SOURCE: DNAPrint Genomics, Inc.

March 22, 2007 07:00 ET

DNAPrint™ Genomics Reports Financial Results for Fourth Quarter and Full-Year 2006

SARASOTA, FL -- (MARKET WIRE) -- March 22, 2007 -- DNAPrint™ Genomics, Inc. (OTCBB: DNAG) today issued a commentary on its financial results for the fourth quarter and for the fiscal year ended Dec. 31, 2006, which were filed on March 15, 2007.

Revenue for the fourth quarter of 2006 was $525,646, an increase of 42.4% over revenue of 369,033 for the fourth quarter of 2005. Revenue for the year ended Dec. 31, 2006, was $2.4 million, an increase of 90.7% over revenue of 1.3 million for fiscal 2005.

"We are pleased to have achieved this growth in revenues," stated DNAPrint™ Genomics President and Chief Executive Officer Richard Gabriel. "The increase over revenues from 2005 is directly attributable to an approximate 330% increase in revenue from our genotyping business, which derives mainly from the purchase of Ellipsis Biotherapeutics in late 2005, and 73% increase in revenue from Ancestry products."

2006 Highlights and Milestones

--  Q4 revenue of $525,000, an increase of 42% over last year
    
--  Year-end revenues of $2.4 million, an increase of 91% over 2005
    
--  Q4 Genotyping revenue of $170,000, an increase of 643% over Q4 2005
    
--  Full-year Genotyping revenue of $770,000, an increase of 330% over
    full-year 2005
    
--  Full-year revenue of $1.6 million for Ancestry products, an increase
    73% over 2005
    
--  Invested $6.4 million in research and development of our products
    during 2006
    
--  Two patents granted and significant progress made on research into new
    therapies for statin-induced myalgia and depression
    
--  Investment in Biofrontera shares were recorded at $7.9 million at
    yearend as Biofrontera went public during October 2006
    

In 2006, research and development costs increased to $6,427,115 from $2,122,383 in 2005, an increase of 202.8%. The increase in research and development expense resulted primarily from research in various projects in the development pipeline, including DNAPrint™ Pharmaceutical's EPO project, the ADHD project, the Statinome project, the CD59 diabetes project, the post-operative nausea and vomiting (PONV) project and various amounts invested in research samples used to expand the current product lines.

"We are certainly pleased that so many of our existing products have found acceptance in the marketplace," stated Mr. Gabriel. "We are particularly excited that two patents were granted to DNAPrint™ during 2006 -- one for identifying links between gene sequences and medical traits and another for the discovery of a genetic marker for statin-induced myalgia. We look forward to the successful completion of other research projects underway, especially the PT 401 'Super' EPO Dimer for the treatment of anemia, which is undertaken with Harvard Medical School's Beth Israel Deaconess Hospital in Boston. We also are pleased to continue support of the Statinome project for the detection of myalgia, or severe muscle pain, in certain patients, and the Ovanome project, a genetic test for predicting an ovarian cancer patient's response to some first-regimen chemotherapy."

Mr. Gabriel continued, "We have also made rapid progress in funding the development of the CD59 diabetic test product, and we are excited about the new results that will be published either second or third quarter of this year. Diabetes is the number one health crisis facing the U.S. and our work with Harvard Medical School's Dr. Jose Halperin and Dr. Michael Chorev on the CD59 test, is extremely exciting to us and the researchers on both teams."

DNAPrint kept its selling, general and administrative costs increased to only $3,194,122 compared to $2,864,548 for the same period in the prior year, an increase of only 11.5%.

DNAPrint Genomics, Inc. formed a wholly owned subsidiary in 2005, known as DNAPrint Pharmaceuticals, Inc. for the development of diagnostic and pharmaceutical products. "We are exploring funding alternatives for DNAPrint™ Pharmaceuticals, including venture capital, spin-out and licensing and partnering, because the continued funding by the parent is becoming more difficult. We have sold the Biofrontera shares during late 2006 and early 2007 to give us some much-needed short-term funding. We have received proceeds of $1.8 million through February and will receive 500,000 euros (approx. $0.6 million) a month from March through September and 443,240 euros (approximately $.6 million) in October. This will provide us with a source of funding until we get additional funding secured. We hope to have a funding strategy in place by the second half of 2007 which will alleviate the financial burden on DNAPrint™ Genomics, Inc.," stated Mr. Gabriel.

"Clearly, our challenge going forward is to control costs, keep our projects running, continue the sales momentum that we have achieved with the ancestry and genotyping products, and to find ways to increase genotyping and general fee income," stated Mr. Gabriel. "To that end, one of our endeavors for 2007 will be to join with law enforcement agencies nationwide in supporting legislation before Congress that provides for the full funding of DNA testing in crime scene investigations. Currently, DNA test reimbursements are at a low percentage of real costs. We need to convince our lawmakers that money spent on DNA testing can yield returns in the form of identifying and apprehending suspects and obtaining convictions. We are also aggressively pursuing business in the health care arena using our underlying DNA and diagnostic technologies to help clinicians advance diagnostics and therapeutics in addition to pursuing our regular business interests of DNA testing and services" he stated.

About DNAPrint™ Genomics, Inc.

DNAPrint™ Genomics, Inc. (www.dnaprint.com) is a developer of genomics-based products and services in two primary markets: biomedical and forensics. DNAPrint™ Pharmaceuticals, Inc., a wholly owned subsidiary, develops diagnostic tests and theranostic products (drug/test combinations) using the Company's proprietary ancestry-informed genetic marker studies combined with proprietary computational modeling technology. Computational Biology and Pharmacogenomics services are also offered externally to biopharmaceutical companies. The Company's first theranostic product is PT-401, a "Super EPO" (erythropoietin) dimer protein drug for treatment of anemia in renal dialysis patients (with end stage renal disease). Preclinical and clinical development of all the Company's drug candidates will benefit from simulated pre-trials to design actual trials better and are targeted to patients with genetic profiles indicating their propensity to have the best clinical responses. DNAPrint™ is proud of its continued dedication to developing and supplying new technological advances in law enforcement and consumer ancestry heritage interests. Please refer to www.dnaprint.com for information on law enforcement and consumer applications which include DNAWITNESS™, RETINOME™, ANCESTRYbyDNA™ and EURO-DNA™. DNAWitness-Y and DNAWitness-Mito are two tests offered by the Company. The results from these tests may be used as identification tools when a DNA sample is deteriorated or compromised or other DNA testing fails to yield acceptable results.

Forward-Looking Statements

All statements in this press release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, uncertainties relating to technologies, product development, manufacturing, market acceptance, cost and pricing of DNAPrint's products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, and patent protection and litigation. DNAPrint Genomics, Inc. expressly disclaims any obligation or undertaking, except as may be required by applicable law or regulation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in DNAPrint's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.

Contact Information

  • Company Contact:
    Richard Gabriel
    CEO and President
    941-366-3400
    -or-
    Ron Stabiner
    The Wall Street Group, Inc.
    212-888-4848