Compugen Posts Declining Revenue, Widened Loss in Q4

NEW YORK, Feb. 13 - Compugen on Wednesday reported that revenue shrank in the fourth quarter as a moderate increase in R&D spending conspired to widen net losses.

Total revenue in the period ended Dec. 31 fell to $3.1 million from $3.4 million one year ago as income from products and services slowed, the company said. An increase in research grants to $406,000 from $98,000 kept the top line from contracting further.

A moderate increase in R&D spending, which came to $3.5 million from $3.0 million in the year-ago period, contributed to an overall increase in expenditures for the quarter that grew to $7.8 million from $6.5 million one year ago, according to Compugen.

The Israel-based firm said that net loss in the quarter ballooned to $4.1 million, or $.16 per share, compared with $1.5 million, or $.06 per share, year over year.

Last month, Compugen launched Agro-LEADS, an ag-bio and plant genomics subsidiary designed to integrate computational biology and plant genomics with traditional agricultural techniques.

Based in Rehovot, Israel, Agro-LEADS will focus on developing seeds with improved traits. It also plans collaborations with outside researchers in crop protection, nutritionally improved crops, and the expression of therapeutic and industrial products in genetically engineered plants.

The subsidiary will be co-managed by Hagai Karchi and Rafael Meissner, who are also co-founders. Their team includes plant geneticists, bioinformaticists, molecular biologists, and traditional plant breeders.