Genaissance Revenues, Net Loss Climb in Q2

NEW YORK, Aug 12 (GenomeWeb News) - Genaissance Pharmaceuticals today reported a 72 percent increase in revenues and a doubling of its net loss for the second quarter of 2004.

The New Haven, Conn.-based firm brought in revenues of $5.4 million in the quarter compared to revenues of $3.1 million in the second quarter of 2003. The increase was primarily due to the April acquisition of Lark Technologies, a Houston-based provider of genomics services such as genomic data management, microarray support, quantitative PCR, genotyping, and genetically modified organism testing.

Genaissance posted a net loss for the quarter of $7.8 million, or $.26 per share, compared to a net loss of $3.8 million, or $.17 per share, for the comparable period last year. The firm said the increased net loss per share was largely the result of higher operating expenses and a one-time charge for the issuance of a new common stock warrant related to the early exercise of a previous Series A Preferred Stock warrant.

Operating expenses for the firm rose to $11.8 million from $7.1 million in the second quarter of 2003, as the firm absorbed the cost of sales and other expenses related to the acquisitions of Lark and DNA Sciences, which it acquired in May 2003. Genaissance said its expenses also rose due to the costs related to the launch of its Familion Test and charges for the issuance of 84,000 shares of common stock related to a letter of intent to license a drug candidate in clinical development.

As of June 30, Genaissance had cash, equivalents, and marketable securities of $11.6 million.