GeneNews Reports Second Quarter 2007 Results
TORONTO, Aug. 14 /PRNewswire-FirstCall/ - GeneNews Limited , a company focused on developing simple blood-based biomarker tests for the early detection of diseases and personalized health management, today reported operational and financial results for the second quarter, ended June 30, 2007.
Financial results (CDN dollars) for the second quarter (Apr. 1, 2007 -
June 30, 2007):
Total revenue for the quarter ended June 30, 2007 was $0.5 million compared to $0.9 million for the same period last fiscal year. Revenues in 2007 resulted from an agreement entered into by the Company with an Asian biomedical consortium to identify and validate a set of biomarkers in the field of prostate diseases, for a total fee of $2 million (USD), while revenues in 2006, resulted from a collaboration agreement with Pfizer completed in the first fiscal quarter of 2007.
Interest earned during the three months ended June 30, 2007 was $358,000, compared with $116,000 during the prior year. The increase was due to increased balances of cash and short-term investments.
Total operating expenditures for the quarter ended June 30, 2007 were $2.7 million compared with $2.9 million for the same period last year. Research and development expenses for the quarter were $1.8 million compared with $2.1 million for the same period last year. General and administrative expenses for the first quarter were $0.7 million compared with $0.5 million for the corresponding quarter in the previous year.
The net loss for the quarter ended June 30, 2007 was $1.8 million or ($0.03) per common share compared with a net loss of $1.9 million or ($0.04) per common share for the same period last year. The net loss is reflective of the Company's continuing focus on research and development and the process leading to commercialization of its first product ColonSentry(TM), a convenient and patient-friendly blood-based test that can detect colon cancer, and the advancement of related products in the Company's pipeline.
Financial results (CDN dollars) for the six month period ended June 30,
2007:
Total revenue for the six-month period ended June 30, 2007 was $2.2 million compared with $1.7 million for the same period last fiscal year. Revenues in 2007 resulted from the prostate disease biomarker development agreement and the final revenue from the Pfizer collaboration agreement, and in 2006, resulted entirely from the Pfizer agreement, which was completed in the first fiscal quarter of 2007.
Interest earned during the six-month period ended June 30, 2007 was $541,000, compared to $153,000 during the prior year, the result of increased balances of cash and short-term investments.
Total operating expenditures for the six-month period ended June 30, 2007 were $6.2 million compared with $6.0 million for the same period last year. Research and development expenses for the quarter were $4.4 million compared with $4.5 million for the same period last year. General and administrative expenses for the six-month period ended June 30, 2007 were $1.3 million compared with $1.0 million for the corresponding period in 2006.
The net loss for the six-month period ended June 30, 2007 was $3.4 million or ($0.06) per common share compared to a net loss of $4.1 million or ($0.10) per common share for the same period last year. The Company's continuing focus is on research and development leading to commercialization of its first product and the development of related products in the Company's pipeline.
As at June 30, 2007 the Company had cash and cash equivalents totalling $16.6 million compared to $20.6 million as at December 31, 2006. Accounts payable and accrued liabilities at June 30, 2007 were $1.9 million compared with $1.8 million at December 31, 2006.
As at June 30, 2007 the Company had 55,450,571 common shares, and 625,000 broker warrants were outstanding.
About GeneNews
--------------
GeneNews is focused on the application of functional genomics to enable early diagnosis and personalized therapeutic intervention based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle(TM), to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle(TM) in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' first product in development, ColonSentry(TM), is a convenient and patient-friendly blood-based test that can detect colon cancer. For more information on GeneNews, visit www.genenews.com.
This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could 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.
