deCODE genetics

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deCODE genetics, Inc.
Type	Public NASDAQ: DCGN
Founded	1996
Headquarters	Reykjavík, Iceland
Key people	Kári Stefánsson, Chairman & CEO
Industry	Genetics
Revenue	USD 43.95M
Employees	480
Website	www.decode.com

deCODE genetics, Inc. (Íslensk erfðagreining in Icelandic) NASDAQ: DCGN is a biopharmaceutical company based in Reykjavík, Iceland. The company was founded in 1996 to identify human genes associated with common diseases using population studies, and apply the knowledge gained to guide the development of candidate drugs. So far the company has isolated genes believed to be involved in cardiovascular disease, cancer and schizophrenia, among other diseases (The company's research concerning the latter is said to represent the first time a gene has been identified by two independent studies to be associated with schizophrenia^{[citation needed]} ).

deCODE's approach to identifying genes, and in particular its attempt to set up an Icelandic Health Sector Database (HSD) containing the medical records and genealogical and genetic data of all Icelanders, has been very controversial, and prompted national and international criticism for its approach to the concepts of privacy and consent [1] A legal judgement from the Icelandic Supreme Court in November 2003 effectively killed off the HSD project [2]. However, the company believes it can continue to identify disease-related genes without such a database^[1]

As a step toward the personal genome, the company has announced that its deCODEme service is available for $985 to anyone who wishes to send a cheek swab to learn details about ancestry or disease risk. More than one million single nucleotide polymorphisms are included in the test. Family history often affects disease risk, but not always. Clients are expected to use good judgment in evaluation information about their risk for Alzheimer's Disease, heart disease, cancer, etc. ^[2]^[3]^[4]

1 SEC filing
2 See also
3 References
4 External links

[edit] SEC filing

deCODE's most recent 10-K SEC filing reveals that their net losses to date are in excess of 530 million dollars, and that they have never turned a profit^[5]:

If we continue to incur operating losses longer than anticipated, or in amounts greater than anticipated, we may be unable to continue our operations.

We incurred a net loss of $85.5 million, $62.8 million and $57.3 million for the years ended December 31, 2006, 2005 and 2004, respectively, and had an accumulated deficit of $535.7 million at December 31, 2006. We have never generated a profit and we have not generated revenues except for payments received in connection with our research and development collaborations with Roche, Merck and others, from contract services, from sales of Emerald BioSystems products and instruments, and grant funding. Our research and development expenditures and selling, general and administrative costs have exceeded our revenue to date, and we expect to spend significant additional amounts to fund research and development in order to enhance our core technologies and undertake product development (including drug development and related clinical trials). We do not expect to receive royalties or other revenues from commercial sales of products developed using our technology in the near term. It may be several years before product revenues materialize, if they do at all. As a result, we expect to incur net losses for several years. If the time required to generate product revenues and achieve profitability is longer than we currently anticipate, or if the level of losses is greater than we currently anticipate, we may not be able to continue our operations.

The same SEC filing indicates that deCODE is involved in a lawsuit against former employees for computer fraud and disclosure of confidential information.

If we are not successful in our pending litigation regarding misappropriation of trade secrets and breach of related non-competition, non-solicitation and non-disclosure agreements, our ability to protect our confidential information and to enforce non-competition and non-solicitation agreements against former employees may be impaired, which could adversely affect our business and prospects.

On August 4, 2006 we commenced an action in the U.S. District Court for the Eastern District of Pennsylvania against five former employees for misappropriation of our trade secrets and intellectual property, related breach of non-competition, non-solicitation, and non-disclosure provisions of their employment agreements, and violation of the federal Computer Fraud and Abuse Act in connection with their employment by The Children’s Hospital of Philadelphia (CHOP). It is possible that a judgment against us with respect to our allegations of trade secret misappropriation may negatively affect our ability to protect some of what we consider to be our confidential information under the law of trade secrets. Also, it is possible that a judgment against us with respect to the non-competition, non-solicitation, or non-disclosure agreements with the individual defendants (1) would allow the defendants to engage in competition with us, (2) may cause other current or former employees to test the validity of their non-competition, non-solicitation, and non-disclosure agreements when they might otherwise have refrained from doing so, or (3) may cause other institutions besides CHOP to hire our current or former employees when they might otherwise have refrained from doing so. Any of these events could impair our ability to compete for collaborative arrangements, for access to DNA samples or for product or technology licensing arrangements and ultimately could adversely affect our ability to develop and market products.

[edit] See also

Genomics
Kári Stefánsson (co-founder and CEO of deCODE)
deCODEme, deCODEme
23andMe, a company offering a service similar to deCODEme

[edit] References

^ McKie, Robin (May 16, 2004). Icelandic DNA project hit by privacy storm. The Observer International. Guardian Unlimite. Retrieved on 2007-11-17.
^ Wade, Nicholas (November 16, 2007). Company Offers Genome Assessments. Science. The New York Times. Retrieved on 2007-11-17.
^ Firm offers online DNA analysis. Science/Nature. BBC News (November 16, 2007). Retrieved on 2007-11-17.
^ Cookson, Clive (November 17, 2007). NA test brings personal genome closer. Business/Financial Times. MSNBC. Retrieved on 2007-11-17.
^ deCODE genetics, SEC Edgar 10-K, 12-31-2006. Retrieved on 2007-11-18.