Losses at the biotechnology company Modex Therapeutics of canton Vaud have increased considerably during the first nine months.

The start-up company reported on Monday a loss of nearly $6.6 million (SFr10.8 million) in the period from January to September, some 61.6 per cent higher than the comparable period last year.

The operational loss reached SFr12.4 million or almost 70 per cent higher, while the cash flow tripled, rising from Sfr468,000 to SFr1.5 million.

Modex Therapeutics, which has said it does not expect to make a profit before 2003-2004, said in a statement that the loss of SFr10.8 million was "in line with our forecast".

Because it is a start-up company, the losses were expected, the company said.

"Strong" financial base

Despite the losses, the company said it had a strong financial base. As of September 30, the cash and short-term investments amount to SFr59.6 million and provide Modex with the financial resources to drive further growth of the company, the statement commented.

"I am pleased to report very strong operational and financial progress at Modex during Q3," said company chief executive officer Jacques Essinger.

Operating expenses for the quarter of SFr4.6 million were more than double the previous year due to the increased development costs of EpiDex, a skin replacement product for chronic wounds.

Modex said it was "excited" by final positive results of EpiDex. The clinical data would accelerate its market launch and support the start of a clinical trial in the United States in early 2002, the statement added.

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