27 February 2002 11:46 [Source: ICIS news]
LONDON (CNI)--A huge increase in operating costs and capital investment sent losses soaring at UK biotechnology company Oxford BioMedica.
It reported on Wednesday a 77% increase in 2001 full year pre-tax losses to £9.5m ($13.6m/Euro15.6m) as operating expenses increased 69% to £11.4m.
Operating losses almost doubled to £11.0m on turnover down 49% to £373 000.
Investment programmes and expansion more than trebled capital expenditure to £3.2m in the 12 months to 31 December.
Research and development (R&D) spend grew £3.5m to £8.6m as Oxford BioMedica worked to expand and develop its product pipelines after raising £32.3m, net of expenses, through a placing and open offer.
Further investment was directed towards improving facilities and equipment and establishing a US subsidiary.
Chairman Peter Johnson said: "We expect to see results from this investment coming through in 2002 with a substantial expansion of the new clinical programmes arising from our oncology and neurobiology activities as well as a number of new product opportunities."
Cash in the bank on 31 December was £32.6m, compared with £11.6m in 2000.
Shares in Oxford BioMedica dropped 6.6% on the London Stock Exchange (LSE) after the results were released. At 10:05 hours GMT the shares stood at 35 pence.
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