NEW YORK, July 23 (GenomeWeb News) - Gene Logic today reported falling revenues and a slightly increased net loss for the second quarter of the year. The company also announced a broad technology cross-licensing agreement with Millennium Pharmaceuticals, based on which it will offer a new research service. Millennium, which licensed Gene Logic's ToxExpress database, will be the first customer for the service.
In return for $3.5 million in cash or stock, and $1 million in payments to Millennium employees, GeneLogic has licensed technologies and hired staff from Millennium. These will form the basis for a new research service to identify therapeutic indications for drugs, based in Cambridge, Mass. The licensed technologies, which the two companies plan to develop further, include in vivo compound imaging, in vitro pathway screening, predictive and genetic ADME capabilities, and metabolomics methods. Gene Logic said it will spend at least $8.5 million over the next year and a half to develop and commercialize these technologies.
Millennium will be the first customer for the new service, which will evaluate one of its compound originally developed for obesity. Millennium also took a three-year license to Gene Logic's ToxExpress database, valued by Gene Logic at $4.5 million.
Gene Logic has also licensed a compound from Millennium, which it expects to out-license in the future, following further development.
Gene Logic's Revenues for the quarter decreased to $18.6 million, from $19.4 million during the same quarter last year.
R&D costs fell to $357,000, from $463,000 during the year-ago period.
Gene Logic's net loss for the quarter totaled $4.4 million, or $.14 per share, up from $4 million, or $.13 per share, during the second quarter in 2003.
As of June 30, Gene Logic had approximately $101 million in cash, cash equivalents, and marketable securities.