QUEBEC CITY, Sept. 8, 2011 /PRNewswire/ - DiagnoCure, Inc. (TSX: CUR), a life sciences company that develops and commercializes highvalue cancer diagnostic tests, today reported financial and operation results for the third quarter of fiscal 2011. The Company announced a net loss from continuing operations of $912,459 or $0.02 per share, net earnings from discontinued operations of $3,952,095 or $0.09 per share and consolidated net earnings of $3,039,636 for the quarter ended July 31, 2011. At the end of the quarter, cash, short-term investments and long-term investments stood at $8,834,927, including cash and cash equivalent from discontinued operations.
“These financial results largely reflect the transaction with Signal Genetics, which provided a new inflow of cash to DiagnoCure. Added to the royalty revenues from Gen-Probe on the PCA3 genomic biomarker for prostate cancer, DiagnoCure now has gained a financial base to leverage its core expertise in developing novel genomic cancer tests, and take advantage of the fast expanding field of Personalized Medicine,” stated Dr. Yves Fradet, President and Chief Medical Officer of the Company.
Highlights of the Third Quarter 2011
On June 15, DiagnoCure reported the issuance of a new U.S. patent, which represents a significant addition to the Company’s PCA3 prostate cancer biomarker portfolio. In addition to providing greater patent protection, this new patent bears an extended expiration date that lengthens by 20 months the term of the license that DiagnoCure granted to its commercial partner, Gen-Probe. As a result, the duration of the Gen-Probe license will be extended to August 2027.
On June 29, the Company announced a collaboration arrangement with Signal Genetics valued at a minimum of US$13.3M over the first five years. This collaboration aims to maximize the commercialization of the PrevistageTM GCC Colorectal Cancer Staging Test, and further develop novel genomic cancer tests in the field of Personalized Medicine.
On August 17, DiagnoCure announced that Health Canada had granted regulatory approval to Gen-Probe, the Company’s commercial partner for the PCA3 biomarker, for the PROGENSA® PCA3 assay.
Results for the Third Quarter 2011 from Continuing Operations
Total revenues for the third quarter of 2011 were $304,288 compared with $347,130 for the same period of 2010. In the third quarter of 2011, royalty revenues amounted to $168,273 compared with $174,476 for the corresponding period of 2010. Royalty revenues from Gen-Probe decreased by $7,635, to $155,025 for the third quarter of 2011 from $162,660 for the same period of 2010. Without taking into account the effect of the exchange rate variation, royalty revenues from Gen-Probe have increased by 3%, to US$162,534 for the third quarter of 2011 from US$158,076 for the same period of 2010. This increase is attributable to increased sales of PROGENSA® PCA3 in Europe and the United States by Gen-Probe. Also in the third quarter of 2011, DiagnoCure recorded royalties of $13,248 from Scimedx, related to ImmunoCytTM / uCyt+TM, compared with $11,816 for the same period of 2010.
Interest income decreased by $26,195, to $12,215 for the third quarter of 2011 from $38,410 for the same period of 2010. The decrease is attributable to DiagnoCure’s use of funds to finance its operating activities.
Operating expenses increased by $78,955, to $1,244,631 for the third quarter of 2011 from $1,165,676 for the same period of 2010. This increase is attributable to administrative professional fees related to the IFRS transition and to consulting fees.
Based on the above, for the third quarter of 2011, DiagnoCure recorded a net loss from continuing operations of $912,459 or $0.02 per share, compared with $818,546 or $0.02 per share, for the same period of 2010.
