Deltagen Reports 2014 Full Year Financial Results

Deltagen, Inc. (Pink Sheets: DGEN), a provider of drug discovery tools and services to the biopharmaceutical industry, today reported unaudited consolidated financial results for the year ended December 31, 2014.

Revenues: The Company’s consolidated revenues for the year ended December 31, 2014 totaled $0.870 million. The revenues were attributable primarily to license fees associated with the provision of knockout mice and related phenotypic data pursuant to orders placed by customers under the Company’s DeltaOne^TM program. The consolidated revenues included $0.084 million for Xenopharm, Inc. (“Xenopharm”), a wholly-owned subsidiary of the Company.

Expenses: Total consolidated expenses for the year ended December 31, 2014 were $0.714 million. The expenses were attributable primarily to labor costs and other general and administrative expenses, including $0.100 million in royalty and commission expenses. As of the second quarter of 2014, the Company had fully satisfied its obligation of $6.00 million in contingent royalty payments owed to Lexicon Pharmaceuticals, Inc. (“Lexicon”) as a result of a March 2005 settlement agreement between Lexicon and the Company.

Net Income: Consolidated net income before provision for income taxes for the year ended December 31, 2013 was $0.156 million.

Cash, Cash Equivalents and Accounts Receivable: As of December 31, 2014, the Company had $0.023 million in consolidated cash and cash equivalents and $0.186 million in accounts receivable. The Company borrowed $0.025 million under a secured promissory note dated December 8, 2014 in a related-party transaction involving one of the Company's directors, which note carried a 0.25% interest per annum, compounded annually. The promissory note was paid in full on February 28, 2014.

Company Stock Repurchase: In the fourth quarter of 2014, the Company repurchased a total of 7,709,710 shares of its common stock from two of its institutional investors for a total of $0.040 million. Following the repurchase, the Company had 32,573,451 issued and outstanding shares of common stock.

About Deltagen

Deltagen, Inc. is a provider of drug discovery tools to the biopharmaceutical industry, and offers access to its inventory of knockout mouse lines and related phenotypic data to enhance the efficiency of target validation and drug discovery. For more information on Deltagen, visit the Company's website at www.deltagen.com.

Safe Harbor Statement

This press release contains “forward-looking statements,” including statements about Deltagen’s future revenues, cash flows and operating results, first-party royalty obligations and first-party licenses and intellectual property, as well as other matters that are not historical facts or information. These forward-looking statements are based on management’s current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Deltagen’s ability to achieve its operational objectives and revenue projections, that may cause Deltagen’s actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important risk factors is contained in the Company's annual financial disclosure's “Management’s Discussion and Analysis of Financial Conditions and Results of Operations”, which can be found at Deltagen’s website at www.deltagen.com. Deltagen undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.