NEW YORK (GenomeWeb News) – DeCode Genetics reported after the close of the market on Monday that its revenues for the first quarter declined 41 percent due primarily to lower contract service revenues — but the firm also substantially cut its net loss year over year.
The Reykjavik, Iceland-based firm brought in total revenues of $8.9 million for the three-month period ended March 31, compared to $15 million for the first quarter of 2008. The company noted that as of the end of the quarter it had $12.7 million in deferred revenue, which will be recognized over future reporting periods.
DeCode's net loss for the quarter was $12.6 million, or $.21 per share, a sharp drop from a net loss of $26.7 million, or $.44 per share, that it reported for the first quarter of 2008.
The company's R&D costs declined 67 percent to $4.2 million from $12.7 million, while its SG&A spending dropped 32 percent to $4.9 million from $7.2 million.
"Over the past few months we have been recasting DeCODE's business around what we do best: discover genetic risk factors for common diseases and apply those findings in tests and services that can improve the prevention and treatment of disease," said DeCode CEO Kari Stefansson in a statement.
"We are engaged in negotiations on large-scale sequencing collaborations, debt restructuring and equity financing, and on the sale of certain business units and therapeutics programs," he added.
DeCode announced back in October that it would conduct a review of its long-term business strategy with a goal of sharpening its business focus and selling non-core assets, among other aims.
In late April, DeCode granted Celera non-exclusive worldwide rights to genetic markers for various cardiovascular and metabolic diseases. The deal provides Decode with immediate access to an undisclosed sum in upfront payments, while Celera will gain access to gene markers that will complement and expand its cardiovascular disease-focused genetic testing service.
The company, which has been under threat of delisting from the Nasdaq market for several months, finished the quarter with $6.1 million in cash and cash equivalents.