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deCODE genetics Announces Second Quarter 2008 Financial Results
Date:8/6/2008

enue was $30.0 million, compared to $16.2 million for the same period last year. As of June 30, 2008, the company had $15.1 million in deferred revenue that will be recognized over future reporting periods. The period-on-period increase in revenue for the second quarter and first half of 2008 was driven principally by growth in the company's genomic services business, which includes the company's diagnostics, deCODEme(TM) personal genome analysis, and contract genotyping businesses.

Research and development expense was $8.0 million for the second quarter of this year, compared to $14.5 million for the same period last year. For the first six months of 2008, R&D expense was $20.6 million, compared to $27.2 million for the first six months of 2007. Our research and development expense in the first six months of the year reflects the conclusion of clinical pharmacology studies in our most advanced drug development programs, the launch of our prostate cancer and glaucoma diagnostics tests, and the advancement of gene and target discovery work in a range of major disease areas.

Selling, general and administrative expense for the second quarter of 2008 was $7.1 million, compared to $6.8 million for the 2007 period. For the first half of the year, SG&A expense was $14.4 million in 2008 and $12.3 million in 2007. The increases in SG&A expense year-on-year reflect principally the build-up of our sales efforts for the company's diagnostics and deCODEme(TM) businesses.

At June 30, 2008, the company had $49.4 million in cash and investments. This includes $23.7 million in cash, cash equivalents and current investments, $5.1 million in restricted cash equivalents, and $20.6 million in non-current investments in auction rate securities. At December 31, 2007, the company had $94.1 million in cash, cash equivalents, restricted cash equivalents, and investments.

"Our results for the second quarter reflect our focus on capturing the commercial opportunitie
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