|
20 February 2006
Auckland, New Zealand, 17 February 2006 – Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) today reported a cash balance at 31 December 2005 of $5.1 million (31 December 2004: $10.9 million). Revenue from collaborations, grants, licence fees and interest for the 12 months to 31 December 2005 was $2.6 million (2004: $4.4 million) following the completion of certain research collaborations and a reduction in interest income as a result of lower cash funds. A new grant from Technology NZ to support the RNAi therapeutics programme commenced early in the year. Overall expenditure for the year reduced to $9.7 million (2004: $18.1 million) following the termination of several programmes and reduction in staff numbers. Non-recurring expenditure incurred in the year, including research costs for certain programmes that have now been terminated, together with legal costs relating to the ArborGen dispute and settlement negotiations, amounted to $1.4 million. The resulting net deficit for the year was $7.1 million (2004 deficit: $13.7 million). Genesis Chief Executive, Stephen Hall, said, “The net recurring cash burn of $4.5 million (excluding one-time costs) was significantly below budget and was a major reduction from the 2004 cash burn of $12.1 million, reflecting the company’s reorientation. The ongoing RNAi therapeutics programme has been validated by an external review and is making good progress. Plans for clinical development are advancing with the intention of commencing a first trial within 12 months if milestones continue to be met. Formal documentation of the settlement which was negotiated with ArborGen, LLC has yet to be finalised but is expected to be completed shortly. Genesis will receive US$5.5 million (approx. NZ$8 million) when the definitive agreement is signed and material transfers completed. This is expected within the next 3 months. These funds would result in Genesis having cash reserves equivalent to approximately three years’ operations at the current rate of expenditure. Further income from licensing and collaborations is likely within that period.” 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 18 applications pending in the U.S. and more than 31 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 Consolidated Financial Statements |