Strong Royalty Revenues Increase of 39 % from Hologic
Gen-Probe
partnership
QUEBEC CITY, Sept. 4, 2013
/PRNewswire/ - DiagnoCure Inc. (TSX: CUR)
(OTCQX: DGCRF) (the "Corporation") today reported financial and
operational results for the third quarter ended July 31, 2013. The
Corporation announced royalty revenues from Hologic Gen-Probe
increased
39% in the third quarter, compared to the same period of 2012.
This
increase is attributable to an increase of 82% in the U.S.
market
amidst challenges in the reimbursement environment for
molecular
diagnostic. For this quarter, the Corporation announced a net loss
of
$595,262 or $0.01 per share. At the end of the quarter, cash
and
short-term investments stood at $4,592,221.
Third Quarter Highlights
On June 3, 2013, DiagnoCure reported
positive results of a new study for
its PrevistageTM GCC Colorectal Cancer Staging Test
during the 2013 ASCO Annual Meeting held in Chicago, Illinois. On a
validation set, including 463 untreated stage II (T3N0) colon
cancer
patients from North American and European sites, the study showed
that
molecular staging based on GCC LNR status was able to predict
higher
recurrence risk for 195 patients (42%) treated by surgery alone.
None
of the patients in the study had been treated with adjuvant
chemotherapy because their lymph nodes appeared cancer?free by
examination under the microscope, yet 10% of them had a disease
recurrence or died from cancer afterwards. These findings
complement
those obtained during the first phase of the prospectively
specified
multi?center VITAR study performed on 241 stage II CC patients
which
were published in 2011 (Sargent, Annals Surg Onc 2011).
Effective September 1, 2013
DiagnoCure appointed Mr. Richard
Bordeleau
as Senior Advisor to the Company. Mr. Bordeleau acts as an
executive in
residence and reports directly to DiagnoCure's board of directors.
In
collaboration with Company management, Mr. Bordeleau's initial
mandate
is to identify and implement short-term actions aimed at
increasing
shareholder value, and to evaluate mid- to long-term scenarios
optimizing corporate value.
Results of the Third Quarter 2013
Total revenues for the third quarter 2013 were $189,585 compared with
$709,754 for the same period of 2012.
This decrease of $520,169 is
attributable to the termination, on January 11, 2013 of the development
and license agreements signed in June
2011 with Signal Genetics. That
development agreement provided $567,652 of revenues in the third
quarter 2012. In the third quarter 2013, royalty revenues from
Hologic
Gen-Probe increased by $52,742, or
39%, to $189,585, from $136,843 for
the same period of 2012. This increase is attributable to an
increase
of 82% in the U.S. market amidst challenges in the
reimbursement
environment for molecular diagnostic tests offset by a decrease of
25%
in the European market.
Operating expenses decreased by $530,956, to $784,847 for the third
quarter of 2013 from $1,315,803 for
the same period of 2012. This
decrease is mainly attributable to the termination of the
development
agreement performed in Q3 2012 in support to the
PrevistageTM GCC Colorectal Cancer Staging Test.
Financial Data
|
For the three months periods ended
July 31
|
2013
|
2012
|
|
$
|
$
|
Research collaboration revenues
|
—
|
567,652
|
License and royalty revenues
|
189,585
|
142,102
|
Total revenues
|
189,585
|
709,754
|
Operating expenses (before stock-based compensation, depreciation
and
amortization)
|
541,338
|
1,029,933
|
Net loss (before stock-based compensation, depreciation and
amortization)
|
(351,753)
|
(320,179)
|
Stock-based compensation
|
26,929
|
43,356
|
Depreciation of property, plant and equipment
|
16,806
|
30,661
|
Amortization of intangible asset
|
199,774
|
211,853
|
Net loss and comprehensive loss
|
(595,262)
|
(606,049)
|
Basic and diluted net loss per share
|
(0.01)
|
(0.01)
|
Weighted average number of common shares outstanding
|
43,040,471
|
43,033,471
|
Consolidated Balance Sheets
|
July 31, 2013
|
October 31, 2012
|
Cash, cash equivalents, temporary and long-term
investments
|
4,592,221
|
5,824,771
|
Total assets
|
8,967,451
|
11,256,369
|
Shareholders' equity
|
8,302,949
|
10,448,087
|
Number of shares outstanding
|
43,040,471
|
43,040,471
|
Conference call
DiagnoCure's management will host a conference call at 4:30 p.m. (EDT)
on September 4, 2013. Interested
participants may listen to the call by
dialing 1-888-390-0546 or 514-225-6995 and referencing code
78274536
approximately 15 minutes prior to the call. The Corporation will
also
provide a live webcast of the call. Interested participants may
access
the webcast on DiagnoCure's website at www.diagnocure.com, through
a link on the Investors page - Presentations. A replay of
the
webcast will be available on DiagnoCure's website for those unable
to
participate in the live webcast.
About DiagnoCure
DiagnoCure (TSX: CUR; OTCQX: DGCRF) is a life sciences corporation
that
develops and commercializes high-value cancer diagnostic tests
that
increase clinician and patient confidence in making critical
treatment
decisions. In 2008, the Corporation launched a colorectal
cancer
staging test through its U.S. CLIA laboratory. PrevistageTM GCC
is
currently available for licensing. The Corporation has granted
a
worldwide exclusive license on PCA3 to Gen-Probe, now a
wholly-owned
subsidiary of Hologic Inc. operating as Hologic Gen-Probe, for
the
development and commercialization of a prostate cancer test,
DiagnoCure's proprietary molecular biomarker. Hologic
Gen-Probe's
PROGENSA® PCA3 test is commercialized in Europe under CE mark and is
approved for commercialization in Canada and the
United States. For
more information, please visit www.diagnocure.com.
Forward?looking statements
This release may contain forward?looking statements that involve
known
and unknown risks, uncertainties and assumptions that may cause
actual
results to differ materially from those expected.
Forward-looking
statements can be identified by the use of the conditional or
forward-looking terminology such as "anticipates", "assumes",
"believes", "estimates", "expects", "intend", "may", "plans",
"projects", "should", "will", or the negative thereof or other
variations thereon. Forward-looking statements also include any
other
statements that do not refer to historical facts. All such
forward-looking statements are made pursuant to the
"safe-harbour"
provisions of applicable Canadian securities laws. By their
very
nature, forward?looking statements are based on expectations
and
hypotheses and also involve risks and uncertainties, known and
unknown,
many of which are beyond DiagnoCure's control. Forward-looking
statements are presented for the purpose of assisting investors
and
others in understanding certain key elements of the
Corporation's
current objectives, strategic priorities, expectations and plans,
and
in obtaining a better understanding of the Corporation's business
and
anticipated operating environment. Readers are cautioned that
such
information may not be appropriate for other purposes and that
they
should not place undue reliance on these forward?looking
statements.
For instance, any forward-looking statements regarding the outcome
of
research and development projects, clinical studies and future
revenues, including those related to PROGENSA® PCA3, are based
on
management expectations and such outcome may vary materially
depending
on global political and economic conditions, dependence on
collaboration partners, uncertainty of healthcare reimbursement,
and
marketing and distribution challenges. In addition, the reader
is
referred to the applicable general risks and uncertainties
described in
DiagnoCure's most recent Annual Information Form under the
heading
"Risk Factors". DiagnoCure undertakes no obligation to publicly
update
or revise any forward?looking statements contained herein
unless
required by the applicable securities laws and regulations.
SOURCE DiagnoCure inc.