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06 August 2007
Auckland, New Zealand, 6 August 2007 – Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) today reported research progress and financial results better than budget, including a cash balance at 30 June 2007 of $6.7 million (31 December 2006: $9.0 million).
The net cash burn of $2.3 million was held below budget but includes expansion of the oncology programme. The resulting net deficit for the period was $3.1 million (30 June 2006 surplus: $5.9 million, due to the one-time revenue of $8.7 million from the sale of forestry technology). Genesis Chief Executive, Stephen Hall, said, “Excellent progress has been achieved with all the research programmes during the period. This is expected to lead to milestone achievements over the coming months.” “The oncology programmes have validated a number of targets with significant commercial potential. Development work for delivery to target tissue types is proceeding well. The Zyrogen programme is currently generating sufficient volume of antibodies to the Zyrogen target to allow testing in disease models. Positive discussions continue with a number of potential licensees and collaborators for both programmes.” “The transition to International Financial reporting Standards has resulted in an increase in reported income of $37,000 and an increase in expenses of $66,000 for the period. Full details of the adjustments to opening balances are included in the financial statements.” “BioJoule Ltd, a partly owned subsidiary, has had very strong interest in the natural lignin it has been producing from shrubby willow. Samples of this lignin have been converted into polyurethane foam, showing the potential to produce ‘green’ plastic. During the period BioJoule raised $0.5 million new capital from external investors. Further investment is being sought to finance the development of a pilot scale digester. A number of groups are showing significant interest in this opportunity.” 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. BioJoule Ltd is utilising shrubby willow to produce ethanol, unsulphonated lignin and xylose. It has 3 patent applications pending in the U.S. and one international (PCT) patent application. Genesis now holds 24 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 25 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 21 556 659 |