the punch line.....
Drug-Lead Discovery Business
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In October 1995, the Company entered the drug-lead discovery business by forming
a new company to develop a novel, small molecule drug discovery platform. The company, DGI BioTechnologies (DGI), is majority-owned and fully funded by the
Company and occupies specially designed laboratory space at the Company's
headquarters facility in Edison, New Jersey. DGI's operations have had a
significant negative impact on the Company's 2000 and 1999 earnings and will
continue to do so. During the six months ended June 30, 2000 and 1999,
$1,795,000 and $1,412,000, respectively, of research and development expenses
were charged to operations. During the 2000 and 1999 periods DGI also recorded
$235,000 and $1,600,000, respectively, of revenues primarily for services and
licensing fees related to the Research and License Agreement with Novo Nordisk
A/S. Management believes DGI needs to become financially self-sufficient in
2000 and all options are being explored, including pursuing additional alliances
as well as actively seeking strategic partners. |
