AGT revenues up, losses down on last year

AGT Biosciences (ASX:AGT) has posted its annual financial results, showing an 11 per cent increase in revenues to $AUD5.2 million, and a loss of $1.9 million down 74.7 per cent from the previous year's loss of $7.5 million.

The major driver for the improvement in the figures was a significant cut in administrative expenditure, through restructuring of the management team.

According to CEO Prof Greg Collier, AGT has delivered on its promises made to shareholders at the beginning of the 2002-2003 financial year.

"What we promised the market when we took over a year ago was increased revenues and decreased corporate costs," said Collier. "We've streamlined the company in terms of corporate management, and we're running [the company] as a biotechnology company should be run, outsourcing functions wherever we can."

Collier said the company was now earning enough in revenues to cover the cost of its R&D program, and said that a small increase in revenue would allow the company to become cash flow positive.

"We believe with the moderate growth highlighted in the last six months we will be able to increase our revenues. We don't have to burn a lot of money now, we have to capitalise on what we've got," he said.

With a strong portfolio of intellectual property and a healthy cash position, Collier said AGT was in a good position for strong growth in the coming year. The company had $3 million in cash at the end of the financial year.

Among the achievements of the past year were patents filed on 14 new genes discovered in the diabetes and obesity, and depression and anxiety programs, and two new research and commercialisation deals signed with partner Merck-Sante, along with a milestone payment for the PARL gene.