Another big loss for biotech firm

Listed biotech company Genesis Research and Development has posted a full-year loss of $10.68 million after tax.

The unaudited result, for the 12 months ended December 31, compares with a $9.55 million loss for the same period a year earlier.

Total operating revenue fell 22 per cent to $15.5 million, and earnings per share were 40.92cps, compared with 37.32cps a year earlier.

No dividend was declared.

Genesis shares will open this morning at $1.20 after gaining 8c on Friday. On Wednesday they fell 24c, or 17.6 per cent, to $1.12 after a parcel of 1.17 million shares changed hands for $1.10.

The biotech company has several key products under development, including treatments for eczema and psoriasis.

Since its listing in September 2000 above $8, the stock has slumped, as biotech stocks fell from favour and other companies were seen to be further ahead in the process of getting a psoriasis treatment to market.

Genesis said the loss reflected its heavy investment in research and development.

"As an early stage biotech company, Genesis does not expect to produce consistent operating surpluses," chairman David Irving said.

"Our objective is to ensure that Genesis is able to weather the current difficult market conditions while continuing to pursue a strong commercialisation programme, including products in clinical trials."

Genesis plunged $15.1 million into research during the year, including clinical trials of $3.3 million.

It ended the year with a $36.3 million cash box - seen as "sufficient to fund its current and planned research and trial programmes for the foreseeable future" - compared with $47.9 million a year ago.

During the year, Genesis began a joint-venture research project with LandCare Research and signed a three-year research and development agreement with Seattle-based Immunex.

It also received a $6 million four-year grant from the Foundation for Research, Science and Technology to identify new plant hormones.

Genesis began phase II trials on its psoriasis drug, PVAC, and phase I trials showed its atopic dermatitis (eczema) drug AVAC was safe and well tolerated in adults.

- NZPA