Q3 Revenue up 81% year over year
- Leveraged the financings from the Unit Private Placement and
the Lind Convertible Security to significantly accelerate
promotional activities
- Expanded outreach to enrolled and active practices to
accelerate growth. New practices awaiting full on-boarding
increasing steadily.
- Conducted early cancer testing for colorectal, lung, prostate
and breast cancers in two High Risk Employee groups; preparing for
testing of further groups now.
- Approximately 1600 tests processed during the quarter.
- Direct to Consumer testing continues to be built-out, with new
initiatives tied to launch of new website and soon a dedicated
consumer site.
- Implementation continues within several large healthcare
systems with support of LifeX.
- Rebranding of company into single entity behind proven Sentinel
Principle technology and advancement of Aristotle: early detection
of ten cancers from a single blood sample - a $2 billion opportunity.
- Subsequent to the Quarter: Test volume in October up 30% over
previous months.
TORONTO, Nov. 15, 2018 /PRNewswire/ - GeneNews Limited
(TSX:GEN) ("GeneNews" or the "Company") today announced operational
and financial results for the three-month and nine-month periods
ended September 30, 2018 and provided
a progress update on its business.
"Billing revenue is up markedly (+81%) from a year ago when we
began the process of switching billing companies, and very
significantly from last quarter (654%) as the new process gains
traction," commented James R Howard-Tripp, GeneNews' Chairman and
CEO. "Q3 tests started aggressively, with test volume up 40% during
July, but the full quarter was impacted by the hurricanes that
affected the South and South East of the U.S., our larger customer
states. Test volume in October is again showing growth, with
testing of High-Risk employees contributing."
Howard-Tripp further commented, "GeneNews and LifeX this morning
announced a partnership which has two specific near-term
objectives: the first is to expand the adoption and use of
GeneNews' 'liquid biopsy', for the early diagnosis of cancer into
large, multi-entity healthcare systems; the second objective is to
fully develop and market GeneNews' Aristotle platform,
specifically, the first-in-class early detection of ten cancers
from a single sample of blood. It is GeneNews' and LifeX's intent
to have a transformational effect on early cancer screening and
diagnosis."
Q3 2018 Financial Results
All amounts are expressed in U.S. dollars unless otherwise
stated and results are reported in accordance with International
Financial Reporting Standards.
For the three-month period ended September 30, 2018, we reported a consolidated
net loss of $0.7 million, or
$0.01 loss per common share, as
compared with a consolidated net loss of $0.6 million, or $0.01 loss per common share, for the three-month
period ended September 30,
2017. The $0.07 million
increased loss results from the $0.07
million impact of the revaluation of warrants, $0.02 change in fair value of conversion
liability, the $0.01 increase in
finance costs, the $0.1 million
increase in cost of goods sold, offset by the $0.04 million increase in revenue and
$0.1 million reduction in general and
administrative costs.
For the nine-month period ended September
30, 2018, we reported a consolidated net loss of
$3.9 million, or $0.03 loss per common share, as compared with a
consolidated net loss of $2.6
million, or $0.04 loss per
common share, for the nine-month period ended September 30, 2017. The $1.3 million increased loss results from the
$0.7 million impact of the
revaluation of warrants, $0.6 million
change in fair value of conversion liability, the $0.6 million increase in finance costs and the
$0.2 million decline in test revenue,
offset by $0.6 million lower general
and administrative expenses and $0.2
million lower cost of goods sold.
During the third quarter of 2018, we leveraged the significant
financing initiatives in Q2, 2018 to support our Four Primary
Growth Area initiatives including: small independent practices,
high-risk populations/employers, telemedicine and large healthcare
systems. JTS continues to assist with
the new billing process at IDL which has improved our cash
collections on a quarter-over-quarter basis. Revenue from tests was
$98 thousand this quarter compared to
$54 thousand in Q3 2017 and the
$13 thousand in Q2, 2018.
Invoicing for tests run but not billed during our transition to the
new billing process continues to be submitted to payers and
followed up with patients, and we expect collections on these
amounts to continue to be collected over the next few quarters.
The Company's financial statements and management's discussion
and analysis are available on www.sedar.com.
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.
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SOURCE GeneNews Limited