Jon Coles, +44 207404 5959
Posted: March 2007