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.