DeCODE Genetics, the Icelandic company that made a name for itself with its personalized medicine work before running into a financial mud pit, tried to be optimistic today about its future. Right now it only has enough money to survive into the summer.
But the company says it’s restructuring its debt and has new investors lined up to funnel in some much-needed cash. DeCODE has focused on two categories of products: new drugs, including a potential Alzheimer’s drug, and diagnostics. In terms of diagnostics, it has six tests on the market, based on research in Iceland, that aim to measure risk of diseases such as heart attack and prostate cancer. Because the tests are already bringing in revenue and are likely to bring in even more relatively soon, the company said in summarizing its 2008 financial results that it’s shifting its emphasis and resources to them.
“DeCODE is in a very tough spot for the moment,” said Kári Stefánsson, the CEO. Five months ago, he was making the same point. The company was suddenly short millions of dollars when Lehman Brothers, which had managed its money, dissolved, but early this year managed to access those auction-rate securities and sell them for nearly $12 million to keep running.
—Jennifer Couzin-Frankel
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