Genesis announces loss, but ample cash reserves

New Zealand genomics company Genesis Research and Development Corporation has delivered a half-year loss of $NZ5.3 million ($4.57 million), but maintained sufficient cash reserves to support planned research programs.

Genesis chief executive Dr Jim Watson said the company's financial position meant it was well placed to "ride out any fluctuations in biotech markets".

"Our strategy remains one of building long-term value by developing patents and databases, gene sequencing expertise, numerous therapeutics and discovery programs and joint venture partnerships," Watson said.

In the six months to June 30, the company spent $NZ14 million in research and administration costs. This was offset by revenue streams from collaborations, licensing fees and interest totalling $NZ8.7 million, to produce a net loss of $NZ5.3 million for the period.

This compared to full year revenues in 2001 of $NZ20 million and a deficit of $NZ9.6 million for that year.

Genesis also reported cash reserves of $NZ42.2 million for the period, slightly below the December quarter kitty, which almost tipped $NZ48 million.

But the company said the cash was sufficient to fund planned research and development programs for several years.

Genesis' research program includes the recently commenced clinical trials of PVAC for mild to moderate plaque psoriasis in the United States and Auckland, approval to treat children with eczema with AVAC and a grant-funded project to investigate plant hormone and signalling.

The company reported that in the first half of this year 10 US patents and seven foreign patents were issued to Genesis, with a further 55 US patents and 261 foreign patents pending.