Researcher's losses keep on mounting

Genesis Research and Development Corporation yesterday reported a half-year loss of $7.1 million - worse than the $6.5 million loss it reported for the same period last year.

The listed biotechnology company ended the six months to June 30 with $16.5 million of cash in the bank, compared with $28.6 million a year earlier.

A statement from the company described this as "in line with budget" and said this was expected to be enough to fund research and development programmes "for a number of years".

Chief executive Jim Watson said: "We are continuing discussions with a number of parties interested in acquiring licences to some of our programmes, and resulting revenues will further extend the cash security of the business."

He said health programmes "continue to make good progress".

The company's operating revenue was $2.78 million, down from the previous $5.8 million.

The statement said the decline was due to "the completion of certain research collaborations and a reduction in licence fees as a result of completed programmes".

The company's spending was down from $12.3 million to $9.8 million.

The net deficit was a result of continued investment in trials "in atopic dermatitis and wholly owned research and development programmes not funded by income from collaborations".

Last month Genesis Research announced it was axing 29 staff.

Watson - who founded Genesis in 1994 - has said he will step down as chief executive later this year.

The company is searching for a successor and he will become "founder scientist".

Shares in Genesis closed yesterday at 75c, having traded between 55c and $1.20 in the past year. The result came out after the market had closed.

During the height of the hype around the biotech sector in 2001, the shares traded for $7.55.

- NZPA, staff reporter