NEW YORK, Feb 8 - Gene function discovery company Paradigm Genetics said Thursday its fourth quarter revenues shot up to $4.5 million, compared with $1.2 million, while revenues for the year increased to $10.3 million, compared with just $2.2 million in 1999.
The company attributed the increase in revenues to higher throughput from its Gene Function Factory, the release of version 2.0 of FunctionFinder, a bioinformatics tool, and the delivery of assays to Bayer. Paradigm stands to earn up to $40 million from its deal with Bayer.
Paradigm of Research Triangle Park, NC, said that, not including revenues from any potential new collaborations, it expects revenues to increase by 120 percent to 140 percent in 2001, while expenses should increase by only 40 percent to 50 percent.
Total operating expenses for fourth-quarter 2000, excluding non-cash compensation charges, increased to $8.6 million, compared with $4.0 million for the same period in 1999. Total operating expenses for the year, excluding non-cash compensation charges, rose to $27.7 million, compared with $12.2 million in 1999.
Paradigm said the increase reflects the costs associated with ramping up throughput in the GeneFunction Factory and investments in metabolic profiling, microbial genetics, and informatics-based technologies. The company also added 79 research scientists and 22 employees in business development and operations to its staff.
Including non-cash compensation charges, net losses per common share narrowed to $4.2 million, or 16 cents a share, in the fourth quarter, compared with net losses of $3.1 million, or 66 cents a share, in fourth-quarter 1999. Including the charges net losses for the year totaled $29.7 million, or 96 cents a share, compared with net losses of $10.6 million, or $2.51 a share, a year ago.
The company said it would open its third-generation GeneFunction Factory within the next few days.
“The infrastructure is in place to exceed the expectations of our commercial partners, to add new commercial partners and to develop our own products,” said John Ryals, CEO of Paradigm.
The company had cash, cash equivalents, and short-term investments totaling $36.8 million at the end of 2000.