KEY POINTS:
Genesis Research and Development is expecting to reach "milestone achievements" in the next few months on its biotechnology projects, which include cancer treatments and environmentally friendly technology.
In announcing the company's half-year result, chief executive Stephen Hall said: "Excellent progress has been achieved with all the research programmes during the period. This is expected to lead to milestone achievements over the coming months."
The NZX-listed firm's net cash burn of $2.3 million during the six months ending June 30 was below budget and included an expansion of an oncology programme.
Genesis made a net loss of $3.1 million compared with a profit of $5.9 million the previous year, which had included one-off revenue of $8.7 million from selling forestry technology.
The oncology programme - for cancer treatment - had validated targets of significant commercial potential and made progress on delivery to target tissue types, Hall said.
"The Zyrogen programme (with potential for treating osteoporosis and autoimmune disorders) is currently generating sufficient volume of antibodies to the Zyrogen target to allow testing in disease models," he said.
"Positive discussions continue with a number of potential licensees and collaborators for both programmes."
The company had $6.7 million of cash compared with $11.5 million the previous year.
Strong interest had been shown in the natural lignin produced from shrubby willow by part-owned subsidiary BioJoule, Hall said.
"Samples of this lignin have been converted into polyurethane foam, showing the potential to produce 'green' plastic," he said.
BioJoule was looking for more investment for a pilot scale digester. "A number of groups are showing significant interest in this opportunity."
Genesis closed down 1c to 28c.
THE FIGURES
Genesis Research
Six months ending June 30
Revenue
2006 - $9.8m
2007 - $686,000
Net (loss)/profit
2006 - $5.9m
2007 - ($3.1m)
