Genetic Technologies reports $3.3m 1H loss

Genetic Technologies (ASX:GTG) has swung back to a loss for the first half of FY12, after reporting its maiden half-year profit in the same period a year ago.

The genetic testing and gene patent licensing company reported a net loss for the half of $3.3 million, compared to a profit of $4.2 million in 1H11.

Revenue fell 74% to $3.6 million, as a result of decreased out-licensing revenue and a 19% decline in gross revenue from domestic genetic testing operations.

GTG has sometimes controversially sued biotechs that have proved reticent to agree to pay license fees for the company's patents related to the analysis of junk DNA.

The timing of the patent enforcement process meant the company signed just three settlement and license agreements during the half year, GTG said in its 1H report.

Since the end of the financial period, GTG has announced two new patent settlement deals, both of which were reached this month.

Operating expenses for 1H12 were reduced to $3.5 million, from $5.3 million a year earlier.

The report states that GTG made strong inroads during the period in its pilot US launch of BREVAGen, its genetic risk assessment tool for breast cancer.

The company sold 125 tests to 53 physicians during the half-year, and placed over 1,320 test kits to 246 targeted practices, representing a 68% acceptance rate.

Earlier this month, GTG revealed it had received a CLIA Compliance Certificate for its Melbourne laboratory from the US Centers for Medicare and Medicaid Services. This was a prerequisite for launching BREVAGen in the eight US states where the test had not yet been approved.

GTG had recorded a maiden full year profit of $900,000 for FY11, up from a $9.5 million loss in FY10.

Genetic Technologies (ASX:GTG) shares fell 4.17% on Tuesday to $0.115 after the results were released to the market.