Genesis posts $10.68 mln full year loss

By NZPA

Friday 7th February 2003

Listed biotech Genesis Research and Development Corp today posted a full year loss of $10.68 million after tax.

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

Total operating revenue declined by 22 percent to $15.5 million, while earnings per share clocked in a 40.92cps, compared with 37.32cps a year earlier.

No dividend was declared.

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

Shares in Genesis last traded up 8c at $1.20 against a year low of $1.12 and a high of $3.20.

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 (PVAC) to market.

Genesis said today's 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.

A randomised, placebo-controlled phase 2 trial of SRP299 -- a treatment for moderate-to-severe atopic dermatitis in children aged 5-16 -- commenced in December.

The company will hold its annual meeting in Auckland on April 11.

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