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Gen-Probe Reports Strong Financial Results for Third Quarter 2007, Raises Full-Year Guidance for Earnings Per Share and Total Revenues
Date:10/30/2007

arter of 2007 benefited from continued international expansion, and from higher pricing associated with U.S. commercial sales of the PROCLEIX(R) WNV (West Nile virus) assay on the TIGRIS system. Gen-Probe's blood screening products are marketed worldwide by Chiron, a business unit of Novartis Vaccines and Diagnostics. Gen-Probe's blood screening sales in the third quarter of 2007 also benefited from favorable assay ordering patterns, primarily associated with the Company's WNV assay, and from increased sales of TIGRIS instruments to Novartis.

Product sales were, in millions:

Three Months Ended Sept. 30, Nine Months Ended Sept. 30,

2007 2006 Increase 2007 2006 Increase

Clinical

diagnostics $51.8 $43.3 20 % $149.5 $125.8 19 %

Blood screening $45.6 $40.2 13 % $129.0 $114.0 13 %

Total product

sales $97.4 $83.5 17 % $278.5 $239.8 16 %

Collaborative research revenues in the third quarter of 2007 were $3.1 million, compared to $1.5 million in the prior year period, an increase of 107% that resulted primarily from higher reimbursement from Novartis of shared expenses in the companies' blood screening collaboration. For the first nine months of 2007, collaborative research revenues were $11.2 million, compared to $14.7 million in the prior year period, a decrease of 24% that resulted primarily from the reclassification of revenue associated with investigational use of the PROCLEIX WNV assay. Beginning in the third quarter of 2006, the Company began recording all revenue associated with this assay in product sales, rather than in collaborative research revenues. The assay was approved by the US Food and Drug Administration (FDA) for use on Gen-Probe's enhanced semi-automated instrument system (eSAS) in December of 2005, and for use on the TIGRIS system in March of 2006.

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SOURCE Gen-Probe Incorporated
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