deCODE still working to address need for liquidity beyond second quarter

By Jennifer Lanning Drey

Portland, Ore., May 12 - deCODE Genetics, Inc. continues to work to address a potential third-quarter liquidity shortfall through discussions regarding a possible restructuring of its convertible debt, by seeking new investors and pursuing asset sales, Kari Stefansson, chief executive officer of deCODE, said Tuesday during the company's first-quarter earnings conference call.

Measures to control internal costs, as well as licensing agreements signed with Celera Corp. and the sale of auction-rate securities have helped the company's liquidity, he said.

At March 31, deCODE had cash and cash equivalents of $6.1 million, up from cash and cash equivalents of $3.7 million at Dec. 31.

As previously reported, the company projects it has sufficient resources to sustain operations through the second quarter.

deCODE's first-quarter revenue declined to $8.9 million, down from $15.0 million in the first quarter of 2008, largely driven by lower contract service revenues.

The net loss for the first quarter improved to $12.6 million, compared to $26.7 million for the same period in 2008, reflecting the company's narrowing of its focus on applying its established capabilities in human genetics.

Research and development expense for proprietary programs was $4.2 million for the quarter, compared to $12.7 million for the same period of last year.

deCODE is a Reykjavik, Iceland-based biopharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.