Cash-strapped Oncor is selling subsidiary

Maryland Watch

August 18, 1998

Cash-strapped Oncor Inc. said yesterday that it will sell Codon Pharmaceuticals Inc., a subsidiary that develops technology for recognizing and repairing genes.

The Gaithersburg biotechnology company, which hasn't had a profitable year since its inception 15 years ago, announced in March that it would focus solely on gene-based cancer tests.

The sale to Codon Acquisition Holdings LLC, a company created by Perseus Capital LLC, is expected to close in September. Terms were not disclosed.

Also yesterday, Oncor reported a net loss of $2.5 million, or 8 cents per share, for the second quarter, which ended June 30, compared with a loss of $6.9 million, or 27 cents a share, in the second quarter last year.

The net loss for the first half of 1998 was $15.5 million -- 52 cents per share -- compared with $14.9 million, or 59 cents a share, in the first six months of 1997.

Revenue for the quarter was $3.4 million, compared with last year's $3.6 million. Oncor had a cash balance of $700,000 on July 31, and it raised $1 million by by exercising an option for shares in an affiliated company this month.

Pub Date: 8/18/98

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