NEW YORK (GenomeWeb News) – DeCode Genetics reported after the close of the market on Wednesday a 15.7 percent increase in fourth-quarter revenues and a 39.7 percent spike in its net loss.
The Reykjavik, Iceland-based firm brought in revenues of $13.3 million for the three months ended Dec. 31, compared with $11.5 million in the fourth quarter of 2006.
DeCode’s net loss for the quarter was $32.4 million, or $.53 per share, compared with a net loss of $23.2 million, or $.38 per share, for the fourth quarter of 2006. The Q4 2007 results include a $7.7 million charge related to impairment of auction rate securities that the firm holds.
"Recent uncertainties in the credit markets have prevented us and other investors from liquidating holdings of our remainung ARS in recent auctions because the amount of securities submitted for sale has exceeded the amount of purchase orders," the firm said in a statement.
“Obviously, we are not happy with the illiquidity of the auction rate securities," DeCode CEO Kari Stefansson said during a conference call Thursday morning. "However, we are taking the appropriate measures in an attempt to recover the money invested in them.”
The firm’s R&D costs dropped 11.3 percent to $12.6 million from $14.2 million, while its SG&A costs declined 10.5 percent to $7.7 million from $8.6 million.
For full-year 2007, DeCode’s revenues were flat at $40.4 million compared with $40.5 million in 2006. The firm’s net loss climbed to $95.5 million, or $1.57 per share, from $85.5 million, or $1.49 per share.
Its 2007 R&D spending dipped to $53.8 million from $57.1 million, and its SG&A expenses climbed slightly to $27.1 million from $25.2 million.
DeCode finished 2007 with $94.1 million in cash, cash equivalents, restricted cash equivalents, and current and non-current investments.
“A core focus this year will be on our diagnostic business," Stefansson said during the call. “We believe that we have put in place the key pieces to begin to reap the benefits of this work. We are working to speed the pace of commercial ramp up and expect to be in a position to give you guidance for diagnostic revenues in 2008 and perhaps 2009 in mid-year.”
In early thursday trade on the Nasdaq, DeCode's shares were down 5.8 percent at $1.82.