Q3 Revenue up 81% year over year
- Leveraged the financings from the Unit Private Placement and the Lind Convertible Security to significantly accelerate
promotional activities
- Expanded outreach to enrolled and active practices to accelerate growth. New practices awaiting full on-boarding increasing
steadily.
- Conducted early cancer testing for colorectal, lung, prostate and breast cancers in two High Risk Employee groups;
preparing for testing of further groups now.
- Approximately 1600 tests processed during the quarter.
- Direct to Consumer testing continues to be built-out, with new initiatives tied to launch of new website and soon a
dedicated consumer site.
- Implementation continues within several large healthcare systems with support of LifeX.
- Rebranding of company into single entity behind proven Sentinel Principle technology and advancement of Aristotle: early
detection of ten cancers from a single blood sample - a $2 billion opportunity.
- Subsequent to the Quarter: Test volume in October up 30% over previous months.
TORONTO, Nov. 15, 2018 /CNW/ - GeneNews Limited (TSX:GEN)
("GeneNews" or the "Company") today announced operational and financial results for the three-month and nine-month periods ended
September 30, 2018 and provided a progress update on its business.
"Billing revenue is up markedly (+81%) from a year ago when we began the process of switching billing companies, and very
significantly from last quarter (654%) as the new process gains traction," commented James R Howard-Tripp, GeneNews' Chairman and
CEO. "Q3 tests started aggressively, with test volume up 40% during July, but the full quarter was impacted by the hurricanes
that affected the South and South East of the U.S., our larger customer states. Test volume in October is again showing growth,
with testing of High-Risk employees contributing."
Howard-Tripp further commented, "GeneNews and LifeX this morning announced a partnership which has two specific near-term
objectives: the first is to expand the adoption and use of GeneNews' 'liquid biopsy', for the early diagnosis of cancer
into large, multi-entity healthcare systems; the second objective is to fully develop and market GeneNews' Aristotle platform,
specifically, the first-in-class early detection of ten cancers from a single sample of blood. It is GeneNews' and LifeX's intent
to have a transformational effect on early cancer screening and diagnosis."
Q3 2018 Financial Results
All amounts are expressed in U.S. dollars unless otherwise stated and results are reported in accordance with International
Financial Reporting Standards.
For the three-month period ended September 30, 2018, we reported a consolidated net loss of
$0.7 million, or $0.01 loss per common share, as compared with a
consolidated net loss of $0.6 million, or $0.01 loss per common
share, for the three-month period ended September 30, 2017. The $0.07
million increased loss results from the $0.07 million impact of the revaluation of warrants,
$0.02 change in fair value of conversion liability, the $0.01
increase in finance costs, the $0.1 million increase in cost of goods sold, offset by the
$0.04 million increase in revenue and $0.1 million reduction in
general and administrative costs.
For the nine-month period ended September 30, 2018, we reported a consolidated net loss of
$3.9 million, or $0.03 loss per common share, as compared with a
consolidated net loss of $2.6 million, or $0.04 loss per common
share, for the nine-month period ended September 30, 2017. The $1.3
million increased loss results from the $0.7 million impact of the revaluation of warrants,
$0.6 million change in fair value of conversion liability, the $0.6
million increase in finance costs and the $0.2 million decline in test revenue, offset by
$0.6 million lower general and administrative expenses and $0.2
million lower cost of goods sold.
During the third quarter of 2018, we leveraged the significant financing initiatives in Q2, 2018 to support our Four Primary
Growth Area initiatives including: small independent practices, high-risk populations/employers, telemedicine and large
healthcare systems. JTS continues to assist with the new billing process at IDL which has improved
our cash collections on a quarter-over-quarter basis. Revenue from tests was $98 thousand this
quarter compared to $54 thousand in Q3 2017 and the $13 thousand in
Q2, 2018. Invoicing for tests run but not billed during our transition to the new billing process continues to be submitted
to payers and followed up with patients, and we expect collections on these amounts to continue to be collected over the next few
quarters.
The Company's financial statements and management's discussion and analysis are available on www.sedar.com.
About GeneNews
GeneNews, an innovator in the liquid biopsy space, is committed to becoming a leader in advanced diagnostics and personalized
medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. Our mission is
to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with
personalized clinical intelligence and actionable information to improve health out-comes through the early diagnosis of disease.
Our Richmond, Virginia-based Innovative Diagnostic Laboratory clinical reference lab specializes
in traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient
populations. Currently, IDL offers risk assessment blood tests for four prevalent cancer types - colon, lung, prostate and
breast. 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, respectively.
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. The forward-looking statements involve risks and
uncertainties 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.
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SOURCE GeneNews Limited
View original content: http://www.newswire.ca/en/releases/archive/November2018/15/c7260.html