TORONTO, March 26 /PRNewswire-FirstCall/ - GeneNews Limited , a company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today reported operational and financial results for the fourth quarter and year ended December 31, 2007.
“This was a transformative year for GeneNews because of the advancements made for the laboratory-developed test (LDT) version of ColonSentry(TM) and the strengthening of our internal processes and systems,” said Dr. K. Wayne Marshall, MD, PhD, President and CEO of GeneNews. “We are now positioned for the initial commercial launch of ColonSentry in the third quarter of 2008 through our in-house clinical reference lab located in the Toronto-area.”
Total revenue for the quarter ended December 31, 2007 was $0.3 million compared to $0.7 million for the same period last year. Revenue 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 December 31, 2007 was $123,780, compared with $51,225 for the corresponding quarter in the prior year.
Total operating expenditures for the quarter ended December 31, 2007 were $3.1 million compared with $3.4 million for the same period last year. Research and development expenses for the quarter were $2.1 million compared with $2.7 million for the same period last year. General and administrative expenses for the fourth quarter were $0.7 million compared with $0.4 million for the corresponding quarter in the previous year.
The net loss for the quarter ended December 31, 2007 was $2.6 million or ($0.05) per common share compared with a net loss of $2.7 million or ($0.05) 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 assess a patient’s current risk for colon cancer, and the advancement of related products in the Company’s pipeline.
Financial results (CDN dollars) for the year-ended December 31, 2007:
Total revenue for the year-ended December 31, 2007 was $2.2 million compared with $3.3 million for the same period last year. Of the revenues in 2007, $0.2 resulted from the prostate disease biomarker development agreement and $1.7 representing the final revenue from a collaboration agreement with Pfizer. In 2006, revenues resulted entirely from the Pfizer agreement.
Interest earned during the year-end ended December 31, 2007 was $822,000, compared to $448,000 for the corresponding period during the prior year.
Total operating expenditures for the year-ended December 31, 2007 were $12.6 million compared with $12.7 million for the same period last year. Research and development expenses for the quarter were $8.9 million compared with $9.5 million for the same period last year. General and administrative expenses for the year-ended December 31, 2007 were $2.7 million compared with $1.9 million for the corresponding period in 2006.
The net loss for the year-ended December 31, 2007 was $9.6 million or ($0.17) per common share compared to a net loss of $8.9 million or ($0.18) 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 December 31, 2007, the Company’s cash and cash equivalents amounted to $11,279,030.
As at December 31, 2007 the Company had 55,518,769 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.
CONTACT: Dr. K. Wayne Marshall, President & CEO, (416) 650-0060 x 234,
wmarshall@genenews.com; James Smith, (416) 815-0070 x 229,
jsmith@equicomgroup.com
