NEW YORK (GenomeWeb News) – Rosetta Genomics reported after the close of the market Tuesday that its second-quarter net loss rose 62 percent, as well as plans to eventually spin off its new cleantech division.
The Rehovot, Israel-based developer of microRNA-based tests brought in revenues of $14,000 for the three-month period ended June 30, compared to no revenues for the second quarter of 2008. Rosetta noted that revenues it previously reported for Parkway Clinical Laboratories, which it sold for $2.5 million during the quarter, is now recorded under discontinued operations.
Rosetta's net loss for the quarter was $6 million, or $.44 per share, up from $3.7 million, or $.31 per share, for the second quarter of 2009. The Q2 2009 loss includes $2.2 million attributed to the discontinued operations.
Rosetta's R&D spending dropped 36 percent to $1.4 million from $2.2 million year over year, while its SG&A expenses increased 69 percent. During the past year, the firm has launched three of its miRNA-based diagnostic tests for cancer.
"Building on distribution agreements covering the US, Israel and Turkey, we continued to build commercial momentum by signing three additional agreements for our first microRNA tests, which diagnose cancer metastases and differentiate between two types of lung cancer," Amir Avniel, CEO of Rosetta Genomics, said in a statement. "Our goal is through distribution agreements to provide access to our products to 1.5 billion people around the globe by the end of this year."
Rosetta finished the quarter with $6.4 million in cash and cash equivalents, $9 million in short-term bank deposits, and $1.2 million in marketable securities.
The firm also announced that Avniel would step down as CEO of Rosetta Genomics once a successor is in place. He will instead run the firm's new cleantech business, called Rosetta Green, which will use the firm's microRNA technology in energy and agriculture applications.
The company intends to eventually spin off or sell this business.