Genaissance Posts Mild Growth in Q3 Atop Increases in R&D, Loss
Genaissance Pharmaceuticals reported a modest increase in third-quarter revenue amid greater R&D spending and a slight jump in net loss.
Total revenues for the period ended Sept. 30 increased to $2.6 million from $1.8 million one year ago. R&D spending in the quarter also jumped to $6 million from $4.7 million year over year.
Meantime, third-quarter net loss widened to $5.8 million, or $.25 per share, from $5.2 million, or $.23 per share, last year. Genaissance said it had around $17 million in cash, equivalents, and marketable securities as of Sept. 30.
With $1.6M in Cash, Transgenomic Posts Sharp Decline in Q3 Revenue, Widened Loss
Trangenomic reported a severe decline in total third-quarter revenue atop shrunken R&D spending and a surge in net loss. The company also said it has approximately $1.6 million in cash, equivalents, and short-term investments.
Total revenue for the period ended Sept. 30 fell to $7.5 million from $9 million, led by a 61-percent falloff in receipts from its nucleic-acids business.
R&D spending in the quarter decreased to $2.4 million from $3.2 million year over year, and net loss swelled to $6 million, or $.25 per share, from $4.7 million, or $.20 per share, year over year.
Cepheid and Canada’s Infectio Diagnostics Kill Joint Venture, Pen New Partnership
Cepheid and Quebec-based Infectio Diagnostics have ended their ARIDIA joint venture, saying it “no longer fulfilled the strategic objectives” of either company. The companies have also created a new partnership, they said in a statement.
The companies said that IP developed between them during the course of the collaboration will be shared without rights to sublicense or assign the rights to a third party. However, any intellectual property relating to Cepheid’s GeneXpert system or cartridge is not included in collaboration IP, and is exclusively retained by Cepheid.
Terms of the new agreement call for Cepheid to receive non-exclusive worldwide distribution rights to IDI assays for Group B Streptococcus, methicillin- resistant S. aureus, and vancomycin-resistant Enterococcus that have been configured for use with Cepheid’s Smart Cycler system. IDI will retain exclusive distribution rights for these assays in Canada.
The Group B. Streptococcus assay — IDI Strep B — is currently sold in the United States and Canada, and IDI has filed the methicillin-resistant S. aureus assay with the US Food and Drug Administration and Health Canada, the company said.
Roche Diagnostics and Health Network Laboratories, a regional provider of medical diagnostics in Pennsylvania and New Jersey, plan to develop a Molecular Center of Excellence in medical diagnostics.
The center, which will be located at HNL’s core lab in Allentown, Pa., will employ Roche’s PCR and other technologies. A spokesman for HNL said the goal of the collaboration will be to identify new diagnostic protocols. To that end, HNL, which has access to 1,500 physicians in the northeastern United States, will gain access to certain Roche molecular diagnostics technologies.
The partners will also trade tissue samples. Initially, with the help of Roche technologies, HNL’s testing will focus on HIV, hepatitis B and C, women’s health, cardiac diseases, and cancer detection.
Orchid Posts Falloff in Q3 Revenues as Losses Shrink
Orchid Biosciences reported a slight decrease in third-quarter revenues amid shrunken R&D expenses and narrowed net losses.
Total revenues for the period ended Sept. 30 fell to $11.8 million from $13.3 million one year ago. This included $886,000 in receipts from the Life Sciences product business it sold in December 2002.
“Continued delays in the release of US federal National Institute of Justice funds” had a negative impact on third-quarter service revenues. Despite the delay, Orchid expects total 2003 revenues of around $50 million.
The company, which two weeks ago announced the pending sale of its diagnostics division to British tool shop Tepnel Life Sciences [see page 1], spent $552,000 on R&D for the third quarter of 2003, which was down from $6.8 million in the year-ago period. Orchid attributed the drop to the divestiture of its SNP-genotyping instrumentation business and the realignment of the GeneShield business, both of which were responsible for the majority of R&D spending in prior years, the company said.
Net losses in the third quarter fell to $3.8 million from $22.3 million in the third quarter of 2002. Orchid said it had $10.8 million in cash and equivalents as of Sept. 30.