QUEBEC CITY, June 6, 2011 /PRNewswire/ - DiagnoCure, Inc. (TSX: CUR), a life sciences company commercializing highvalue cancer diagnostic tests and delivering laboratory services, today reported financial and operation results for the second quarter of fiscal 2011. The Company announced a net loss of $1,601,439 or $0.04 per share for the quarter ended April 30, 2011. These results reflect activities undertaken during this quarter and the Company’s on-going commitment to develop high-value diagnostic tests for the detection and management of cancer. At the end of the quarter, cash, short-term investments and long-term investments stood at $4,706,383.
Highlights of the Second Quarter 2011
In May 2011, the Company announced that the results of a recent study on the Previstage GCC Colorectal Cancer Staging Test, presented earlier at ASCO GI 2011, have been published in the peer-reviewed journal Annals of Surgical Oncology (May 2011), with Dr. Daniel J. Sargent, Professor of Biostatistics and Oncology at Mayo Clinic as lead author and Principal Investigator of the study. The study was conducted on lymph nodes of 241 untreated stage II colon cancer patients. In order to establish a risk of recurrence (prognosis) for these patients, the study focused on the positive lymph node (LN) ratio, defined as the number of nodes in which cancer cells were identified with the PrevistageTM GCC test, divided by the total number of nodes examined. This LN ratio approach was able to significantly predict higher recurrence risk for 84 patients (35%). In fact, the estimated recurrence rates at five years after surgery were 27% for patients with a LN ratio equal to or higher than 1/10 (highrisk group), and 10% for patients with a LN ratio under 1/10 (lowrisk group).
Results for the Second Quarter 2011
Total revenues for the second quarter of 2011 were $352,068 compared with $344,093 for the second quarter of 2010. In the second quarter of 2011, royalty revenues amounted to $187,106 compared with $154,967 for the corresponding period of 2010. Royalty revenues from Gen-Probe increased by $8,873, from $154,967 for the second quarter of 2010 to $163,840 for the second quarter of 2011. Without the effect of the exchange rate variation, royalty revenues from Gen-Probe have increased by 13% to US$172,718 for the second quarter of 2011 from US$153,190 for the same quarter of 2010. This increase is attributable to the sales of PROGENSA® PCA3 in Europe and the United States by Gen-Probe. Also in the second quarter of 2011, DiagnoCure recorded royalties of $23,266 from Scimedx, related to ImmunoCytTM / uCyt+TM, compared with no royalties for the same period of 2010.
Interest income decreased by $24,768, to $16,424 for the second quarter of 2011 compared with $41,192 for the second quarter of 2010. The decrease is attributable to DiagnoCure’s use of fund to finance its operating activities.
Operating expenses decreased by $570,297, to $1,966,552 for the second quarter of 2011 from $2,536,849 for the second quarter of 2010. This decrease is attributable to reduced R&D and selling and business development expenses.
Based on the above, for the second quarter of 2011, DiagnoCure recorded a net loss of $1,601,439 or $0.04 per share, compared with $2,204,832 or $0.05 per share, for the same period of 2010.
Financial Data
| For the second quarter ended April 30 | ||
| 2011 | 2010 | |
| $ | $ | |
| Sales | 24,737 | 16,846 |
| Revenue under research and license agreement | 310,907 | 286,055 |
| Interest | 16,424 | 41,192 |
| Total revenues | 352,068 | 344,093 |
| Cost of sales | (14,839) | (12,076) |
| Gross margin | 337,229 | 332,017 |
| Operating expenses (before stock-based compensation) | 1,886,587 | 2,420,316 |
| Net loss (before stock-based compensation) | (1,549,358) | (2,088,299) |
| Stock-based compensation | 79,965 | 116,533 |
| Net loss before income taxes | (1,629,323) | (2,204,832) |
| Future income taxes | 27,884 | |
| Net loss | (1,601,439) | (2,204,832) |
| Basic and diluted loss per share | (0.04) | (0.05) |
| Weighted average number of common shares outstanding | 42,984,716 | 42,965,148 |
Consolidated Balance Sheets
| As of April 30 | ||
| 2011 | 2010 | |
| Cash, cash equivalents, temporary and long-term investments | 4,706,383 | 9,682,540 |
| Total assets | 14,094,862 | 20,295,730 |
| Shareholders’ equity | 11,877,724 | 17,426,433 |
About DiagnoCure
DiagnoCure (TSX: CUR) is a life sciences company commercializing high-value cancer diagnostic tests and delivering laboratory services that increase clinician and patient confidence in making critical treatment decisions. DiagnoCure Oncology Laboratories, a subsidiary of DiagnoCure, Inc., launched in 2008 the PrevistageTM GCC Colorectal Cancer Staging Test, the first GCC-based molecular test for the management of colorectal cancer. To date, two major studies (JAMA 2009 and Ann. Surg. Onc. 2011) have demonstrated that the GCC biomarker, to which DiagnoCure owns exclusive worldwide diagnostic rights, of all the risk factors compared in the studies is the strongest independent predictor of colorectal cancer recurrence. The Company has a strategic alliance with Gen-Probe (NASDAQ: GPRO) for the development and commercialization of a second-generation prostate cancer test using PCA3, DiagnoCure’s proprietary molecular marker. This test is available through laboratories in the U.S. and in Canada using PCA3 analyte specific reagents (ASR) from Gen-Probe, and in Europe as the CE-marked PROGENSA® PCA3 in vitro assay. Gen-Probe completed a 500-patient clinical study aimed at securing FDA approval for the commercialization of the PROGENSA® PCA3 test in the U.S. and filed a PMA in September 2010. For more information, visit www.diagnocure.com.
Forwardlooking statements
This release contains forwardlooking statements that involve known and unknown risks, uncertainties and assumptions that may cause actual results to differ materially from those expected. By their very nature, forwardlooking statements are based on expectations and hypotheses and also involve risks and uncertainties, known and unknown, many of which are beyond DiagnoCure’s control. As a result, investors are cautioned not to place undue reliance on these forwardlooking statements. The forward-looking statements regarding the outcome of research and development projects, clinical studies and future revenues are based on management expectations. 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 forwardlooking statements contained herein unless required by the applicable securities laws and regulations.
SOURCE DIAGNOCURE INC.
