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Proteome Sciences' 2010 Revenues up Sharply on Settlement

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Proteomics reagents and biomarker firm Proteome Sciences today reported that its revenues for 2010 jumped more than seven-fold as a result of a large settlement with Sanofi-Aventis Deutschland.

For the year, the UK company posted revenues of £9.9 million ($16.3 million), up from £1.3 million ($2.1 million) a year ago, with the increase the result of a payment of £9.5 million in September from Sanofi-Aventis to settle a dispute over certain warranties. Proteome Sciences had filed a court claim against the drug firm in connection with a sales and transfer agreement concerning a share and limited partnership interest in Xzillion Proteomics, which Proteome Sciences acquired from Sanofi-Aventis in 2002.

In a statement, Proteome Sciences CEO Christopher Pearce said that the conclusion of the dispute "will free up a significant amount of executive time to deliver sales and revenue growth" moving ahead.

Proteome Sciences also generated £336,628 in other revenue for 2010, a 148 percent spike from £135,694 a year ago. License agreement fees for the year fell to zero from £1.2 million a year ago, however.

The company saw a profit of £4.6 million, or 2.79 pence per share, in 2010, compared to a loss of £4 million, or 3.02 pence per share, in 2009.

It ended 2010 with £9.5 million in cash and cash equivalents.

In a letter to the firm's shareholders, Proteome Sciences Chairman Steve Harris highlighted growth initiatives for 2011, which include the recruitment of a senior-level business development and sales executive in the US and another for Europe in order to drive revenues.

During 2010, Oncimmune removed Proteome Sciences' annexin 1 autoantibody biomarker from its lung cancer assay. The two firms reached a licensing deal for the biomarker in 2009.

In his shareholder letter, Harris said the decision "in no way reflects on the utility or performance of annexin 1 as a strong validated early diagnostic biomarker for screening lung cancer, nor will it affect our ability to outlicense it in combination with our other biomarkers."

Revenues from Oncimmune's CLIA test to date have been "very modest," and will have a "minimal effect on future revenue," Harris said. Proteome Sciences is developing its own testing platform and assays for cancer and anticipates launches in 2012.

In July, the company launched two mass spectrometry-based assays for Alzheimer's disease, and in 2011 and 2012 additional assays for the disease will be introduced.

Lastly, Proteome Sciences is working to expand the plexing capabilities of its TMT reagents, and "[c]ommerical development of the prototype 12-plex and 18-plex TMT reagents is a high priority," Harris said.