DiagnoCure announces second quarter 2013 results
QUEBEC CITY, June 3, 2013 /PRNewswire/ - DiagnoCure Inc. (TSX: CUR) (OTCQX: DGCRF) (the "Corporation") today reported financial and operational results for the second quarter ended April 30, 2013. The Corporation announced a net loss of $849,344 or $0.02 per share for this quarter. At the end of the quarter, cash and short-term investments stood at $4,849,305.
Second Quarter Highlights
On April 2, 2013, the Corporation initiated trading on OTCQX International under the symbol "DGCRF". OTCQX is the best U.S. OTC marketplace, providing an opportunity to significantly broaden and enhance DiagnoCure's access to and exposure within the U.S. financial markets. In addition, the Corporation's information has been made available via Standard & Poor's Corporation Records Listing Program.
Because the concept that PCA3 can become a product of reference to help better diagnose prostate cancer patients is becoming more and more evident in the clinical community, we are in the midst of a productive dialogue with Hologic's management regarding ways to optimize the value of PCA3 for both companies.
Despite the current unsettled status of molecular diagnostics reimbursement policy in the U. S., PROGENSA® PCA3 royalties from U.S. sales paid to DiagnoCure in the second quarter by Hologic Gen-Probe increased 21% compared with second quarter results in fiscal year 2012. This increase represents the fifth straight quarter over quarter increase in the U.S. market-associated-PROGENSA® PCA3 second quarters royalties received by DiagnoCure since 2008.
On April 29, 2013, during the Annual and Special Meeting of Shareholders, Dr. Yves Fradet, President and Chief Medical Officer announced the initiation of a search for a full-time CEO to achieve maximum leverage from DiagnoCure's product development platform. The new CEO will be expected to lead and enhance DiagnoCure's business and product development efforts.
Results of the Second Quarter 2013
Total revenues for the second quarter 2013 were $164,262 compared with $1,063,131 for the same period of 2012. This decrease of $898,869 is attributable to the payment made by Gen-Probe in relation to the FDA milestone reached for PROGENSA® PCA3 in the second quarter 2012 ($502,600). The remaining decrease 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 $387,266 of revenues in the second quarter 2012. In the second quarter 2013, royalty revenues from Hologic Gen-Probe decreased by $4,401, or 2.6%, to $164,262, from $168,663 for the same period of 2012. This decrease is attributable to a decrease of 39% in the European market, reflecting a general softness in the European markets offset by an increase of 21% in the U.S. market reflecting primarily an increase in the average selling price of PROGENSA® PCA3. This increase was offset partially by changes in the reimbursement environment for molecular diagnostic tests.
Operating expenses decreased by $321,741, to $1,013,606 for the second quarter of 2013 from $1,335,347 for the same period of 2012. This decrease was mainly attributable to the termination of the development agreement performed in Q2 2012 in support to the PrevistageTM GCC Colorectal Cancer Staging Test.
Financial Data
| For the three months periods ended April 30 |
||
| 2013 | 2012 | |
| $ | $ | |
| Research collaboration revenues | — | 387,266 |
| License and royalty revenues | 164,262 | 675,865 |
| Total revenues | 164,262 | 1,063,131 |
| Operating expenses (before stock-based compensation, depreciation and amortization) | 774,042 | 1,052,250 |
| Net profit (loss) (before stock-based compensation, depreciation and amortization) | (609,780) | 10,881 |
| Stock-based compensation | 22,094 | 43,813 |
| Depreciation of property, plant and equipment | 17,865 | 31,691 |
| Amortization of intangible asset | 199,605 | 207,593 |
| Net loss and comprehensive loss | (849,344) | (272,216) |
| Basic and diluted net loss per share | (0.02) | (0.01) |
| Weighted average number of common shares outstanding | 43,040,471 | 43,033,471 |
Consolidated Balance Sheets
| April 30, 2013 | October 31, 2012 | |
| Cash, cash equivalents, temporary and long-term investments | 4,849,305 | 5,824,771 |
| Total assets | 9,673,265 | 11,256,369 |
| Shareholders' equity | 8,871,282 | 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 June 3, 2013. Interested participants may listen to the call by dialing 1-888-231-8191 or 514-807-9895 and referencing code 77464078 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 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 using PCA3, 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.
Share this article