Petrelis Files

Dear Friends:

ViroLogic, the developer and manufacturer of the widely promoted HIV drug-resistant tests all over the news lately, put out its most up-to-date financial reports on Tuesday, the opening day of the HIV retrovirus conference in Boston, of which Dr. David Ho is the chairman this year.

The good news I gleaned from this release is that the company is doing well and making a handsome profit from its HIV assays, of which there are quite a few.

But the bad news is that ViroLogic suffered a $77.2 million net loss, due to merging with another biomedical company.

Good thing their HIV resistant assays are in the news, generating more tests performed by anxious people at risk of HIV, public health officials, private doctors and drug companies. Since ViroLogic's assays are so expensive to perform at the company's own lab, and the cost is being picked up by private and public insurers, more tests administered equals more revenue for the shareholders, including Dr. Ho and his brother Sidney.

Patient testing revenue is so vital to the company right now, it's prominently mentioned in the good news part of the CEO's quote below.

For some nasty chatter among speculators and investors about ViroLogic, its stock, the chairman and board, and the Ho brothers, visit Yahoo's financial area.

It's very informative and at: http://finance.yahoo.com/q/mb?s=VLGC

MPetrelis@aol.com
^^^

http://www.biospace.com/news_story.cfm?StoryID=19161220&full=1
SOUTH SAN FRANCISCO, Calif., Feb. 22 /PRNewswire-FirstCall/ -- ViroLogic, Inc. today reported financial results for the fourth quarter and year ended December 31, 2004.

Revenue for the fourth quarter of 2004 was $9.9 million compared to revenue of $9.3 million for the fourth quarter of 2003. For the year ended December 31, 2004, the Company reported revenue of $36.8 million, compared to $33.4 million in 2003.

Revenue from the Company's HIV patient testing products was $6.9 million in the fourth quarter of 2004 compared to $5.3 million in the fourth quarter of 2003. Revenue from the Company's HIV pharmaceutical testing products was $2.6 million in the fourth quarter of 2004 compared to $3.5 million for the same period in 2003. For the full year 2004, revenue from the Company's HIV patient testing products was $24.9 million, compared to $22.8 million in 2003. Revenue from the Company's HIV pharmaceutical testing products for the year was $9.9 million in 2004 compared to $9.1 million for the same period in 2003.

"We are pleased to report record total and patient testing revenue for the fourth quarter and full year of 2004," said William D. Young, CEO and Chairman of ViroLogic. "Our lead product for HIV resistance testing, PhenoSense(TM) GT, continues to be well accepted by physicians as a source of comprehensive information critical to guiding therapy of patients with HIV/AIDS. With the completion of our merger with ACLARA, we intend to develop a market position in oncology that mirrors our pioneering role and leadership position in HIV resistance testing."

For the fourth quarter of 2004, the net loss was $77.2 million, or $1.12 per common share, compared to a net loss of $405,000, or $0.01 per common share, for the same period in 2003. Included in the net loss for 2004 were substantial non-cash items related to the merger with ACLARA, including a charge for in-process research and development of $100.6 million and a favorable adjustment related to the revaluation of the Contingent Value Rights (CVRs) of $28.5 million as well as stock-based compensation expense of $3.4 million. On a proforma basis, adjusted for these non-cash items, the net loss was $1.7 million, or $0.02 per share, in the fourth quarter of 2004 compared to $405,000, or $0.01 per share, in the same period of 2003.

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