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03 August 2006
Auckland, New Zealand, 31 July 2006 – Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) today reported a cash balance at 30 June 2006 of $11.5 million (30 June 2005: $5.1 million). Revenue for the 6 months to 30 June 2006 was $9.9 million (2005: $1.3 million). This included a one-time item of $8.7 million from the settlement with ArborGen, LLC. Overall expenditure for the period reduced to $3.8 million (2005: $5.4 million) following the termination of several programmes and reduction in staff numbers. The resulting net surplus for the half year was $6.1 million (2005 deficit: $4.1 million). Genesis Chief Executive, Stephen Hall, said, “The net recurring cash burn of $2.2 million (excluding one-time costs) was significantly below budget and was a major reduction from the 2005 cash burn of $3.8 million, reflecting the company’s focus on fewer projects. Genesis now has a longer term of funding reserves than most other biotech companies. This security allows the company to progress with confidence and to consider expansion opportunities. A FRST grant for a plant research programme has been renewed for a further 12 months. Further income from licensing and collaborations is also being pursued. The internal therapeutics programmes are making good progress. A cancer therapeutic programme has passed initial validation milestones and is now being expanded. In addition, the company is actively exploring several in-licensing opportunities to broaden the Genesis pipeline of projects.” The biofuels programme has demonstrated the viability of producing ethanol, unsulphonated lignin and xylose from shrubby willow. The project has significant commercial potential, both in NZ and internationally, so we are exploring funding to build a pilot scale refinery. About Genesis AgriGenesis is a subsidiary company focused on plant biotechnology. Its BioJoule project is utilising shrubby willow to produce ethanol, unsulphonated lignin and xylose. Genesis now holds 22 issued patents. The US Patent and Trademark Office has allowed claims for 10 of these, and the rest are from a number of other countries, including 5 from New Zealand. There are 10 applications pending in the U.S. and more than 27 pending in other countries. For more information, please visit www.genesis.co.nz Download Consolidated Financial Statements
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