Genesis income surges

By Phil Boeyen, ShareChat Business News Editor

Wednesday 31st January 2001

Upfront licensing revenue for its psoriasis treatment has helped recently listed biotech company Genesis Research (NZSE: GEN) turn a forecast $9.97 million loss into a $723,000 profit.

Genesis says total operating income for the year to the end of December almost quadrupled to $28.66 million from $7.19 million the previous year.

The income boost was from sublicensing the company's PVAC treatment for psoriasis to companies in Japan and North America. Its US partner Corixa is also looking to license the treatment in Europe and the rest of the world, promising even further returns.

Bottom-line profit of $723,000 compares with a loss of $7.15 million in 1999 and a forecast loss in the company's prospectus of $9.97 million.

The company says the increased revenue, together with its successful capital raising programme, enabled it to increase expenditure on research and development to $18.9 million, up 58% from $11.9 million in 1999.

Funds were applied to research into new therapeutics and other potential products as well as the Phase II Clinical trials for the PVAC psoriasis treatment currently underway in USA, Brazil and Philippines.

Results of the USA trial are due to be announced early in February.

"As this result shows, the prime beneficiary of Genesis' revenue growth and capital raising is our enhanced research programme," says the company's founder and CEO Dr James Watson.

"To operate from this solid base gives us an immense advantage in what is a highly competitive environment."

Genesis says staff numbers rose during the year from 83 to 124 through an active national and international recruitment programme.

The company finished the year with cash reserves of $61.93 million. No dividend is being paid.

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