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Auckland, New Zealand
February 7, 2003
Genesis Research and
Development Corporation Limited [NZSE & ASX: GEN] today
announced that it finished the 2002 year with cash reserves of
$36.3 million, sufficient to fund its current and
planned research and trial programmes for the foreseeable
future.
For the twelve months to 31st
December 2002 the Company reported a net deficit of $10.7
million (2001: $9.6 million) on operating revenues of $16.3
million (2001: $19.9 million), of which $10.7 million was
derived from research collaborations and grants. It invested
$15.1 million in research expenditure
(2001: $20.5 million), including clinical trial costs of $3.3
million.
Concerted efforts by management
to control costs resulted in total expenditure reducing from
$29.5 million to $26.9 million. This enabled the Company to
maintain its strong ongoing research and development programme
while reducing its net cash outflow to $10.1 million (2001:
$12,8 million). As at December 31, 2002, the Company had $36.3
million in cash, or $1.39 per share (2001: $47.9 million, or
$1.84 per share).
The Company ended the year with
154 staff (2001: 159), of whom 135 are scientists. As at 31
December it held 60 issued patents (2001: 35).
"As an early stage biotech
company, Genesis does not expect to produce consistent operating
surpluses, says Chairman, David Irving. "Our objectives are to
ensure that Genesis is able to weather the current difficult
market conditions while continuing to pursue a strong
commercialisation programme including products in clinical
trials."
"The deficit represents the
Company's net investment in R&D, creating opportunities for
future revenue streams. To support its ongoing research and
development activities Genesis continues to earn significant
revenues from grants, carrying out research services and through
licensing its technology to
other parties. This eases the cash burn rate and makes Genesis
unusually financially self sufficient in comparison with other
globally oriented research-based biotechnology companies."
Highlights for 2002
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January |
Initiated a
joint venture discovery programme on the genetics of
Botrytis cinerea with LandCare Research New Zealand Ltd |
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February |
Signed a three-year research and development agreement with
Immunex on selected
proprietary molecules. |
| May |
Phase I safety study of AVACTM for the treatment of atopic
dermatitis (eczema)
in adults showed AVAC was safe and well tolerated. |
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June |
Initiated an additional Phase II U.S. clinical study, in
partnership with Corixa, to evaluate the potential
effectiveness of PVAC treatment for patients with mild to
moderate plaque psoriasis.
Commenced a new study to evaluate the potential
effectiveness of PVAC treatment in conjunction with Ultra
Violet-B (UVB) light for patients with mild to moderate
plaque psoriasis. |
|
July |
Transferred from a Foreign Exempt listing on the Australian
Stock Exchange to a
full listing.
Received a $6.0 million four-year
grant from the Foundation for Research, Science and
Technology to identify new plant hormones. |
|
August |
Initiated a Phase I safety study for AVAC treatment of
atopic dermatitis for children 5 - 16. |
|
October |
Completed enrolment of patients in PVAC / UVB trial for
psoriasis. |
|
November |
Commenced, with SR Pharma, a Phase II, randomised,
placebo-controlled, trial of SRP 299 (a killed Mycobacterium
vaccae suspension) for the treatment of moderate-to-severe
atopic dermatitis in children 5 - 16. |
|
December |
New plant growth
facilities completed. |
Pipeline
Numerous product candidates are
moving through a series of experiments to compare and evaluate
their biological properties against other product candidates:
* A BioStore solution is
currently being commercially tested by potential
collaborators for development as a red cell storage agent.
* Zyrogen (previously called FGFR5), an immune modulator, is
being
targeted in both B cell autoimmune disorders and bone
development.
* Epigen, a novel skin growth factor is being screened for
clinical
involvement in skin growth and some cancers.
* YB-1 is being evaluated as a therapeutic target.
* A range of novel antigens and immune modulators are being
rigorously
analysed for use in vaccines, including a tuberculosis vaccine,
and for use in
treatment of a range of immune disorders.
* A range of plant gene products is in development through
strong
collaborations with ArborGen and Wrightson.
The Company's Annual Meeting will
be held in Auckland on 11th April 2003.
Founded in 1994, Genesis is a
New Zealand-based biotechnology company committed to the
building of a broad genomic platform for the development of
innovative products in health and plant biotechnology. Genesis
partners with industry leaders to develop products which have
global market potential through the mining of its extensive
microbe, plant and mammalian EST databases. The Health
Division has three programmes in human clinical development for
the treatment of psoriasis, atopic dermatitis (eczema) and
asthma, with additional programmes for cancer and other
indications in pre-clinical development. The patented BioStore
solutions for storage of tissues and living cells are also in
pre-clinical development. Collaborations are maintained with
Amgen Inc (NASDAQ: AMGN), Corixa Corporation (NASDAQ: CRXA), SR
Pharma (LSE: SPA), and Jurox Pty Ltd.
The Plant division has research collaborations with ArborGen,
Wrightson (NZSE: WRI), HortResearch, AgResearch, and Landcare.
Genesis is also undertaking significant unpartnered research
programmes in novel plant hormones.
The company has an extensive health and plant patent
portfolio. For more information, please visit
www.genesis.co.nz
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