NEW YORK, Nov. 15 – DeCode Genetics of Reykjavik, Iceland reported a 74 percent increase in third quarter revenues to $9.7 million, compared with $5.6 million in the year ago period, as the company received growing milestone payments and forged new partnerships.
"The company's substantial revenue growth in the third quarter reflects the positive impact of our new corporate partnerships together with our ongoing discovery achievements,” Kari Stefansson, CEO of DeCode, said in a statement released Wednesday.
DeCode said that it had hit milestones in its gene and drug discovery collaboration with Roche. In 1998, DeCode and Roche signed a four-year collaboration deal to discover novel disease-related genes.
Also during the quarter, DeCode launched an alliance with Applied Biosystems to combine DeCode’s bioinformatics tools for genotypic analysis with Applied Biosystems’ bioanalytical instruments.
In addition, DeCode and Affymetrix said they would jointly develop and market DNA-based tests to predict a person’s responsiveness to treatments for common diseases, including high-cholesterol, depression, asthma, hypertension, breast cancer, schizophrenia and migraine.
Research and development expenses during the quarter totaled $16.8 million, up 44 percent from $11.7 million in the year ago period.
Those increases were partially offset by a drop in general and administrative expenses, which were down 36 percent in the quarter to $2.8 million.
Total operating expenses amounted to $19.7 million, compared with $16.1 million in the year ago quarter.
DeCode posted an operating loss of $9.9 million, down from $10.6 million a year ago.
Third quarter net losses widened to $8.9 million, or 20 cents a share, compared with net losses of $7.6 million, or 18 cents a share, in the year ago period.
During the first nine months of the year, DeCode burned through $12.2 million in cash for operations and $37.2 million for the purchase of property and equipment.
At the end of September, DeCode had $143.8 million in cash and equivalents.