NEW YORK (GenomeWeb News) — DeCode Genetics today said third-quarter revenues decreased 35 percent as R&D spending rose 29 percent and loss increased 108 percent.
Total receipts for the three months ended Sept. 30 decreased to $8.6 million from $13.2 million year over year. Decode blamed the decline on lower alliance revenues in 2006, and because $11.8 million in revenue was deferred to future reporting periods.
R&D spending increased to $14.2 million from $11 million year over year. Decode said steady increases in R&D throughout the year are from drug discovery, clinical trials, and SNP analysis covering several disease areas.
The company said loss increased to $23.6 million from $11.3 million in the year-ago period. The losses came from increased spending on research and in a shift in accounting standards regarding DeCode’s share-based compensation.
DeCode said it had around $126.8 million in cash and investments as of Sept. 30.
DeCode also said that a lawsuit it filed against five former employees and the Children’s Hospital of Philadelphia in September for allegedly stealing trade secrets to set up a competing lab is expected to resume this month.