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2008-10-16 Leading Polish cancer geneticists are investing in new R&D center

"Read-Gene is planning to invest 7 mln PLN (2 mln EUR) in research and development center construction" - said Jacob Lasota from Doradztwo Ekonomiczne Dariusz Zarzecki, a company which is Read-Gene advisor.

"In the beginning of 2009 we are planning to start construction works of new R&D center, which are currently in the final phase of planning. The investment is planned to be finished by the next year end. The whole investment will cost approximately 7 million PLN "- said Lasota.

"Independent R&D center will enable Read Gene development of projects on its own research and thanks to clinical laboratory it will also enable their fully independent service, what should result in increased profitability "- added Lasota.

Private emission, launched prior to the Read Gene debut on the NewConnect, allowed company to acquire approximately 5 mln PLN (1.41 mln EUR).

"We were planning to acquire between 4 and 6 mln PLN in new emission. We succeeded to gain 4.8 mln PLN." – said Lasota.

The new emission represents 12.67 % of the company capital. Obtained funds will be spent on expansion of DNA tests on line shop, the construction of the R&D center and Read Gene’s own research.

It was confirmed by the Read-Gene management that they have already signed few contracts for clinical trials with pharmaceutical corporations.

"So far we have signed eight agreements. Their total value is around 1.5 million zloty. We are still negotiating next contracts, so the total income will be increased "- said Jan Lubinski, Read-Gene CEO

"The value of five already signed contracts is around 1,4 mln PLN” - announced Lasota.

Read-Gene does not preclude the transfer either to the Warsaw Stock Exchange main market, or to a foreign stock exchange.

"Transfer to the Warsaw Stock Exchange is planned within next 2-3 years, but because of the company’s nature it may be one of the foreign markets, alternatively "- said Lasota.

Although the company was founded in 2005, the actual operating activity began in the second half of 2008. This is the reason why the company have not presented financial results.

"For the next two years, we have estimated income of 2-3 mln EUR per year "- said Lubinski.

Read-Gene is the first and the only one medical company operating in the personalized medicine area. The main areas of its activities are genetic tests, clinical trials, chemoprevention and drug repositioning.

M. Mackowski
Source: GPW