WALTHAM, Mass.--Genome Therapeutics here has reported financial results for its fiscal year and fourth quarter of 1997 that show a drop in revenues and a net loss, compared to a profit for the same period last year. The company's financial year ended on August 31.
Genome Therapeutics' total revenues for fiscal 1997 were $19.6 million, compared to $21.3 million for fiscal 1996, with a net loss in fiscal 1997 of $11.3 million, or 64 cents per share, compared to net income of $1.9 million, or 11 cents per share, the previous year. However, the loss doesn't include revenues from a newly signed antifungal alliance, multiple database subscriptions, and milestone payments that were expected in fiscal 1997 but which actually occurred in the first few weeks of fiscal 1998, the company's management noted.
The decline in revenues is the result of a reduction in government contract research and grants, as the company refocuses on supporting commercial partnerships, the firm added.
"These results reflect our commitment to build Genome Thera peutics into a fully integrated genomics discovery company that will attract revenue-producing partnerships and alliances," explained Robert Hennessey, Genome Therapeutics' chairman, president, and CEO. "To strengthen our leadership in pathogen genomics and expand our human genomics programs, we have made prudent investments in building our scientific capabilities, especially in the areas of bioinformatics and functional genomics. We will continue to make these investments as needed in the future to maintain our position as a leader in the genomics industry."
Hennessey also noted that Genome Therapeutics has recently launched PathoGenome, which he called "the world's most comprehensive commercial database of genomic information on pathogens," signed an exclusive human genomics partnership for asthma, and extended an existing H. pylori alliance with Astra.