TORONTO, Jan. 5, 2018 /CNW/ - GeneNews Limited (TSX:GEN)
("GeneNews" or the "Company") released a Letter to Shareholders
updating current activities and outlining its corporate strategy
for 2018, as follows:
Dear Shareholders,
Our objective to help reduce the incidence of late stage cancers
through early detection continues to be strengthened. This premise
is what the Company is being built on.
To that end, in 2017, we started writing a new chapter in the
story of GeneNews:
- We resumed full testing at Innovative Diagnostic Laboratory,
our CLIA and CAP certified laboratory.
- The Company has continued to enroll new practices, bringing
Small Clinical Practice enrollment above the 2000 mark.
- We launched the MyCancerRisk™ Program to help
physicians educate patients about their cancer risk and began a
pilot program with High Risk Patient Populations. A major
component of this program is to collect key data and track outcomes
from early interventions which will prove invaluable to their
health plan design, coverage decisions and cancer prevention
programs. Rollout of this program began in Q4 of 2017.
- Large Healthcare Systems - We continued our work with
JTS Health Partners to build strategic partnerships in value-based
care, hospitals and large healthcare systems. We have multiple
large healthcare systems with whom we are working on implementing
the use of our early cancer diagnostic tests. We expect to launch
programs with these systems in the first quarter of 2018.
One such opportunity is a top ten healthcare system with multiple
hospitals, primary care clinics, and an outreach program that
encompasses thousands of physicians across 5 states.
- Direct to Consumer Initiative - One of the most exciting
developments of the year is the ramp-up of our operations and
infrastructure for the execution of a Telemedicine model.
This plan will allow us to connect the thousands of patients who
reach out to us each year, with national networks of
Telemedicine Physicians and 8,000 draw-sites to dramatically
improve patient access to our tests. As part of the plan's
execution, we are building an IT infrastructure that will allow us
to report results electronically to physician networks and process
patient payments online to generate immediate revenue.
The Next Frontier - 2018 - Data as an Asset
At the heart of the company's mission to improve health
outcomes, is our ability to provide physicians and their patients
with actionable clinical data for cancer risk assessment. In 2017,
GeneNews began the process of collecting and sharing aggregated
data in an effort to build a data-driven product to help practices
and healthcare systems better understand their patient populations
and build more effective programs to improve patient compliance
with cancer screening, preventive health programs, and early
interventions. During 2018 we expect to expand this effort as we
initiate research programs with key Cancer Research Centers. Data
as an asset will continue to be key strategy for us as we enter
2018.
Financing Activities
Whilst balancing turnaround of the company with financing
activities, truly aggressive growth of the company has been
hampered by needing to carefully manage finances. This has started
to resolve.
In late 2017, GeneNews announced the signing of the Milost
Global Subscription Agreement (the MESA), securing US$10 million in equity and debt financing. The
Initial US $500,000 Equity Draw Down
has commenced and is anticipated to close this month.
Funding is currently coming from revenue from sales, convertible
notes done with existing shareholders and Directors, and from GEM,
as needed.
Additionally, the company is starting to attract attention from
a diverse group of interested parties and will build this out more
formally during 2018.
Priorities for 1H/2018
- Aggressively expand the programs under MyCancerRisk to
the High Risk Patient Populations and their employers. Pilot
program data showed 34% of those tested had a raised risk result
for cancer. Full program testing is scheduled to begin Q1.
- Implement the direct-to-consumer program with the 8,000+ draw
sites and Telemedicine Physician Networks. Full rollout in
Q1.
- Initiate test utilization with Large Healthcare Systems.
Planning for test implementation is running in parallel with
contract completion. Objective is to have test introduction
logistics completed with signature of agreements. Planned for
Q1.
- Continue to expand Small Clinical Practice base and
upgrade Billing and revenue collection system.
We now have four distinct revenue streams:
- High Risk Patients - cash price collected
immediately
- Telemedicine - cash price invoiced to Networks with
payment within 45 days
- Large Healthcare Systems - fixed price per test invoiced
and paid within 45 days
- Small Clinical Practices - standard billing to
insurers/CMS. Process being significantly upgraded.
We believe we have the right strategy, have the right deals
being put into place, the right products to make a difference, and
can now begin to realize the company's full potential.
As a management group, we thank you for your continued support,
and look forward to building a successful company together.
Kind regards,
James R Howard-Tripp
Chairman and CEO
SOURCE GeneNews Limited