In 2006, research and development costs increased to $6,427,115 from $2,122,383 in 2005, an increase of 202.8%. The increase in research and development expense resulted primarily from research in various projects in the development pipeline, including DNAPrint(TM) Pharmaceutical's EPO project, the ADHD project, the Statinome project, the CD59 diabetes project, the post-operative nausea and vomiting (PONV) project and various amounts invested in research samples used to expand the current product lines.
"We are certainly pleased that so many of our existing products have found acceptance in the marketplace," stated Mr. Gabriel. "We are particularly excited that two patents were granted to DNAPrint(TM) during 2006 -- one for identifying links between gene sequences and medical traits and another for the discovery of a genetic marker for statin-induced myalgia. We look forward to the successful completion of other research projects underway, especially the PT 401 'Super' EPO Dimer for the treatment of anemia, which is undertaken with Harvard Medical School's Beth Israel Deaconess Hospital in Boston. We also are pleased to continue support of the Statinome project for the detection of myalgia, or severe muscle pain, in certain patients, and the Ovanome project, a genetic test for predicting an ovarian cancer patient's response to some first-regimen chemotherapy."
Mr. Gabriel continued, "We have also made rapid progress in funding the development of the CD59 diabetic test product, and we are excited about the new results that will be published either second or third quarter of this year. Diabetes is the number one health crisis facing the U.S. and our work with Harvard Medical School's Dr. Jose Halperin and Dr. Michael Chorev on the CD59 test, is extremely exciting to us and the researchers on both teams."
DNAPrint kept its selling, general and administrative costs increased to only $3,194,122 compared to $2,864,548 for the same period in the prior year, an increase of only 11.5%.
