NEW YORK, Nov. 7 - Paradigm Genetics yesterday reported a 16-percent drop in third-quarter revenues, though cuts in R&D spending helped narrow net loss.
For the period ended Sept. 30, Paradigm posted $5.2 million in total revenues compared with $6.3 million one year ago. The company said the decrease, which was expected, resulted from a slowdown in throughput as the research from its GeneFunction Factory deal with Bayer moved away from target discovery and into the assay-development stage.
R&D spending fell in the third quarter to $6.4 million from $7.4 million, as total expenses saw similar cuts, according to Paradigm. The company said the reduced expenses can be attributed to a restructuring plan that ended in April.
Also helping out in the cost-reduction department was Paradigm's decision to divest its ParaGen business. The unit, which performed plant-genotyping services, will not help Paradigm's toxicogenomics or biomarker-discovery programs, the company said.
"We feel ParaGen will be more attractive to companies focused on plant breeding," Paradigm said of the unit it bought from Celera in December 2001. No further information was provided, and company officials did not immediately return telephone calls seeking comment.
Consequently, third-quarter net loss fell to $3.9 million, or $.12 per share, from $4.0 million, or $.15 per share, over the same period one year earlier, Paradigm said.
Paradigm said it had roughly $9.4 million in cash, cash equivalents, and short-term investments as of Sept. 30.
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