HPV revenues increased by 42%.(human papillomavirus)(Digene Corp. reports research profits)

2002 DEC 12 - (NewsRx.com & NewsRx.net) -- Digene Corporation (DIGE) reported financial results for the fiscal 2003 first quarter ended September 30, 2002.

Total revenues for the first quarter increased 22% to $12.6 million, compared with $10.4 million reported for the fiscal 2002 first quarter. HPV [human papillomavirus] testing revenues grew 42% to $9.9 million from $7.0 million in last year's comparable quarter. Gross margins expanded to 74% compared with 70% in the same quarter last year. Net loss for the quarter was $2.6 million, or $0.14 per share, reflecting increased expenses associated with the company's expansion of its international sales and distribution infrastructure and costs related to various litigation matters, compared with net loss of $0.5 million, or $0.03 per share in the fiscal 2002 first quarter.

Evan Jones, chairman and CEO, stated, "We are very pleased with the results of the first quarter of fiscal 2003. Financially, our comparative quarterly revenue growth was driven by an increase in HPV sales, especially in the U.S. where HPV testing revenues grew by more than 65% over the comparable quarter last year. Gross margins on product sales continued to expand due to economies of scale coupled with a favorable product and geographic mix.

"During the quarter, we focused on building our direct distribution network in Europe, and now Digene affiliates can ship into 18 countries in Europe and our multilingual call center in the United Kingdom is established and taking orders. On that note, we are encouraged by the early results from our German marketing outreach and continue to expand our European presence."

Jones added, "In September, we filed an amendment to the FDA regarding our PMA Supplement to permit use of the Digene Hybrid Capture 2 HPV test in conjunction with the Pap as a primary cervical cancer screen in women age 30 and older. We continue to work closely with the FDA to facilitate their review of this exciting new indication."

In September, Cynthia L. Sullivan was elected by the directors to serve on the company's board of directors, and subsequent to the quarter Sullivan was elected by the shareholders of Digene to serve on the board of directors of Digene for a 3-year term expiring at the annual meeting of shareholders in 2005. Sullivan has been CEO of Immunomedics, Inc., since March 2001 and president since December 2000. Since joining

Immunomedics in 1985, Sullivan has held positions of increasing responsibilities, including executive vice president and chief operating officer from June 1999 to December 2000 and executive director, operations from April 1994 to June 1999.