NEW YORK (GenomeWeb News) — Clinical Data on Tuesday reported that it trimmed its fiscal first-quarter net loss by 12 percent as revenues fell 20 percent and research and development spending fell 17 percent.
Total receipts for the three months ended June 30 decreased to $14 million from $17.6 million in the fiscal first quarter of 2007.
The company said the revenue decrease was due to the expected absence of $2.1 million related to its discontinued Icoria agriculture business, as well as a $1 million decline in OEM sales in its European in vitro diagnostics business.
Revenues for the PGxHealth division’s Familion test for Long QT and other cardiac channelopathies increased by 6 percent to $841,000, the company said.
Clinical Data spent $2.5 million on R&D in the quarter compared to $3.0 million in the comparable period of 2006.
Net loss narrowed to $5.4 million from $6.2 million in the year-ago period.
Clinical Data’s CFO and senior vice president Evan Ballantyne told GenomeWeb Daily News that the company is now looking forward to September, when it expects to announce results of Phase III clinical trials for its depression drug Vilazodone, which he described as a potential blockbuster.
Ballantyne said Clinical Data has been focused on managing its finances while restructuring after it shed its Vital Diagnostics and CDSS business arms earlier this year.
As of June 30, Clinical Data had around $16.1 million in cash and equivalents. As of Aug. 10, the company said it had around $81.7 million of cash and cash equivalents due to a public offering in July that raised $71.5 million.
Ballantyne said that amount would be sufficient to fund operations for the coming year or two, and provide capital for acquisitions.