NEW YORK, Oct. 19 - Genzyme Molecular Oncology, which recently licensed its Serial Analysis of Genomic Expression database to Celera, shrank its losses by 38 percent this quarter, beating Wall Street's expecations by 8 cents per share.
The Framingham, Mass. pharmaceutical subsidiary of Genzyme reported a $5.5 million net loss for the third quarter of 2000, or 37 cents per share, compared with $7.6 million or 60 cents per share in the year-earlier period.
Wall Street had expected the company to post losses of 45 cents a share, according to a poll conducted by First Call/Thomson Financial.
Revenues for the quarter dropped nearly 17 percent, to $.6 million, compared with $.7 million in the 1999 quarter. At the same time, Genzyme Molecular Oncology's R & D expenditures rose 34% to $5.1 million, from $3.8 million in the third quarter of 1999, due to the company’s increased investment in its SAGE technology functional genomics platforms as well as its initiation of cancer vaccine trials and expansion of antigen discovery programs.
" We achieved unparalleled success in our business and clinical programs during the quarter, and we met our goal of establishing a transforming antigen discovery collaboration," Gail Maderis, president of Genzyme Molecular Oncology, said in a statement. “In addition, we expanded our SAGE business with three new agreements including a collaboration with market leader Celera Genomics ."
During the quarter, Genzyme Molecular Oncology granted Celera a co-exclusive worldwide marketing license for its SAGE database, in return for a revenue sharing agreement.
Also during the quarter, Genzyme Molecular Oncology licensed SAGE to NeuralStem Biopharmaceuticals for evaluation of global gene expression in its proprietary human central nervous system stem cells, and granted Invitrogen Corporation exclusive worldwide license to sell SAGE in its standardized reagent kits and its proprietary SAGE analysis bioinformatics software.
Genzyme Molecular Oncology ended the quarter with $23.6 million in cash and marketable securities, compared $8.0 million at the end of the second quarter of 2000. This 195% surge in assets is due to allocated proceeds of $20.8 million received in a directed public equity offering in July 2000. In addition, Genzyme Molecular Oncology has access to the $15.0 million remaining under an interdivisional financing arrangement with Genzyme General, and also has access to funding through Genzyme's revolving credit facility.
These reports are based on Genzyme’s recent modified financial statement format, where it is now presenting earnings information and tax-allocation information for each tracking stock within its consolidated financial statements rather than in the financial statements of each division.