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The cash burn of $3.2 million and the net loss were below budget due to the receipt of the initial cash payment from the sale of the investment in BioJoule Limited. A further $2.4 million is receivable in 2008. The net loss for the period includes a profit from discontinued operations of $4.3 million resulting from the sale of the investment in BioJoule Ltd ( Genesis Chief Executive, Stephen Hall, said, “Good progress has been achieved with all the research programmes during the period. This is expected to lead to milestone achievements during 2008. The oncology programmes have validated a number of targets with significant commercial potential. Development work for delivery of siRNA to target tissue types has shown positive in vivo results. The establishment of a research collaboration with MorphoSys for the Zyrogen programme was an important development. MorphoSys are producing sufficient volume of antibodies to the Zyrogen target to allow testing in disease models. Interest continues to be shown by a number of potential licensees and collaborators for both programmes.” “The sale of the 65% holding in BioJoule Limited for $4.6 million was a good result for Genesis, providing further cash resources for the ongoing health research and avoiding the need to fund the extensive cash requirements of BioJoule. This also completes the strategic transition of Genesis to being totally focused on development of immunology and oncology therapeutics.” “The transition to International Financial Reporting Standards has resulted in small adjustments to reported revenue and expenditure for the year. Full details of the adjustments are included in the financial statements.” The recent drop in the share price is consistent with market movements for other stocks, and particularly biotech stocks. The current market cap of $3.9 million is significantly below current net tangible assets of $8.7 million. 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 for oncology. Genesis now holds 25 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 For more information, please visit www.genesis.co.nz Media contacts: Stephen Hall, Chief Executive - Genesis Research and Development Corporation Limited, +64 21 715 725
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