NEW YORK (GenomeWeb News) – Rosetta Genomics today announced revenues for the fourth quarter dropped to $45,000 from $119,000 a year ago, a 62 percent retreat.
For the three months ended Dec. 31, 2010, the company posted a net loss of $3.7 million, or $.21 per share, an 8 percent decline from a little more than $4 million, $.28 per share, from the fourth quarter of 2009.
On a non-GAAP basis, Rosetta saw a loss of $.20 per share, down from $.25 per share a year ago.
The Rehovot, Israel-based molecular diagnostics company reduced R&D costs 29 percent to $1.2 million from $1.7 million a year ago due primarily to lowered costs related to salaries and development resulting from the firm's restructuring announced in the fall, the company said.
SG&A expenses also shrank, to $2.2 million during the quarter from $2.5 million a year ago, a 12 percent change.
For full-year 2010, Rosetta posted receipts of $279,000, up 86 percent from $150,000 in 2009.
R&D spending decreased 2 percent year over year to $6.5 million from $6.6 million, while SG&A costs rose 2 percent to $8.3 million from $8.1 million a year ago.
Net loss for 2010 retreated to $14.8 million, or $.87 per share, a 10 percent improvement from $16.5 million, $1.22 per share, in 2009. On an adjusted basis, Rosetta had a net loss of $.84 per share, down from $1.12 per share in 2009.
The company had cash and cash equivalents of $2.7 million as of Dec. 31, it said.
In a statement, Kenneth Berlin, president and CEO of Rosetta, called 2010 a "challenging but rewarding year." He added that the firm is "very excited about our new strategic direction for US commercial operations," and Rosetta is recruiting about five independent sales representatives with an oncology focus to launch its microRNA-based diagnostic tests in "several key oncology markets on the East coast. Our strategy is to focus our resources on commercializing our miRview mets tests as they address an important unmet medical need and largest, near-term market opportunity."
As a result of Rosetta's commercial focus on those tests, it will delay its planned launch of its miRview kidney test for the identification of four histological types of renal tumors, and its miRview meso prognostic for sub-classifying mesothelioma patients, "as these tests represent smaller market opportunities."
Berlin added that the company has prioritized the development of Rosetta's Gen 3 products, moving forward. The products leverage miRNA biomarkers from body fluids. Rosetta will focus on very large market opportunities in cardiovascular disease, neurodegenerative disease, women's health, and the early detection of certain cancers, he said.
The company had been warned by Nasdaq that it was in danger of being delisted because it did not meet certain minimum requirements. Last month, though, Rosetta announced it had met at least one requirement.
In early morning trading today, shares of Rosetta were up about 6 percent to $.54 on Nasdaq.