An Oxfordshire genetics firm is helping its loss-making US parent company to deliver "exceptional" sales growth.

Orchid BioSciences, which last year took over Abingdon-based Cellmark Diagnostics, said it expected to be profitable by late next year, several months earlier than first expected.

Cellmark Diagnostic supplies DNA tests for paternity cases and forensic investigations to pharmaceutical, biotechnology, agricultural and academic customers.

Donald Marvin, chief operating officer and chief financial officer of Orchid, said: "We anticipate strong sales growth in each of our four revenue-producing business units, accompanied by margin improvements and selective reductions in spending.

"Based on our current projections, we also expect that we will be able to further accelerate our estimated timetable to achieve profitability, and now expect to be cash flow positive by late 2003, thereby completing our transformation from a late-stage development firm to a high-growth operating company."

Orchid said it expected revenues for 2001 of about £40m, more than doubling projected revenues.

Orchid will release its fourth quarter and year-end financial results on Thursday, February 28.