Biotech company Genesis Research and Development Corp yesterday posted a loss of $5.26 million for the half year to June 30.
That compares with a $1.68 million loss recorded for the same period a year earlier. The result was dragged down by research and administration costs of $14 million (including an
unrealised foreign exchange loss of $1.1 million).
No dividend will be paid.
Genesis recorded total operating revenues of $8.7 million for the period, down on last year's $12.6 million.
Chief executive Jim Watson was sanguine, despite the poor result.
"Genesis is in a sound financial position and is well placed to ride out any fluctuations in biotech markets," he said.
"Our strategy remains one of building long-term value by developing patents and databases, gene sequencing expertise, numerous therapeutics and discovery programmes and joint venture partnerships."
Genesis has a strong balance sheet of $42 million, enough to sustain its research and development programme for several years.
The company recently announced it was beginning phase two of clinical trials for its psoriasis drug, PVAC, in the United States. Trial results are expected next year.
The company's plant division also was performing well, Genesis said, and this month received a $6 million, four-year grant from the Foundation for Research Science to study plant hormones.
Since listing in September 2000 above $8, the stock has slumped. Genesis shares last traded at $2.30.
- NZPA
