NEW YORK (GenomeWeb News) - Decode Genetics today said second-quarter revenues fell by 27 percent as R&D spending grew 10 percent and losses fell 11 percent.
Total receipts for the three months ended June 30 fell to $7.6 million from $10.4 million year over year. The company attributed the decrease in revenue to the conclusion of its diagnostics partnership with Roche in 2006.
R&D spending rose to $14.5 million from $13.2 million year over year. Decode said the rising costs are due to “the advance of our drug development programs, the launch of our first DNA-based tests for gauging individual risk of common diseases, and the acceleration of our gene and target discovery work.”
The company reduced its net loss to $16.2 million from $18.3 million in the year-ago period.
Decode said it had around $137.2 million in cash, cash equivalents, and investments as of June 30.
Company CEO Kari Stefansson said in a statement that Decode ended the quarter with a “strengthened cash position" that it will use to fund further product development.
Stefansson added that the company recently launched DNA-based tests for assessing the risk of type 2 diabetes and the risk of atrial fibrillation and stroke, and said Decode's compound for heart attack treatment and its anti-platelet therapeutic have shown encouraging clinical results.