$1.7 million half-year loss for Genesis Research

By PETER GRIFFIN

Biotechnology firm Genesis Research and Development had a $1.7 million loss for the June six months, but its dip back into the red came with a 65 per cent increase in revenue.

The company, listed on both the Australian and New Zealand stock exchanges, had a $723,000 profit last year.

Revenues for the June six months were $12.6 million compared with $7.6 million for the same period last year.

That will be some relief to Genesis shareholders, who have watched the firm's shares drop to $3.80 from a listing price of $6 last September.

The company claimed it made "significant advances" in the last six months in commercialising its intellectual property, boosting its research and development spending by 30 per cent to $11.3 million and hiring 15 more staff.

Genesis said it had $51.6 million in cash, and that was likely to cover research for several years.

"We have such a huge proportion of income coming in against our research expenditure we have a very low 'cash-burn' rate," said Genesis chief executive Dr Jim Watson.

A priority for Genesis would be the next clinical trial for the psoriasis (skin disease) drug PVAC.

This would be held in the United States with partner Corixa.

Genesis shares last night closed up 15c at $4.