Biosearch Italia results in line with expectations

Biosearch Italia says that revenues for the first nine months of 2001reached 6.3 million euros ($5.7 million), a decrease of 28.5% compared with the like, year-earlier period, but in line with expectations. This reporting period's figures included milestone payments of approximately 1.7 million euros, sparked by the start of Phase II trials of its novel antibiotic dalbavancin by partner Versicor (Marketletter May 28), and research grants of about 3.2 million euros. Biosearch's net loss for the period was 10.6 million euros.

Operating expenses were 11 million euros, due mainly to costs incurred by Biosearch for the development of the antibiotic ramoplanin, which is in Phase III. The company noted that its cash burn over the nine months was around 10 million euros, although this figure is set to fall significantly as the cost of developing ramoplanin in the USA has been undertaken by Genome Therapeutics, the new licensee (Marketletter October 15). The latter has also paid a $2 million upfront fee in order to secure North American rights to the drug.