Acambis' 2005 losses rise due to R&D focus

Cambridge, UK-headquartered vaccine specialist Acambis says that its losses for the year ended December 31, 2005, were L26.0 million ($45.1 million), up from the L19.7 million loss the firm saw in 2004. The company says that this increase is partially explained by its increased investment in R&D during the year which was L34.1 million, up from the L29.3 million it spent in 2004.

Despite the increased losses Acambis remains positive about it position, citing the L40.9 million in revenue it made during the year, which was in excess of analysts' forecasts. In addition, company chairman Alan Smith said that 60% of this revenue had come from its activites in the fourth quarter of 2005, indicating some of the challenges associated with reliance on biodefense contracts to produce turnover. Mr Smith said that the firm would continue to broaden its portfolio, seeking opportunities to build more mainstream revenues.

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