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346% Sequential Quarter-Over-Quarter Growth in Tests Processed by the Company's joint-venture, Innovative Diagnostic Laboratory LLP ("IDL")
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More Than Tripling IDL's ColonSentry® Processing Capacity From 250 Tests Per Day at December 31, 2013 to Over 800 Tests Per Day For June 30, 2014
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Added Beckman Coulter Diagnostics' Prostate Health Index ("PHI") to IDL's menu of advanced cancer assays and initiated a commercial roll out of this groundbreaking test across the United States
TORONTO, May 15, 2014 (GLOBE NEWSWIRE) -- GeneNews Limited (TSX:GEN) ("GeneNews" or the "Company") today reported operational and financial results for the three-month period ended March 31, 2014. All dollar amounts are expressed in Canadian currency unless otherwise indicated and results are reported in accordance with International Financial Reporting Standards.
With a successful limited scale launch of ColonSentry® through IDL in the fourth quarter of 2013, full scale up activities began in Q1-2014, including expanding IDL's lab capacity and increasing the size and scope of the sales activity focused on ColonSentry® as well as the rollout of new tests. As demonstrated in the table below, the number of tests processed by IDL increased significantly throughout the first quarter of 2014:
|
|
Total Tests
Processed |
|
January |
2,267 |
|
February |
5,911 |
|
March |
6,502 |
|
Total: |
14,680 |
"Q1-2104 total test volumes at IDL were up 346% sequentially from Q4-2013 levels and growth is expected to continue throughout the year," commented GeneNews' Executive Chairman, James R. Howard-Tripp. "Indeed, the laboratory processed approximately 13,600 tests in the month of April alone. In order to support the continuing build in sales volume, the laboratory is increasing its processing capacity from approximately 250 tests per day at the end of 2013 to more than 800 per day for June 30, 2014."
As a start-up entity, IDL does not yet have a history of collections of invoiced test revenue and recognizes revenue only upon receipt of payment from its customers. While still early in the process, IDL's initial reimbursement experience for the ColonSentry® test has been positive. However, as a result of customary lag times between when a test is processed and payment is received, IDL's Q1-2014 test volumes are not yet fully reflected in its financial results.
Revenues earned by IDL for the first quarter of 2014 were approximately $0.5 million (US$0.5 million) with costs incurred of approximately $3.4 million (US$3.1 million), resulting in a quarterly IDL loss of approximately $2.9 million (US$2.6 million). As GeneNews has joint control of IDL with its American partners, the Company accounts for its interest in IDL using the equity method. As such, GeneNews reflects its share of the total revenues less total expenses in its consolidated statements of loss and comprehensive loss, which was $1.0 million (US$0.9 million) for the first quarter of 2014.
For the three months ended March 31, 2014, GeneNews' total revenues were approximately $0.2 million as compared to $0.05 million in the same period in 2013. The net loss for the first quarter of 2014 was approximately $1.8 million, or $0.04 loss per common share, as compared to a net loss of approximately $1.5 million, or $0.07 loss per common share for the same three-month period in 2013. The increase in loss in the 2014 first quarter was primarily due to the Company's share of the loss in its investment IDL of $1.0 million, partially offset by a reduction in the restructured research and development costs of $0.5 million and the increase in revenues of $0.2 million.
GeneNews is committed to helping IDL become a leader in molecular diagnostics and personalized medicine, serving as a strong commercialization outlet for advanced cancer tests. Taking a "multi-view" approach to the diagnosis and treatment of cancer, IDL is working to assemble, through a combination of internal pipeline development, third-party licenses and potential acquisitions, a robust menu of advanced cancer assays to be offered by it in the United States.
"A few weeks ago, we were excited to be chosen by an industry leader like Beckman Coulter to make its PHI test available to physicians nationwide through IDL," Mr. Howard-Tripp continued. "The PHI test is a significant step forward in prostate cancer management and IDL is the first laboratory to offer this test to physicians in the U.S. Our sales and marketing efforts have already begun in earnest and we expect the PHI test to have a strong showing at the American Urological Association Annual Meeting that starts later this week in Orlando, Florida."
Mr. Howard-Tripp concluded, "The addition of new tests, such as the recent commercial launches of EarlyCDT®-Lung and PHI, to our lead ColonSentry® offering is a central component of the IDL model which is designed to help accelerate growth and stratify commercial risk by ensuring that multiple tests with differing reimbursement approaches provide a more predictable revenue stream. We look forward to updating our stakeholders as we progress."
The Company's financial statements and management's discussion and analysis are available on www.sedar.com.
About GeneNews
GeneNews is a company focused on developing and commercializing proprietary molecular diagnostic tests for the early detection of diseases and personalized health management, with a primary focus on cancer-related indications. GeneNews' first product, ColonSentry®, is the world's first blood test to assess an individual's current risk for colorectal cancer. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews and IDL, can be found at www.GeneNews.com and www.myinnovativelab.com.
Forward-Looking Statements
This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events, including the launch of ColonSentry® test across the United States and the assembling of a robust menu of other advanced cancer tests to be offered by IDL. The forward-looking statements involve risks and uncertainties, including market reaction to the launch of the ColonSentry® test into new regions, that could cause the Company's actual events to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.
CONTACT: Company Contact:
James R. Howard-Tripp
Executive Chairman
Office: (905) 739-2030
jhoward-tripp@genenews.com
Investor & Media Contact:
Stephen Kilmer
Kilmer Lucas Inc.
Office: (212) 618-6347
Mobile: (905) 906-6908
stephen@kilmerlucas.com
