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08 August 2005
Auckland, New Zealand, 8 August 2005 – Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) today reported a cash balance at 30 June 2005 of $7.1 million (31 December 2004: $10.9 million). Revenue from collaborations, licence fees and interest for the 6 months to 30 June 2005 was $1.3 million (2004: $2.8 million). The decline was due to the completion of certain research collaborations and a reduction in licence fees as a result of completed programmes. A new grant from Technology NZ to support the RNAi therapeutics programme commenced in the last quarter of the period. Overall expenditure for the six months reduced to $5.4 million (2004: $9.8 million) following the termination of several programmes and reduction in staff numbers. The resulting net deficit for the period of $4.1 million (2004 deficit: $7.1 million) includes non-recurring costs of $1.4 million, including research costs for certain programmes that have now been terminated, together with legal costs relating to the ArborGen dispute and settlement negotiations. Genesis Chief Executive, Stephen Hall, said, “The Company has completed its reorientation and the ongoing programmes are making good progress. The company has reduced its direct costs and overheads and currently has 40 employees, primarily focused on the RNAi therapeutics programme which commenced in 2004 and is making good progress. Formal documentation for the settlement which was negotiated with ArborGen, LLC is currently being prepared. Genesis will receive US$5.5 million (approx. NZ$8 million) when the settlement is completed, which is expected prior to the end of 2005. These funds would result in Genesis having cash reserves equivalent to approximately three years’ operations at the current rate of expenditure, substantially more than many other biotech companies.” About Genesis Founded in 1994, Genesis is a New Zealand-based biotechnology company. It has built a broad therapeutic development platform targeting immune disorders and cancer and is focusing on developing RNAi therapeutics. Genesis now holds 18 issued patents. The US Patent and Trademark Office has allowed claims for 7 of these, and the rest are from a number of other countries, including 5 from New Zealand. There are 19 applications pending in the U.S. and more than 30 pending in other countries. For more information, please visit www.genesis.co.nz Media contacts: Stephen Hall, Chief Executive - Genesis Research and Development Corporation Limited, +64 9 373 5600 Aki von Roy, Chairman- Genesis Research and Development Corporation Limited, +64 21 133 1076 Download Half Year Results |