deCODE genetics, Inc. Announces Full-year 2007 Financial Results
REYKJAVIK, ICELAND, March 12 /PRNewswire-FirstCall/ -- deCODE genetics today announced its consolidated financial results for the quarter and year ended December 31, 2007. A conference call to discuss the year's results and operating highlights will be webcast live tomorrow, Thursday, March 13, at 8:00am EDT/12 noon GMT (details below).
Net loss for the year ended December 31, 2007 was $95.5 million, compared to $85.5 million for the full year 2006. Basic and diluted net loss per share was $1.57 for the full year 2007, compared to $1.49 for the full year 2006. At the close of 2007, the company had approximately 61.7 million shares outstanding.
Revenue for the year ended December 31, 2007 was $40.4 million, versus $40.5 million for the full year 2006. At December 31, 2007, the company had $15.4 million in deferred revenue, which will be recognized over future reporting periods.
Research and development expense for proprietary programs was $53.8 million for the full year 2007, compared to $57.1 million for the full year 2006. Selling, general and administrative expenses for the full year 2007 were $27.1 million, compared to $25.2 million for 2006.
At December 31, 2007, the company had $94.1 million in cash and cash equivalents, restricted cash equivalents and current and non-current investments, compared to $152.0 million at December 31, 2006. As discussed below, the year end 2007 figure includes temporary and other-than-temporary impairment charges resulting from an independent, third-party estimate of the current value of certain auction-rate securities (ARS) held by the company.
"Over the past year we have made steady progress in both our near-term and long-term strategy to capitalize on our leadership in human genetics. We have brought to market pioneering DNA-based risk assessment tests for type 2 diabetes, early-onset heart attack, atrial fibrillation/stroke, prostate cancer, and glaucoma, and launched the world's first personal genome analysis service, deCODEme(TM). With these diagnostics and personal genome products on the market, and others to be launched in the months ahead, deCODE is focused on capturing the potential of our competitive advantage in human genetics, at the same time as we seek partnerships to advance our therapeutics programs and to most efficiently allocate spending and spread risk. We are committed to executing on this strategy and to ensuring we have the cash resources to maximize the creation of value for the company and its shareholders," said Kari Stefansson, CEO of deCODE.
Fourth quarter 2007 results
Revenue for the quarter ended December 31, 2007 was $13.3 million, compared to $11.5 million for the fourth quarter 2006. Net loss for the fourth quarter 2007 was $32.4 million, compared to $23.2 million for the same period a year ago. $7.8 million of the fourth quarter net loss figure is due to ARS- related impairment charges. Research and development expense for proprietary programs decreased to $12.6 million for the fourth quarter 2007 from $14.2 million for the same period in 2006. For the fourth quarter 2007, selling, general and administrative expenses were $7.7 million versus $8.6 million for the fourth quarter 2006.
deCODE is a biopharmaceutical company applying its discoveries in human genetics to the development of drugs and diagnostics for common diseases. deCODE is a global leader in gene discovery - our population approach and resources have enabled us to isolate key genes contributing to major public health challenges from cardiovascular disease to cancer, genes that are providing us with drug targets rooted in the basic biology of disease. deCODE is also leveraging its expertise in human genetics and integrated drug discovery and development capabilities to offer innovative products and services in personal genome analysis, DNA-based diagnostics, bioinformatics, genotyping, structural biology, drug discovery and clinical development. deCODE is delivering on the promise of the new genetics.(SM) Visit us on the web at www.decode.com; on our diagnostics website at www.decodediagnostics.com; and, for our pioneering personal genome analysis service, at www.decodeme.com.
Conference Call Information
A conference call, during which deCODE President and CEO Kari Stefansson and CFO Lance Thibault will discuss the past year's financial results and operating highlights, will be webcast tomorrow, Thursday, March 13, at 8:00am EDT/12 noon GMT. The webcast can be accessed via the Investors section of deCODE's website, www.decode.com, or through www.fulldisclosure.com. A replay of the call will be available on these websites for at least one week following the call. A digitized telephone replay of the call can be accessed for the week following the call by dialing 1 800 475 6701 from the US, or +1 320 365 3844 from outside the US. The access code is 914354.
Any statements contained in this presentation that relate to future plans, events or performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, and the timing of events, to differ materially from those described in the forward-looking statements. These risks and uncertainties include, among others, those relating to our ability to obtain financing and to form collaborative relationships, uncertainty regarding potential future deterioration in the market for auction rate securities which could result in additional permanent impairment charges, our ability to develop and market diagnostic products, the level of third party reimbursement for our products, risks related to preclinical and clinical development of pharmaceutical products, including the identification of compounds and the completion of clinical trials, the effect of government regulation and the regulatory approval processes, market acceptance, our ability to obtain and protect intellectual property rights for our products, dependence on collaborative relationships, the effect of competitive products, industry trends and other risks identified in deCODE's filings with the Securities and Exchange Commission, including, without limitation, the risk factors identified in our most recent Annual Report on Form 10-K and any updates to those risk factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. deCODE undertakes no obligation to update or alter these forward-looking statements as a result of new information, future events or otherwise.
CONTACT: Joy Bessenger, +354-570-1900, +1-212-481-3891, email@example.com,
Berglind Olafsdottir, +354-570-1900, firstname.lastname@example.org, Edward Farmer,
+1-212-343-2819, email@example.com, all of deCODE genetics
Web site: http://www.decode.com/