Icelandic biotech deCODE Genetics may become another casualty of tough economic times. The company announced today (August 11) that it has only $3.8 million dollars left in its coffers -- enough to fund operations "into the latter half of the third quarter," which in Iceland runs through September.

In a conference call this morning, the company said it was restructuring its business, dropping its medicinal chemistry and structural biology operations, and instead focusing on providing commercial and consumer genetics services. "We are making good progress in recasting deCODE as a leading DNA-based diagnostics company," Kari Stefansson, the company's CEO, said on the call.

Going forward, said Stefansson, the three main elements of its business will be the company's consumer genome-based diagnostics business decodeME, as well as scientific services (providing genotyping, sequencing, and data management) and out-licensing for genetic markers. A $10 million deal struck in April, for example, granted genomics company Celera a license to use deCODE-discovered markers for cardiovascular and metabolic disease risk. More such deals, or an alternative infusion of funds, will be needed to keep the company in business, however.

The company's stock hit bottom in October last year, though since mid-April it has been steadily increasing from approximately 20 cents a share to 65 cents a share. (Today's stock price as of noon EST is at 61 cents a share.)

The company's fall would be "a substantial blow to the field of complex trait genetics," the blog Genetic Future pointed out, noting that deCODE has "generated an insanely large number of Nature Genetics publications."


Related stories:

One biotech gasps for breath
[10th August 2009]

DeCODE falls from NASDAQ grace
[18th November 2008 ]

Trouble for deCODE
[14th October 2008]