NEW YORK (GenomeWeb News) – Compugen today reported that its third-quarter revenues declined to $6,000 from $90,000 year over year, as the firm plans to cut staff and reduce its expenses by 30 percent.
The Tel Aviv, Israel-based drug and biomarker discovery platform developer posted a net loss of $3.3 million, or $.12 per share, a 22 percent increase over a net loss of $2.7 million, or $.09 per share, for the third quarter of 2007.
Its R&D spending was flat year over year at $2.3 million, while its SG&A spending rose 9 percent to $1.2 million from $1.1 million.
Compugen finished the quarter with $10.3 million in cash, cash equivalents, short-term deposits, and marketable securities. It expects its cash usage for calendar 2009 will be roughly $8 million.
The company said yesterday that it intends to cut its expenses by around 30 percent and will lay off staffers, though it did not disclose how many.
Compugen also said that President and CEO Alex Kotzer will retire as of the end of the year and will be succeeded by Martin Gerstel, the company’s chairman.
Gerstel said in a release issued yesterday said that the firm intends to focus its internal R&D activities primarily on therapeutic peptides and monoclonal antibody drug targets. “In its biomarker and other programs, particularly in view of the current financial situation, the company intends to give priority to those activities pursued in collaboration with other companies,” he said in the statement.
Responding to investors’ concerns over the financial health of the company, Compugen issued a statement last week saying that it has sufficient cash on hand and marketable securities to run its business “well into 2010.” It also said that it has no intention of issuing equity at the firm’s current market value.
Compugen closed Wednesday at $.80 per share on the Nasdaq. It has a market cap of around $22.7 million.