NEW YORK, March 7 - Lexicon Genetics' year-end revenues increased 205 percent to $14.5 million from over $4.7 million in 1999, while increased expenses and stock compensation drove its losses up substantially for 2000, the company reported Wednesday.
The company attributed its revenue increase to a new alliance with Bristol-Myers Squibb in which Lexicon provides gene function information for drug targets in return for $15 to $25 million in access and delivery fees; as well as its other nine functional genomics collaborations with pharma and biotech; and license fees from its sub-licensees.
The jump in expenses, to $49.9 million in 2000 from $12.8 million in 1999, derives partially from a one-time stock-based compensation expense of $20.9 million. The company's sales, general, and administrative expenses also increased 168 percent to $8.3 million from $2.9 million in 1999, and its R&D expenses rose 42 percent to $20.8 million, from $14.6 million in 1999.
As part of its sales, general, and administrative expenses, Lexicon spent $800,000 pursuing patent infringement litigation against rival knockout mouse company Deltagen, a suit Lexicon initiated in late May.
The company posted net losses of $26.1 million or 63 cents per common share, compared to $13.0 million, or 53 cents per share for 1999. These losses, which included the stock-based compensation, greatly exceeded Wall Street's expectation of 32 cents per share, based on a survey of two brokers conducted by FirstCall/Thomson Financial.
As of December 31, 2000, Lexicon had cash assets of $202 million in the bank. In April of 2000, the company filled its coffers with $220 million netted in an IPO.
"Lexicon performed exceptionally well in the year 2000 and met or exceeded all of our milestones," Arthur Sands, Lexicon CEO, said in a statement. "Our strong cash position and the power of our technology, combined with our highly experienced drug discovery team, places Lexicon on a trajectory to become a leading biopharmaceutical company of the post-genome era."