Genesis loss tracks prospectus forecast

By Phil Boeyen, ShareChat Business News Editor

Wednesday 30th January 2002

Biotech firm Genesis Research and Development Corp (NZSE: GEN) has posted a loss of $9.55 million for its first full year as a listed company, slightly worse than prospectus forecasts.

In its prospectus the company had predicted a loss of $9.1 million for the year ended December 2001. The actual loss of $9.55 million compares with a $723,000 profit the previous year.

However the latest result also includes a $1.6 million writedown after the company went to full ownership of BioStore NZ.

Genesis says operating income of $20 million from interest, collaborations and licensing fees was lower than the $28.7million reported in 2000, which included a major licensing payment from Medicis, the PVAC licensee in North America.

During 2001 the company says it invested $20.5 million in research, including clinical trial costs of $4.5 million, utilising funds from its IPO and PVAC licensing.

Cash reserves at the end of the year were $47.9 million and staff numbers rose from 124 to 159 following a significant expansion of research and facilities.

The company says design of the next US clinical trial of PVAC for the treatment of psoriasis has been agreed with the US Food & Drug Administration although no trial start date has yet been set.

Other PVAC psoriasis trials are continuing in Brazil and Philippines and the results should be available mid-year.

The market will be keeping a close eye on those results given the apparent power of PVAC to move the Genesis share price.

Last February, when results from a US-based PVAC trial on 241 patients with moderate to severe psoriasis were announced, the market rounded on Genesis because the results was not as positive as expected.

Meanwhile the company says it plans to seek a full listing on the ASX if the proposed rule changes preclude continuation of the current listing as an exempt foreign entity.

Click here to read an Investor Interview with Genesis CEO, Dr Jim Watson.

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