GeneNews Limited Consolidated Balance Sheets Amounts in Canadian dollars "Unaudited" ------------------------------------------------------------------------- June 30 December 31 2007 2006 ------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 16,550,330 $ 20,593,568 Accounts receivable 447,021 135,315 Investment tax credits recoverable 796,900 796,900 Prepaid expenses and deposits 444,148 685,819 ----------------------------------------------------------------------- 18,238,399 22,211,602 Capital assets 2,747,658 1,645,488 Intellectual property 621,454 842,528 ------------------------------------------------------------------------- $ 21,607,511 $ 24,699,618 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES and SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 1,942,073 $ 1,821,355 Current portion of long term debt 27,148 102,549 ----------------------------------------------------------------------- 1,969,221 1,923,904 Long term debt - - Shareholders' equity: Capital stock 44,261,204 44,234,409 Contributed surplus 2,532,241 2,255,390 Deficit (27,155,155) (23,714,085) ----------------------------------------------------------------------- 19,638,290 22,775,714 ------------------------------------------------------------------------- $ 21,607,511 $ 24,699,618 ------------------------------------------------------------------------- ------------------------------------------------------------------------- GeneNews Limited Consolidated Statements of Operations and Deficit Amounts in Canadian dollars "Unaudited" ------------------------------------------------------------------------- Three months Three months Six months Six months ended ended ended ended June 30 June 30 June 30 June 30 2007 2006 2007 2006 ------------------------------------------------------------------------- Revenue Milestones $ 539,950 $ - $ 2,206,186 $ - Fees for service - 193,792 - 390,251 One-time payment - 679,228 - 1,350,991 ----------------------------------------------------------------------- 539,950 873,020 2,206,186 1,741,242 Expenses Research and development 1,772,371 2,101,928 4,361,474 4,468,129 General and administrative 651,441 490,070 1,323,517 1,002,752 Stock compensation 131,747 182,975 278,186 296,407 Amortization of intellectual property 110,537 110,537 221,074 221,074 Interest on long term debt 1,538 5,470 4,191 11,940 ----------------------------------------------------------------------- 2,667,634 2,890,980 6,188,442 6,000,302 Interest income 357,865 115,773 541,186 152,770 ------------------------------------------------------------------------- Net loss for the period (1,769,819) (1,902,187) (3,441,070) (4,106,290) Deficit, beginning of period (25,385,336) (16,982,515) (23,714,086) (14,778,412) ------------------------------------------------------------------------- Deficit, end of period $(27,155,155) $(18,884,702) $(27,155,156) $(18,884,702) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per common share Basic and fully diluted $ (0.03) $ (0.04) $ (0.06) $ (0.10) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of common shares outstanding Basic and fully diluted 55,441,019 45,748,373 55,441,019 42,711,255 ------------------------------------------------------------------------- ------------------------------------------------------------------------- GeneNews Limited Consolidated Statements of Cash Flows Amounts in Canadian dollars "Unaudited" ------------------------------------------------------------------------- Three months Three months Six months Six months ended ended ended ended June 30 June 30 June 30 June 30 2007 2006 2007 2006 ------------------------------------------------------------------------- Cash flows provided by (used in): Operations: Net loss for the period $ (1,769,819) $ (1,902,187) $ (3,441,070) $ (4,106,290) Items therein not requiring cash Stock based compensation 131,747 182,975 278,186 296,407 Amortization of capital assets 89,917 99,054 174,862 191,528 Amortization of intellectual property 110,537 110,537 221,074 221,074 --------------------------------------------------------------------- (1,437,618) (1,509,621) (2,766,948) (3,397,281) Changes in non-cash working capital: Accounts receivable (245,835) 122,410 (311,706) 1,299,836 Investment tax credit recoverable - - - 658,022 Prepaid expenses and deposits 166,687 (51,328) 241,671 (29,170) Accounts payable and accrued liabilities 122,972 (314,774) 120,718 231,712 Deferred revenue - (679,532) - (1,351,531) --------------------------------------------------------------------- (1,393,794) (2,432,845) (2,716,265) (2,588,412) Financing: Net proceeds from issue of capital stock - 23,940,120 25,459 24,025,139 Payments on long term debt (38,258) (34,326) (75,401) (67,652) ----------------------------------------------------------------------- (38,258) 23,905,794 (49,942) 23,957,487 Investments: Additions to capital assets (1,168,630) (100,154) (1,277,031) (235,898) ----------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents (2,600,682) 21,372,795 (4,043,238) 21,133,177 Cash and cash equivalents, beginning of period 19,151,012 4,441,264 20,593,568 4,680,882 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 16,550,330 $ 25,814,059 $ 16,550,330 $ 25,814,059 ------------------------------------------------------------------------- -------------------------------------------------------------------------
GeneNews LimitedCONTACT: Dr. K. Wayne Marshall, President & CEO, (416) 650-0060 x 234,wmarshall@genenews.com; James Smith, (416) 815-0070 x 229,jsmith@equicomgroup.com