Genetically modified salmon developed by AquaBounty. (Photo: AquaBounty)
Despite the losses, AquaBounty, bets in its biotechnology products
Friday, February 27, 2015, 23:50 (GMT + 9)
AquaBounty reported a net loss of USD 7.1 million for the year ended December 31 vs. USD 4.3 million in 2013, due to higher operating spend and investments in operations and research projects.
The company did not report any revenue, and the wider loss was caused by sales and marketing costs doubling to USD 1.4 million from USD 678,153 a year earlier, while research and development costs rose to USD 2.5 million (USD 1.9 million in 2013) and general and administrative costs reached USD 3.2 million compared to USD 2.3 million in the prior report.
Meanwhile, the company's two main projects are waiting the approval from the US Food and Drug Administration (FDA).
The first one is a new animal drug application, which so far, has had no further demands and no new scientific or legal argument being presented against its use. Therefore, the firm would eventually move forwards its commercialization.
On the other hand, the AquAdvantage® Salmon project, developed with a gene from the chinook salmon, providing the fish the potential to grow to market size in half the time of conventional salmon, is also expecting the approval for this GM fish to be launched into the market.
“In allowing the Arctic Apple and Innate Potato to be deregulated and planted for commercial use, the U.S. Department of Agriculture sent a clear signal that they are interested in science-based regulation and addressing future food needs," said Ron Stotish, Chief Executive Officer of AquaBounty.
"We are encouraged by this because the key reason given by the USDA in deregulating these two food products – ‘not likely to have a significant impact on the human environment’ – mirrors the conclusion arrived at by the FDA about our AquAdvantage® Salmon. Consequently, we remain confident that the FDA will also approve our application. Meanwhile, the Company continues to make plans for the commercialization phase that will commence immediately following receipt of the approval,” he concluded.
Notwithstanding, Environment Canada recognized that AquAdvantage hatchery, which produces sterile, all-female eggs, was no longer solely a research facility but could produce eggs on a commercial scale without harm to the environment or human health.
The pioneering biotechnology company has also progressed towards registering its common shares with the U.S. Securities and Exchange Commission for a listing on NASDAQ.
In January 2014, Intrexon Corporation agreed to undertake a subscription for new common shares to the value of USD 10.0 million before expenses, which provided the company strong support.
-AquaBounty rejects 'misinterpretation' of environment authority's sanctions
-AquaBounty authorised for commercial GM salmon production
-AquaBounty CEO 'disappointed' by another setback
-AquaBounty still confident its transgenic salmon will be approved