NEW YORK, May 2 – Paradigm Genetics’ gene function discovery partnerships with Monsanto and Bayer began to pay off as its first quarter revenues surged to $5.5 million, compared to $593,000 for the first quarter of 2000, the company said Wednesday.
Paradigm, which has an agreement with Monsanto to deliver information on gene function for agricultural products in development, delivered 20 percent more information to the company than expected, leading to a milestone payment for this information. The company also received a milestone payment from Bayer for delivery of a gene-based herbicide assay.
Paradigm, of Research Triangle Park, NC, also reported an increase in total operating expenses for the quarter, to $9.6 million, compared ot $5.4 million for the first quarter of 2000.
As the company ramped up construction of its GeneFunction Factory, a laboratory for high throughput gene discovery, R&D expenses doubled to $6.4 million, from $3.1 million for the first quarter of 2000. Sales, general, and administrative expenses also rose to $3.2 million, from $2.3 million in the year-ago quarter.
"We are off to a good start in 2001 and continue to meet the goals we have laid out for ourselves," Paradigm Genetics CEO John Ryals said in a statement. "We have started commercial production in our new third-generation, state-of-the-art GeneFunction Factory.”
The company said it would continue to focus investments on informatics, which it uses in the GeneFunction Factory’s FunctionFinder bioinformatics system. It will also focus on metabolomics, the study of cellular metabolism. The company currently integrates metabolic profiling, a process wherein it determines the types and amounts of chemicals in an organism at a particular time, with gene expression profiling and phenotypic profiling, an approach to determine the physical and chemical characteristics of the organism.
Meanwhile during the quarter, Paradigm’s losses narrowed to $4 million, or 15 cents per share, compared to $16.8 million, or $3.11 per share for the previous year’s first quarter. These losses beat Wall Street’s expectations by two cents, according to a poll of three brokers conducted by FirstCall/Thomson Financial.As of March 31, Paradigm had $27.6 million in cash and cash equivalents in the bank, down from $36 million in the first quarter of 2000.