Skip to main content

Lion Attributes Significant Jump in R&D to Ballooning Net Loss in Q3

NEW YORK, Feb. 6 - Lion Bioscience on Wednesday reported that a significant jump in R&D spending in the face of strong revenue growth in its fiscal third quarter caused the company to post a widened net loss.


For the three months ended Dec. 31, Lion reported total revenues of €10.3 million, or roughly $9 million, compared with €7.7 million in the year-ago period. The total was based on an increase in licensing fees to €5.9 million in the current quarter from €3 million one year ago, and a dip in R&D fees, which fell to €4.4 million this period from €4.7 million last year, the company reported.


A surge in R&D spending, which reached €12.9 million in the current third quarter compared with €8.5 million one year ago, pushed Lion to post €21 million in total expenditure for the quarter. By comparison, the company spent €12 million in the same period last year.


"This significant increase in R&D expense is primarily attributable to salaries as a result of hiring new personnel for our R&D activities, start-up costs for our pharmacophore informatics arrangement with Bayer, and product development activities surrounding projects with ... partners [like] IBM, Paradigm Genetics, and ACE Bioscience," Lion reported.


As a result, net loss in the third quarter of fiscal 2002 ballooned to €9.8 million, or €.52 per share, from €2.2 million, or €.15 per share, year over year.


Looking ahead, Lion said it expects R&D spending to increase "at a proportionally lower rate than revenues in order to enable us to generate a corresponding profit margin in the long term."


Shares in the German bioinformatics company were up $.82, or more than 7 percent, to $12 in mid-morning Nasdaq trading.

The Scan

UK Funds to Stay Ahead of Variants

The UK has announced a further £29.3 million to stay on top of SARS-CoV-2 variants, the Guardian reports.

Push for Access

In a letter, researchers in India seek easier access to COVID-19 data, Science reports.

Not as Cold

Late-stage trial results are expected soon for an RNA-based vaccine that could help meet global demand as it does not require very cold storage, the New York Times writes.

Genome Research Papers on Microbes' Effects on Host Transfer RNA, Honeybee Evolution, Single-Cell Histones

In Genome Research this week: influence of microbes on transfer RNA patterns, evolutionary relationships of honeybees, and more.