Paradigm Genetics, Inc. (PDGM) reports an 8 percent increase in revenues, to $5.9 million, compared to first quarter 2001 revenues of $5.5 million. But the life sciences company also says its operating expenses increase 15 percent to $11 million compared to $9.6 million during the same period last year.

Company officials say in the quarterly earnings report that the revenue increase is attributable to “herbicide assays developed by the company under its commercial partnership with Bayer AG” while the operations expense increase comes from investments made into the firm’s “human metabolics platform and related technologies,” according to documents filed with the Securities and Exchange Commission.

Paradigm also recorded a net loss of $5.2 million, or about 16 cents per common share of company stock, compared to a net loss of $4 million during first quarter 2001.

In a statement, interim President and Chief Executive Officer Dr. John Hamer says: “We expect that our quarterly expense base beginning in the third quarter of this year will be about $5 million a year lower than where we were in the first quarter. We are looking forward to continuing to seek additional partnerships in agriculture and healthcare.”

Paradigm also cut grant revenues from its business model, which accounted for $64,863 in cash for first quarter 2001. According to the SEC documents, Paradigm currently has $8.3 million in cash, cash equivalents or short-term investments with current liabilities and stockholder equity showing a deficit of $73.7 million, compared to $85 million during the same period last year.

Shares of Paradigm stock ranged in price from $1.26 to $9.10 during the last 52 weeks, and recently traded near $1.81 after peaking at close to $28 per share in October 2000. Shares of PDGM began 2002 at $3.05. The company’s market capitalizaton is $55.9 million.

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