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PRINCETON, N.J., June 17, 2004 – Orchid Cellmark, Inc. (Nasdaq:
ORCH) today announced that the U.K. government has renewed Orchid’s
scrapie genotyping contract for two more years. Under the terms of the
agreement, Orchid will continue to be a major supplier of genotyping services
offered to U.K. sheep farmers under the government’s National Scrapie
Plan (NSP), which is designed to help British farmers breed sheep with
reduced susceptibility to the prion disease scrapie. Orchid is a major
service provider to the program and its genotyping service has analyzed
nearly one million sheep since 2001.
"We are proud to have played a major role in the success to date
of this innovative program, and the acknowledgment of Orchid’s work
that this contract renewal represents," said Paul J. Kelly, M.D.,
chief executive officer of Orchid. "As a result of our demonstrated
quality and speed of service, we are pleased to continue to be a major
contributor to this large scale genotyping initiative. The market for
animal genetic susceptibility and meat traceability DNA testing is increasingly
significant for Orchid, and we are working to build on the strong base
and solid reputation we have developed through our work for the NSP to
expand our business in this growing area."
The contract renewal is part of the National Scrapie Plan for Great Britain
developed by the Department for Environment, Food and Rural Affairs (DEFRA)
in conjunction with the Agriculture and Rural Affairs Departments in Scotland
and Wales. Further details of the contract were not disclosed.
"The quality of service we have received from Orchid since they started
testing for the NSP in 2001 has been of a very high standard," said
Francis Marlow, programme manager for the National Scrapie Plan for Great
Britain. "We are pleased to extend our current contract for scrapie
genotyping with Orchid."
NSP officials held a ceremony last week to mark the collection of a sample
from the one-millionth sheep to be genotyped under the plan. Speaking
at the ceremony, the U.K. government’s Chief Veterinary Officer Dr.
Debby Reynolds commented, "Our ultimate goal is of course to eradicate
scrapie. We are aiming to achieve this through the application of modern
technologies such as scrapie genotyping and secure identification to enable
flock owners to identify and preferentially use their more resistant sheep
as part of the NSP breeding schemes."
Scrapie, one of the transmissible spongiform encephalopathies, is a fatal
disease that affects sheep worldwide. Scrapie has the potential to cause
significant economic losses to farmers through the loss of infected animals
and by affecting confidence in the safety of the food supply. Scientists
have discovered a number of genetic variations that affect an individual
sheep’s susceptibility to scrapie. By selecting those sheep with
a low genetic susceptibility as breeding stock, over time farmers expect
to produce flocks with greatly reduced vulnerability to the condition.
Of the more than 900,000 sheep whose test results are currently available
from the NSP, more than one-quarter (27 percent) were highly resistant
to scrapie and another 40 percent were generally resistant. Going forward,
sheep from these two groups are expected to represent most breeding stock.
Combating Scrapie in Europe
The voluntary National Scrapie Plan is a long-term initiative of the U.K.
Government to eradicate scrapie from the national flock and thereby reduce
the economic costs and potential risk to the food supply posed by sheep
with scrapie. The NSP is the largest program of its type and enables flock
owners to have some or all of their sheep genotyped in return for adopting
programs to breed for scrapie resistance. Since it started testing in
October 2001, one million sheep have been genotyped under NSP programs.
A number of other European Union member states have similar programs.
A parallel Northern Ireland Scrapie Plan, for which Orchid is the exclusive
provider of genotyping services, was launched in 2003. Orchid is also
one of the approved suppliers of genotyping services to the recently launched
National Genotyping Programme in the Republic of Ireland.
EU-wide law now requires use of genotype-based controls in scrapie-affected
flocks and, beginning in April 2005, EU flock owners will be required
to begin breeding out the most scrapie-susceptible sheep in flocks of
high genetic merit. Further information on the National Scrapie Plan for
Great Britain can be found on the Internet at www.defra.gov.uk/nsp
About Orchid Cellmark Europe
Orchid established its European headquarters in 2001 through the
acquisition of U.K.-based Cellmark Diagnostics, one of the world's
first commercial DNA testing laboratories. Under the Cellmark
brand, it is one of the largest providers of paternity and relationship
testing services in Europe, and a leading supplier of forensic
DNA profiling for criminal investigation, a rapidly growing area
in which the U.K. is a world leader. It is also the major supplier
of genotyping services to the U.K. Government's National Scrapie
Plan, delivering high throughput DNA testing services to help
British farmers breed sheep with reduced susceptibility to this
prion disease. More information about the range of DNA testing
services and products available from Orchid Cellmark Europe
can be found at www.orchideurope.com.
About Orchid Cellmark, Inc.
Orchid Cellmark is the leading provider of services and products for
profiling genetic uniqueness. Orchid’s interlocking strategic business
units address distinctive markets that together represent a unique balance
of established, predictable growth, such as forensic and paternity DNA
testing, and large upside potential, like pharmacogenetics-based personalized
healthcare. All leverage Orchid’s network of accredited genotyping
laboratories, its leading technologies and its expertise in genetic analysis.
Orchid provides identity genomics testing for forensics and paternity
through Orchid Cellmark and Orchid GeneScreen, and also provides public
health genotyping services. Orchid GeneShield is developing pharmacogenetics-based
programs designed to accelerate the adoption of personalized healthcare.
More information on Orchid can be found at www.orchid.com.
All statements in this press release
that are not historical are forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act as amended, including statements
regarding the fact that immigration related genetic testing is a rapidly
growing global market. 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 Orchid products and services, dependence on collaborations and partners,
regulatory approvals, competition, intellectual property of others, patent
protection, litigation, Orchid’s ability to obtain additional financing
and Orchid’s listing on the Nasdaq National Market. These risks and
other additional factors affecting Orchid’s business are discussed
under the headings "Risks Related to Our Business," "Risks
Related to the Biotechnology Industry" and "Risks Associated
with Our Common Stock" in Orchid’s Annual Report on Form 10-K
for the year ended December 31, 2002, and Orchid’s Registration Statement
on Form S-3 and the prospectus contained therein dated June 6, 2003, each
as filed with the Securities and Exchange Commission, and in other filings
made by Orchid with the Securities and Exchange Commission from time to
time. Orchid expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in Orchid’s expectations with regard
thereto or any change in events, conditions, or circumstances on which
any such statements are based, except as may be required by law.
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