Skip to main content
Premium Trial:

Request an Annual Quote

DeCode Lays Off 14 Percent of Staff to Conserve Cash


NEW YORK (GenomeWeb News) – DeCode Genetics has laid off 60 employees, or around 14 percent of its staff, in an effort to ensure it has enough cash to last two years, the company disclosed today in a filing with the US Securities and Exchange Commission.  
 
The company said in the filing that the layoffs are “in line with its longstanding goal of ensuring that it has cash resources to last approximately two years.”
 
Almost all of the affected employees are in the company’s Reykjavik, Iceland, facilities, DeCode said.
 
Prior to the layoffs, the company employed 429 full-time staff. According to DeCode’s most recent annual report, 143 of those staffers were employed in the US and 286 in Iceland.
 
As of Sept. 30, 2007, the most recent period for which financial data is available, DeCode had cash and cash equivalents of $45.8 million and $118.6 million in cash, cash equivalents, and investments.
 
The company said in its quarterly report for that period that it will “require significant additional capital" to advance its drug development pipeline, "and so we will continue to investigate additional avenues of financing, such as further public or private equity offerings, additional debt financing, other forms of financing or added collaborations and licensing arrangements.”
 
DeCode acknowledged, however, that “no assurance can be given that additional financing or collaborations and licensing arrangements will be available when needed, or that if available, will be obtained on favorable terms,” and warned that if unable to raise additional cash, “we may have to curtail operations or attempt to raise funds on unattractive terms.”
 
In mid-afternoon trading, DeCode’s shares were down 11 percent to $2.23.

The Scan

Long COVID-19 Susceptibility Clues Contained in Blood Plasma Proteome

A longitudinal study in eBioMedicine found weeks-long blood plasma proteome shifts after SARS-CoV-2 infection, along with proteomic signatures that appeared to coincide with long Covid risk.

Tibetan Study Finds Adaptive Variant Influencing Skin Pigmentation

With a combination of phenotyping and genetic data, researchers document at PNAS a Tibetan-enriched enhancer variant influencing melanin synthesis and ultraviolet light response.

Domestication Linked to Nervous System Genes in Inbred Mouse Strains

Researchers highlighted more than 300 positively selected genes in domesticated mice, including genes linked to nervous system function or behavior in Genome Biology.

ALS Genetic Testing May Be Informative Across Age Ranges, Study Finds

Researchers in the journal Brain identified clinically actionable variants in a significant subset of older ALS patients, prompting them to point to the potential benefits of broader test use.