The pioneering Icelandic biotech deCode Genetics is on the financial hot seat, saying that it doesn't have enough money on hand to make it through the year.
Over recent years deCode has made a host of headline-grabbing breakthroughs on genetics and personalized medicine. But the London Times notes that investors never really bought into their ability to reap significant financial rewards from the work. And an attempt to market a consumer DNA test to evaluate disease risk has failed to gain much traction against the competition. That combination of disappointing sales and a bleak outlook can be the kiss of death in this stormy economic climate.
DeCode, however, isn't ready to call it quits. The company says it has a deal to gain new backing.
"We have lined up investors willing to come into the company with new money once we restructure our debts," said CEO Kari Stefansson. "At the end of the tunnel, once we emerge, we have a business, we believe, with spectacular potential."
- read the report in The Times