The company is undertaking a review of its long-term business strategy with the goal of sharpening the focus of its business, selling assets, securing partnerships, and utilizing the resources generated to support product development and marketing efforts in its core business. The company has utilized a 30-day grace period for the scheduled October 15 interest payment on its 3.5% Senior Convertible Notes due 2011 and is reviewing methods for making this payment. Given its current liquid assets, and without paying the interest on its Notes from its present funds, the company must obtain further financial resources through either the implementation of strategic alternatives, corporate partnerships, or the sale of or loans secured by its auction rate securities in order to continue operations beyond the end of this year. The company is focused on reducing expenses and speeding the evaluation of its strategic options in order to obtain the resources to do so.
deCODE has significant operations in Iceland and pays a large
proportion of its fixed costs in Icelandic krona, while its sales are
generally denominated in US dollars and its reporting currency is the US
dollar. During the third quarter and beginning of the fourth quarter the
global financial crisis caused significant economic turmoil in Iceland. As
a result, the value of the Icelandic krona has declined significantly
versus the US dollar. The turmoil in the Icelandic financial sector and
economy as a whole have not to date had any significant adverse impact on
deCODE or its day to day operations. deCODE is monitoring closely the
situation in Iceland, the principal impact of which for the company has
been to decrease the d
|SOURCE deCODE genetics Inc|
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