REYKJAVIK, Iceland, May 11 /PRNewswire-FirstCall/ -- deCODE genetics (Nasdaq:DCGN) today announced its consolidated financial results for the quarter ended March 31, 2009. A conference call to discuss these results and recent developments in the company's business will be webcast live tomorrow, Tuesday, May 12, at 8:00am Eastern Daylight Time/12 noon GMT/1pm British Summer Time (details below).

Net loss for the quarter ended March 31, 2009 was $12.6 million, compared to $26.7 million for the first quarter 2008. Basic and diluted net loss per share was $0.21 for the first quarter 2009, compared to $0.44 for first quarter last year. At March 31, 2009, the company had approximately 61.8 million shares outstanding.

Revenue for the first quarter 2009 was $8.9 million, versus $15.0 million for the first quarter last year. This decline is due principally to lower contract service revenues. At March 31, 2009, the company had $12.7 million in deferred revenue, which will be recognized over future reporting periods.

Research and development expense for proprietary programs was $4.2 million for the first quarter of this year, compared to $12.7 million for the same period last year. This reflects the company's current focus on applying its established capabilities in human genetics to drive its diagnostics and deCODEme businesses, and the curtailment of investment in clinical trials for its therapeutics programs reflected in the 2008 period. Selling, general and administrative expenses for the first quarter 2009 were $4.9 million, compared to $7.2 million for the first quarter 2008.

At March 31, 2009, the company had cash and cash equivalents of $6.1 million, compared to $3.7 million at December 31, 2008. In early 2009 the company sold its auction rate securities (ARS) for approximately $11.0 million in cash, and last month, the company signed licensing agreements with Celera Corporation under which it received an upfront payment and will receive royalties on sales of Celera testing products and services incorporating deCODE genetic risk markers. The company believes it has sufficient resources to sustain operations through the second quarter of this year.

'Over the past few months we have been recasting deCODE's business around what we do best: discover genetic risk factors for common diseases and apply those findings in tests and services that can improve the prevention and treatment of disease. Our partnership with Celera is one facet of this strategy. Preliminary acceptance of our US patent application for one of our major genetic risk markers also underscores the wisdom of our approach to intellectual property, both for differentiating our products from the rest of the field and for pursuing additional licensing partnerships. At the same time, we are engaged in negotiations on large-scale sequencing collaborations, debt restructuring and equity financing, and on the sale of certain business units and therapeutics programs. Our aim in pursuing all of these opportunities is to position deCODE to capture the commercial potential of our leadership in human genetics,' said Kari Stefansson, CEO of deCODE.

    Recent operating highlights include:
    Product Development and Partnerships
    - Celera. Last month, deCODE entered into agreements with Celera
      Corporation under which it has granted Celera non-exclusive worldwide
      licenses to deCODE's genetic markers for increased risk of major
      cardiovascular and metabolic diseases, including heart attack, stroke,
      atrial fibrillation (AF) and type 2 diabetes (T2D). The markers include
      SNPs discovered by deCODE on chromosome 9p21 linked to increased risk
      of heart attack and types of aneurysm, on chromosome 4q25 conferring
      risk of AF and stroke, and in the TCF7L2 gene linked to increased risk
      of T2D. These markers, which deCODE uses in its own risk assessment
      tests and deCODEme service, are among the highest impact and best-
      validated genetic risk factors for these conditions. Celera plans to
      incorporate them into risk assessment and testing services offered by
      its subsidiary Berkeley HeartLab, and deCODE will receive royalties on
      sales of tests and services utilizing its markers.
    - deCODEme(TM) personal genome scans.