NEW YORK, Nov. 8 – Orchid BioSciences of Princeton, NJ, said Thursday its third quarter revenues rose 51 percent in the third quarter to $7.4 million, compared with $4.9 million, in the year ago period.
Orchid attributed the increase to revenues from its genotyping services and product sales.
"We continued to deliver on our unique business strategy by achieving strong revenue growth while successfully launching a major new product, forming new commercial collaborations, signing on new customers for our leading genotyping products and services, and strengthening our technology IP portfolio," Dale Pfost, Orchid’s CEO, said in a statement.
Orchid said that going forward it expected to see a continued increase in its revenues. The company said that its acquisition of Lifecodes, a developer of genomics tests, would contribute to revenues, which are estimated to total more than $50 million in 2002.
In addition, the company’s new diagnostics unit is expected to generate more than $12 million in revenues in 2002.
The higher revenues came amidst a surge in operating expenses, which more than tripled to $49.7 million, compared with $15.1 million, for the third quarter of 2000.
Orchid said the increase came primarily from higher research and development and product development activities.
Orchid’s net losses also widened sharply. Including charges, the company posted a third quarter net loss of $41.9 million, or $1.06 a share, compared with $9 million, or 27 cents a share, in the year ago quarter.
Excluding non-cash compensation, certain research and development and other one-time charges, Orchid’s net losses would have totaled would 32 cents a share, compared with 18 cents a share a year ago.
The company expects to be cash accretive in about 12 months.
At the end of the month Orchid had cash, cash equivalents and short-term investments totaling $52.7 million.