Decode Reports Decreased Q3 Revenues

NEW YORK, Nov. 14 - Decode Genetics today reported decreased revenue for the third quarter of 2002.

The company said its total revenue was $9 million in the third quarter which ended September 30, compared to $9.7 million in the same quarter of 2001.

Decode reported a net loss of $85.7 million, or $1.61 per share, in the third quarter 2002 compared to a net loss of $8.9 million, or $.20 per share, in the year-ago period. The company said the increased loss reflected in part a substantial one-time milestone revenue received in the year-ago period. Additionally, in the current third quarter Decode recorded impairment, employee termination benefits, and other charges of $64.8 million as a result of the acquisition of MediChem Life Sciences in March.

R&D spending increased to $23.5 million compared to $16.8 million in the same period a year ago.

Decode also reported $104.9 million in cash and cash equivalents, including $6 million in restricted cash, at the end of September 2002.