NEW YORK (GenomeWeb News) – Transgenomic reported after the close of the market yesterday that its fourth-quarter revenues rose 7 percent year over year, and the firm swung from a loss to a profit.
The Omaha, Neb.-based molecular diagnostics and pharmacogenomics firm brought in total revenues of $6.5 million for the three-month period ended Dec. 31, compared to $6.1 million for the fourth quarter of 2008.
Transgenomic reported a profit of $129,000, or $0.00 per share, compared to a loss of $219,000, or $0.00 per share for Q4 2008.
The firm's R&D spending increased to $714,000 from $649,000, while its SG&A expenses were $2.4 million compared to $2 million for the comparable period of 2008.
"We took a number of steps in the fourth quarter of 2009 that are expected to have a positive effect on the financial performance of Transgenomic for many years to come, as we added to and enhanced our platform technologies for use in drug discovery and in diagnostic screening," Transgenomic President and CEO Craig Tuttle said in a statement. "The decision to execute the broad and exclusive license agreement with Dana-Farber Cancer Institute for Cold-PCR already is proving to be a wise one, as it gives us the ability to improve the sensitivity of a multitude of genetic tests while adding new ones to our product offerings."
The firm inked the licensing deal with Dana-Farber in October. It granted Transgenomic the rights to the Cold-PCR technology, which it said preferentially amplifies segments of DNA that contain mutations, thereby increasing the sensitivity of downstream mutation-detection methods by a factor of 10 to 100.
For full-year 2009, Transgenomic had revenues of $22 million, down 8 percent from $24 million for FY 2008.
Its net loss for the year was $1.9 million, or $.04 per share, up from $495,000, or $.01 per share, for 2008.
Transgenomic's R&D spending for the year increased to $3.2 million from $2.5 million, and its SG&A spending declined to $10.3 million from $10.8 million.
The company finished the year with $$5.6 million in cash and cash equivalents.
Earlier this week, Transgenomic filed a suit against Power3 Medical Products alleging that it had wrongly terminated a licensing deal between the firms, as well as accusing Power3 of breach of contract, fraud, and slander, among other claims. The suit is related to Transegnomic's rights to market and sell Power3's test for neurodegenerative diseases.
Though Transgenomic did not mention the suit in its financial results release, Tuttle said in the statement, "We continue to be in full compliance with the license terms, maintaining our worldwide rights to this exclusive license."