TORONTO, April 3, 2017 /CNW/ - GeneNews Limited (TSX:GEN)
("GeneNews" or the "Company") today announced operational and
financial results for the three-month and full year periods ended
December 31, 2016.
"2016 was a pivotal year for GeneNews. Through the buyout of IDL
in May 2015 and March 2016, we were able to establish full
control of the laboratory, allowing for the refinancing of GeneNews
and the new focus on positioning our early cancer diagnostic tests
in the risk stratification of patients so that those at highest
risk are prioritized for advanced diagnosis and treatment,"
commented James R Howard-Tripp, GeneNews' Chairman and CEO. "Our
collaboration with JTS Health Partners, announced end of
March 2016, has focused our
commercialization path on providing diagnostic services to
hospitals, clinically integrated networks, large physician groups
and other, large healthcare providers. Our subsequent partnerships
with NueHealth, announced in September
2016, and the Midwest multi-specialty physician group,
announced in March 2017, are evidence
that our business strategy is sound and that our leading edge,
blood-based molecular diagnostics for the early detection of cancer
have a key place in increasing the number of patients who will
participate in screening. GeneNews, with our partner
JTS, is in active discussions with
multiple, large healthcare providers regarding use of our early
cancer diagnostic tests, and we expect to continue to add to the
list of active users."
Mr. Howard-Tripp added, "This first quarter of 2017 has seen a
full resumption of test activity within the lab, the reinvigoration
of existing clients, the enrollment of new practices and
physicians, increasing test volume, and the launch of a major new
diagnostic, BreastSentry®, for the early detection of breast
cancer."
Effective July 1, 2015, GeneNews
changed its functional and presentation currency to U.S. dollars
given the increasing prevalence of U.S. dollar denominated
activities of the Company over time. These fourth quarter and full
year 2016 financial results are presented in U.S. dollars and prior
period comparable information is restated to reflect the change in
presentation currency. Results are reported in accordance with
International Financial Reporting Standards.
For the quarter ended December 31,
2016, GeneNews reported a consolidated net income of
$1.0 million, or $0.02 net income per common share, as compared
with a consolidated net loss of $1.5
million, or $0.02 net loss per
common share, for the same period in 2016. Total revenue for the
three-months ended December 31, 2016,
was approximately $0.3 million,
compared to nil in the same period in 2016. At December 31, 2016, management analyzed the
goodwill associated with its March 15,
2016 purchase of the controlling interest in IDL for
impairment by surveying market based merger and acquisition
transactions for companies which are of a comparable size and stage
of commercialization as IDL. Based on this analysis, the goodwill
at December 31, 2016 was estimated at
$1.1 million and the impairment
estimate made in a prior quarter was reversed.
For the year ended December 31,
2016, GeneNews reported a consolidated net loss of
$5.9 million, or $0.09 loss per common share, as compared with a
consolidated net loss of $6.0
million, or $0.11 loss per
common share, for the same period in 2015. Total revenue for the
year ended December 31, 2016, was
approximately $1.1 million, compared
to $0.3 million in the same period in
2015, an increase that was reflected in the consolidation of cash
collection by IDL since March 15,
2016. The $0.1 million
decrease in net loss primarily results from a $2.7 million decline in share of loss in IDL,
$0.7 million increase in revenue,
$0.4 million decline in sales and
marketing expenses and $0.3 million
decline in asset impairment; offset by a $1.5 million increase in cost of goods sold,
$1.1 million increase in general and
administrative costs, $0.7 million
increase in loss upon revaluation of warrants, $0.6 million increase in finance costs and
$0.1 million increase in change in
fair value of conversion liabilities. The overall mix of expenses
incurred in 2016 has changed from that in 2015, given the Company's
March 2016 acquisition of the
remaining 50% interest in IDL.
The Company had approximately $0.2
million in cash and cash equivalents as at December 31, 2016.
The Company's annual financial statements, management's
discussion and analysis, annual information form and the related
officer certifications for the financial year ended December 31, 2016 were filed on www.sedar.com on
March 30, 2017.
About GeneNews
GeneNews, an innovator in the liquid biopsy space, is committed
to becoming a leader in advanced diagnostics and personalized
medicine, serving as a strong commercialization outlet for early
detection of cancer and other chronic diseases. Our mission is to
identify, assess and make commercially available a comprehensive
menu of diagnostics that provide physicians and patients with
personalized clinical intelligence and actionable information to
improve health out-comes through the early diagnosis of
disease. Our Richmond,
Virginia-based Innovative Diagnostic Laboratory clinical
reference lab specializes in traditional and advanced clinical
evidence-based blood testing that helps find, understand, and
address cancer risk in patient populations. Currently, IDL offers
risk assessment blood tests for four prevalent cancer types -
colon, lung, prostate and breast. GeneNews' common shares trade on
the Toronto Stock Exchange under the symbol 'GEN'. More
information on GeneNews and IDL can be found at www.GeneNews.com
and www.myinnovativelab.com, respectively.
Forward-Looking Statements
This press release contains forward-looking statements
identified by words such as "expects", "will" and similar
expressions, which reflect the Company's current expectations
regarding future events. The forward-looking statements involve
risks and uncertainties that could cause the Company's actual
events to 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, except as required by law.
SOURCE GeneNews Limited