DeCODE genetics

Infobox_Company
company_name = deCODE genetics, Inc.
company_
company_type = Public nasdaq|DCGN
company_slogan =
foundation = 1996
location = Reykjavík, Iceland
key_people = Kári Stefánsson, Chairman & CEO
num_employees = 480
industry = Genetics
products =
revenue = USD 43.95M | homepage = [http://www.decode.com/ www.decode.com]

deCODE genetics, Inc. ("Íslensk erfðagreining" in Icelandic) nasdaq|DCGN is a biopharmaceutical company based in Reykjavík, Iceland. The company was founded in 1996 to identify human genes associated with common diseases using population studies, and apply the knowledge gained to guide the development of candidate drugs. So far the company has isolated genes believed to be involved in cardiovascular disease, cancer and schizophrenia, among other diseases (the company's research concerning the latter is said to represent the first time a gene has been identified by two independent studies to be associated with schizophrenia [cite web | last = Stefansson | first = Hreinn et al | title = Association of Neuregulin 1 with Schizophrenia Confirmed in a Scottish Population | publisher = Am J Hum Genet. | date = 2003-01 | url = http://www.pubmedcentral.nih.gov/articlerender.fcgi?tool=pubmed&pubmedid=12478479 | accessdate = 2008-07-10 ] Fact|date=February 2007 ).

deCODE's approach to identifying genes, and in particular its attempt to set up an Icelandic Health Sector Database (HSD) containing the medical records and genealogical and genetic data of all Icelanders, has been very controversial, and prompted national and international criticism for its approach to the concepts of privacy and consent [http://econpapers.repec.org/article/tprinntgg/v_3A1_3Ay_3A2006_3Ai_3A2_3Ap_3A80-105.htm] A legal judgement from the Icelandic Supreme Court in November 2003 effectively killed off the HSD project [http://www.law.ed.ac.uk/ahrb/script-ed/issue2/iceland.asp] . However, the company believes it can continue to identify disease-related genes without such a database [cite web | last = McKie| first = Robin| title = Icelandic DNA project hit by privacy storm | work = The Observer International | publisher = Guardian Unlimite | date = 2004-05-16 | url = http://observer.guardian.co.uk/international/story/0,6903,1217842,00.html| accessdate = 2007-11-17 ]

deCODEme

As a step toward the personal genome, the company has announced that its deCODEme service is available for $985 to anyone who wishes to send a cheek swab to learn details about disease risk and ancestry. This service was launched in November 2007 and thereby became the first web-based service to offer a comprehensive genome scan and an online analysis of an individual's DNA. More than one million single nucleotide polymorphisms are included in the scan [http://www.snpedia.com/index.php?title=DeCODEme] [http://www.illumina.com/media.ilmn?Title=human1m-duo%20beadchip%20content&

] . deCODEme claims that the DNA profile it provides can supply its customers with a basis from which they are able calculate the relative risk of developing these diseases and thereby enable them to make better informed decisions about prevention (medical) and treatment. The deCODEme service currently includes information on the genetic susceptibility to close to 30 common diseases such as myocardial infarction, atrial fibrillation, several types of cancers and type-2 diabetes as well as providing insights into distant ancestry and geographical origins.

EC filing

deCODE's most recent [http://www.sec.gov/Archives/edgar/data/1022974/000110465907019321/a07-5795_110k.htm 10-K SEC filing] reveals that their net losses to date are in excess of 530 million dollars, and that they have never turned a profit [cite web | title = deCODE genetics, SEC Edgar 10-K, 12-31-2006| url = http://www.sec.gov/Archives/edgar/data/1022974/000110465907019321/a07-5795_110k.htm| accessdate = 2007-11-18 ] :

"If we continue to incur operating losses longer than anticipated, or in amounts greater than anticipated, we may be unable to continue our operations."

We incurred a net loss of $85.5 million, $62.8 million and $57.3 million for the years ended December 31, 2006, 2005 and 2004, respectively, and had an accumulated deficit of $535.7 million at December 31, 2006. We have never generated a profit and we have not generated revenues except for payments received in connection with our research and development collaborations with Roche, Merck and others, from contract services, from sales of Emerald BioSystems products and instruments, and grant funding. Our research and development expenditures and selling, general and administrative costs have exceeded our revenue to date, and we expect to spend significant additional amounts to fund research and development in order to enhance our core technologies and undertake product development (including drug development and related clinical trials). We do not expect to receive royalties or other revenues from commercial sales of products developed using our technology in the near term. It may be several years before product revenues materialize, if they do at all. As a result, we expect to incur net losses for several years. If the time required to generate product revenues and achieve profitability is longer than we currently anticipate, or if the level of losses is greater than we currently anticipate, we may not be able to continue our operations.

The same SEC filing indicates that deCODE is involved in a lawsuit against former employees for computer fraud and disclosure of confidential information.

"If we are not successful in our pending litigation regarding misappropriation of trade secrets and breach of related non-competition, non-solicitation and non-disclosure agreements, our ability to protect our confidential information and to enforce non-competition and non-solicitation agreements against former employees may be impaired, which could adversely affect our business and prospects."

On August 4, 2006 we commenced an action in the U.S. District Court for the Eastern District of Pennsylvania against five former employees for misappropriation of our trade secrets and intellectual property, related breach of non-competition, non-solicitation, and non-disclosure provisions of their employment agreements, and violation of the federal Computer Fraud and Abuse Act in connection with their employment by The Children’s Hospital of Philadelphia (CHOP). It is possible that a judgment against us with respect to our allegations of trade secret misappropriation may negatively affect our ability to protect some of what we consider to be our confidential information under the law of trade secrets. Also, it is possible that a judgment against us with respect to the non-competition, non-solicitation, or non-disclosure agreements with the individual defendants (1) would allow the defendants to engage in competition with us, (2) may cause other current or former employees to test the validity of their non-competition, non-solicitation, and non-disclosure agreements when they might otherwise have refrained from doing so, or (3) may cause other institutions besides CHOP to hire our current or former employees when they might otherwise have refrained from doing so. Any of these events could impair our ability to compete for collaborative arrangements, for access to DNA samples or for product or technology licensing arrangements and ultimately could adversely affect our ability to develop and market products.

ee also

*Genomics
*Kári Stefánsson (co-founder and CEO of deCODE)
*23andMe, a company offering a service similar to deCODEme

References

External links

* [http://www.decode.com/ deCODE Genetics Inc. website]
* [http://www.decodeme.com/ deCODEme website]
* [http://www.decodeyou.com/ deCODEyou blogsite]