Genesis Research Derives Surplus
Genesis Research Derives Surplus From Fourfold Revenue Increase
Auckland, New Zealand, 31 January 2001 – Genesis Research [NZSE & ASX: GEN] today announced a Net Surplus for the year ended 31st December 2000 of $723,000. This compares with a deficit of $7.15 million for the previous year and the $9.97 million loss forecast in the company’s recent investment statement and prospectus. The improved results were achieved through Genesis sublicensing its PVAC™ vaccine for the treatment of psoriasis to partners in Japan and North America, as a result of which total operating income effectively quadrupled to $28.66 million (up 298% from $7.19 million).
The company finished the year with cash reserves of $61.93 million as a result of the receipt of these upfront licensing payments and the capital raising undertaken during the year.
In accordance with the policy of the Board, as noted in the August 2000 investment statement and prospectus, no dividend will be paid.
The increased revenues, together with the successful capital raising programme enabled Genesis to increase expenditure on research and development to $18.9 million, up 58% from $11.9 million in 1999. Funds were applied to research into new therapeutics and other potential products as well as the Phase II Clinical trials currently being conducted in USA, Brazil and Philippines. Genesis has not received the results of these trials yet but expects to announce the results of the USA trial early in February. At 31st December Genesis’ 24 hour 7 day sequencing facility had developed over 1 million EST sequences in its database. This now includes the largest forestry tree EST collection in the world, as well as specialised human, bovine, ovine, cervine, fruit tree, forage grass and microbe databases.
“As this result shows, the prime beneficiary of Genesis’ revenue growth and capital raising is our enhanced research programme,” said Founder and CEO Dr James Watson. “To operate from this solid base gives us an immense advantage in what is a highly competitive environment.”
Staff numbers rose during the year from 83 to 124 through an active national and international recruitment programme.
Genesis is a New Zealand-based biotechnology company whose core business is genomics – the translation and use of the chemical information carried within genes of living organisms. Genesis specialises in discovery, building EST databases from a diverse range of carefully selected gene pools, targeting genes, promoters or proteins that have commercial value through their potential ability to alter a living process or to create a new industrial process. Genesis is not a manufacturer or distributor of products: it mines these databases, and uses collaboration with industry partners, to develop innovative biotechnology products of commercial value from its discovery activities. Genesis has vaccine therapeutics in clinical trials which are novel because they can be used to treat immune disorders not generally caused by infection. Genesis also uses technologies applied in the health field to develop novel products in the areas of agriculture, horticulture and forestry in which our New Zealand primary producer partners lead the world.