This update serves to correct an error in fact. Third-quarter revenue derived from Genome Therapeutics' GenomeVision division fell by $1.3 million year over year, not $4.2 million as originally reported. GenomeWeb regrets the error.
NEW YORK, Nov. 12 - Genome Therapeutics today reported slumping third-quarter revenue atop substantial R&D growth and a ballooning net loss.
Total revenue for the period ended Sept. 30 fell to $5 million from $7.4 million during the same time one year ago. Broken down, the contraction reflected revenue slides from Genome Therapeutics two divisions--Biopharmaceuticals and GenomeVision--which respectively drew $1.1 million and $1.3 million less in the third-quarter 2002 over 2001.
R&D spending, meantime, swelled to $9.2 million in the third quarter 2002 from $5.2 million in the year-ago period as Genome Therapeutics in-licensed its drug candidate for certain severe bacterial infections.
Consequently, third-quarter net loss surged to $10 million, or $.44 per share, from $4.2 million, or $.18 per share, year over year, the company said.
Genome Therapeutics said it had roughly $58.4 million in cash, cash equivalents, restricted cash, and investments as of Sept. 30.
The company's earnings follow cost-cutting steps the company took in September that cost 34 staffers their jobs. As GenomeWeb reported, employees from early-stage R&D efforts and from administrative support were let go, sparing Genome Therapeutics' later-stage clinical-research and drug-development efforts, the firm said.
The move, which is expected to leave the company with 165 full-time staff while saving it about $6 million a year, will not affect any of the revenue-producing early-research partnerships it has with pharma, a Genome Therapeutics official said at the time.