deCODE genetics, Inc. (deCODE), an in vitro diagnostics company, has reported revenues of $58.1 million for the full year of 2008, compared with the revenues of $40.4 million in the previous year-end. It has reported net loss of $80.9 million, or $1.32 loss per share, for the full year of 2008, compared with the net loss of $95.5 million, or $1.57 loss per share, in the previous year-end.
At December 31, 2008, the company had liquid funds available for operating activities, comprised of cash and cash equivalents together with current investments, of $3.7 million, compared to $64.2 million at December 31, 2007. In early 2009 the company sold its auction rate securities (ARS) for $11.0 million in cash which the company has been using to finance its operating activities. The company believes it has sufficient resources to sustain operations only into the second quarter of this year.
“deCODE has employed its capabilities in medicinal chemistry, structural biology and human genetics to develop a unique portfolio of products and intellectual property with significant commercial potential. However we need to obtain additional funds both to continue operations in the near term and to capture the longer term value of our products. To address this need, the management team and the Board have been focused on pursuing several alternatives that have emerged from the strategic review we began a few months back. We are presently engaged in negotiations on opportunities including the sale of business units and therapeutic programs; licensing agreements for certain of our diagnostics tests; entering large-scale genome sequencing collaborations; restructuring our debt; and obtaining new equity financing. We are committed to advancing deCODE’s work and to realizing the potential of our products. We are actively seeking the resources we require to ensure that we are able to do so,” said Kari Stefansson, CEO of deCODE.
Net loss for the year ended December 31, 2008 was $80.9 million, compared to $95.5 million for the full year 2007. Basic and diluted net loss per share was $1.32 for the full year 2008, compared to $1.57 for the full year 2007. At the close of 2008, the company had approximately 61.8 million shares outstanding.
Revenue for the year ended December 31, 2008 was $58.1 million, versus $40.4 million for the full year 2007. At December 31, 2008, the company had $12.0 million in deferred revenue, which will be recognized over future reporting periods.
Research and development expense for proprietary programs was $30.7 million for the full year 2008, compared to $53.8 million for the full year 2007. Selling, general and administrative expenses for the full year 2008 were $28.3 million, compared to $27.1 million for 2007.
Fourth quarter 2008 results
Revenue for the quarter ended December 31, 2008 was $16.1 million, compared to $13.3 million for the fourth quarter 2007. Net loss for the fourth quarter 2008 was $18.0 million, compared to $32.4 million for the same period a year ago. In the 2008 and 2007 periods, $ 5.5 and $7.8 million of the respective net loss figures were due to ARS-related impairment charges. Research and development expense for proprietary programs was $4.5 million for the fourth quarter 2008 versus $12.6 million for the same period in 2007. For the fourth quarter 2008, selling, general and administrative expenses were $7.3 million versus $7.7 million for the fourth quarter 2007.