Genelabs narrows net loss in 2006 to $8.7M

USA-based drugmaker Genelabs Technologies says that, for the year ended December 31, 2006, it saw revenues of $11.2 million, compared to $6.8 million in 2005, as operating expenses reached $20.6 million versus $18.2 million. Despite this, the company narrowed its net loss in 2006 to $8.7 million, or $0.41 per share, from $10.8 million, or $0.61 per share.

The increase in revenue during the period resulted mainly from Genelabs' non-nucleoside collaboration with Novartis Institutes for BioMedical Research, targeted at the hepatitis C virus, which started in June 2006. Revenue from this collaboration includes ongoing research funding as well as a portion of the $12.5 million up-front license fee received from the Swiss drug major in 2006, which is being recognized on a straight line basis over the three-year term of Genelabs' potential obligations under the accord.

In addition, during 2006, the Redwood City, California-headquartered firm continued to recognize revenue from its HCV research accord with fellow USA-based Gilead Sciences and from its collaborations for the development and commercialization of Prestara (GL701), with generic drugmaker Watson and Japan's Tanabe Seiyaku.