DiagnoCure announces second quarter 2015 results and restructures its Board of directors
QUEBEC CITY, June 12, 2015 /PRNewswire/ - DiagnoCure, Inc. (TSX: CUR) (OTCQX: DGCRF) (the "Corporation") today reported financial and operational results for the second quarter ended April 30, 2015. The Corporation announced a net loss of $567,991 or $0.01 per share for this quarter. At the end of the quarter, cash and temporary investments stood at $1,574,957. Operating expenses, before restructuring charges of $188,964, decreased by $158,278, to $508,812 for the second quarter of 2015 from $667,090 for the same period of 2014. The net loss before non-cash elements and restructuring charges decreased by a third, from $431,706 for the second quarter of 2014 to $289,228 for the same period of 2015. These decreases are attributable primarily to the reduction of operating expenses implemented in the first quarter of 2015.
Also, as part of the Corporation's continuing plan to improve efficiency and reduce expenses, DiagnoCure has reduced its Board of directors to three independent members. Mr. Andrew J. (Andy) Sheldon leaves the Board but will continue to provide advice on different matters. In addition, Dr. Yves Fradet, founder of the Corporation, has stepped down as Chairman and leaves the Board to concentrate on business and corporate development as President and Chief Medical Officer.
Dr. Jacques Simoneau has been elected Chairman of the Board. As a consequence of these changes, a lead director is no longer required. Dr. Vincent R. Zurawski will join the Audit and Risk Management committee, which will be chaired by Dr. Louise Proulx. Corporate governance, human resources and nominating matters will be addressed directly by the Board. Mr. Richard Bordeleau will continue to report to the Board and work closely with Dr. Fradet advancing important leads in business development and merger activities.
Dr. Simoneau stated, "DiagnoCure wishes to thank Andy for his important contribution to the Board and his willingness to continue to advise the Board despite his heavy workload. I also would like to thank Dr. Fradet for his continued dedication to DiagnoCure's success. At a time when the Corporation is evaluating several business opportunities, the Board remains as committed as ever to the creation of value for its shareholders."
Financial Results for the second Quarter 2015
Total revenues for the second quarter of 2015 were $129,785 compared with $130,493 for the same period of 2014. Without taking into account the effect of the exchange rate variation, total revenues decrease by 10%, to US$107,092 for the second quarter of 2015 compared with US$119,096 for the same period of 2014. This decrease is mainly attributable to a decrease of 27% in PCA3 European royalty revenues as compared to the same period in 2014.
Operating expenses increased by $30,686, to $697,776 for the second quarter of 2015 from $667,090 for the same period of 2014. This increase is mostly attributable to the restructuring charges of $188,964 incurred in the second quarter of 2015. Without the restructuring charges, the operating expenses decreased by $158,278 to $508,812 for the second quarter of 2015 from $667,090 for the second quarter of 2014. This decrease is mostly attributable to the operating expenses reduction implemented in the first quarter of 2015 and to the completion of the multicenter prospective study of the new multi-markers prostate cancer test. Before the restructuring charges, total operating expenses decreased primarily as a result of the following:
- Research and development expenses, net of investment tax credits, before restructuring charges of $154,978, decreased by $104,153, to $156,764 for the second quarter of 2015 from $260,917 for the same period of 2014. This decrease in research and development expenses is attributable to the completion of the new multimarker prostate cancer test multicenter prospective study.
- General and administrative expenses, before restructuring charges of $33,986, decreased by $61,419, to $288,727 for the second quarter of 2015 from $350,146 for the same period of 2014. This decrease is attributable to the operating expenses reduction announced in October 2014 and to reduction in professional fees.
- Selling and business development expenses decreased by $7,515, to $49,799 for the second quarter of 2015 from $57,314 for the same period of 2014.
- Financial revenues decreased by $5,890, to $3,681 for the second quarter of 2015 compared with $9,571 for the same period of 2014.
Financial Data
| For the three-month periods ended April 30 |
||
| 2015 |
2014 |
|
| $ |
$ |
|
| License and royalty revenues |
129,785 |
130,493 |
| Total revenues |
129,785 |
130,493 |
| Operating expenses (before stock-based compensation, depreciation, amortization and restructuring charges) |
419,013 |
562,199 |
| Net loss (before stock-based compensation, depreciation, amortization and restructuring charges) |
(289,228) |
(431,706) |
| Stock-based compensation |
6,948 |
20,527 |
| Depreciation of property, plant and equipment |
13,606 |
14,620 |
| Amortization of intangible asset |
69,245 |
69,744 |
| Restructuring charges |
188,964 |
— |
| Net loss and comprehensive loss |
(567,991) |
(536,597) |
| Basic and diluted net loss per share |
(0.01) |
(0.01) |
| Weighted average number of common shares outstanding |
43,040,471 |
43,040,471 |
Consolidated Balance Sheets
| April 30, 2015 |
October 31, 2014 |
|
| Cash and temporary investments |
1,574,957 |
2,227,326 |
| Total assets |
4,772,111 |
5,532,382 |
| Shareholders' equity |
4,152,241 |
5,039,573 |
| Number of commons shares outstanding |
43,040,471 |
43,040,471 |
About DiagnoCure
DiagnoCure (TSX: CUR; OTCQX: DGCRF) is a life sciences corporation that develops and provides molecular and genomic tests to support effective clinical decisions enabling personalized medicine in oncology. Previstage ® GCC and the Corporation new multimarker prostate cancer test are currently available for licensing. The Corporation has granted a worldwide exclusive license on PCA3 for the development and commercialization of a prostate cancer test which is now 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 PCP, 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.
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