Nov 11 2009
GeneNews Limited (TSX: GEN), 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 third quarter-ended September 30, 2009.
"We recently accomplished two major milestones. We were issued a US patent for our proprietary Sentinel Principle(R) platform technology and positive validation data was published for a novel blood-based, seven-gene biomarker set that forms the basis of our lead product ColonSentry(TM), the world's first blood test for colorectal cancer," said Dr. Heiner Dreismann, Lead Director and Interim CEO of GeneNews. "Our proprietary Sentinel Principle(R) platform technology is used to identify clinically actionable biomarkers that reflect complex changes in blood gene expression patterns and this patent could entrench this technology in the rapidly-growing molecular diagnostics industry. We look forward to further leveraging the potential of our platform as we continue our ongoing discussions with potential marketing partners in the United States and selected countries in Europe and Asia to expand access to ColonSentry(TM) outside of Canada."
Recent highlights: - Entered into an agreement allowing Eli Lilly and Company (NYSE: LLY) select access to research from its osteoarthritis genomic biomarker program. - Granted a U.S. patent for its core platform technology, the Sentinel Principle(R), a powerful method for identifying clinically actionable biomarkers relating to disease and health from a basic blood sample. - Publication of positive validation data in the International Journal of Cancer for a novel blood-based, seven-gene biomarker panel for colorectal cancer that can stratify average risk patients according to their current relative risk of actually having colorectal cancer, the basis of the Company's lead product ColonSentry(TM). - Publication of a paper in the Journal of Clinical Gastroenterology reporting data using GeneNews' proprietary Sentinel Principle(R) platform technology to identify complex changes in blood gene expression patterns that were differentially regulated between active and inactive Crohn's disease. - Completed non-brokered, private placement for total gross proceeds in the amount of $2,000,000. GeneNews has sufficient funds to continue its operations into the first quarter of 2010. Efforts to secure access to additional capital resources are continuing; however there is no assurance that these initiatives will be successful. Financial results (CDN dollars) for the third quarter-ended September 30, 2009:
For the three-month period ended September 30, 2009, the Company recorded revenue of $0.4 million compared with $0.3 million for the three-month period ended September 30, 2008. Revenues in the three-month period for 2009 were attributable to a collaborative research agreement, recovery of receivables from an Asian biomedical consortium, and ColonSentry sales. For the same period 2008, revenues were from the Asian biomedical consortium. For the nine-month period ended September 30, 2009, the Company recorded revenue of $0.7 million compared with $0.9 million for the nine-month period ended September 30, 2008.
For the three-month period ended September 30, 2009, total operating expenditures were $1.8 million compared to $4.3 million for the same period last year. For the nine-month period ended September 30, 2009, total operating expenditures were $5.9 million compared to $11.6 million for the same period last year. Research and development expenses for the quarter were $0.7 million compared to $2.6 million for the same period last year. Research and development expenses for the nine-month period ended September 30, 2009 were $2.4 million compared to $7.9 million for the same period last year. Sales and marketing expenses for the quarter were $0.1 million compared to 0.3 for the same quarter last year. Sales and marketing expenses for the nine-month period ended September 30, 2009, were $0.4 million compared to 0.3 for the same period last year. General and administrative expenses for the quarter were $0.5 million compared to $0.7 million for the corresponding quarter in 2008. General and administrative expenses for the nine-month period ended September 30, 2009, were $1.7 million compared with $2.0 million in the corresponding period last year.
Net loss for the three-month period ended September 30, 2009, totalled $1.4 million or ($0.02) per common share compared to a net loss of $3.9 million or ($0.07) per common share for the three-month period ended September 30, 2008. Net loss for the nine-month period ended September 30, 2009, was $5.1 million or ($0.09) per common share compared to a net loss of $10.5 million or ($0.19) per common share the corresponding period last year.
As at September 30, 2009, the Company's unrestricted cash and cash equivalents amounted to $1.3 million compared to $1.4 million as at December 31, 2008, and the Company had 63,883,437 common shares and 9,131,014 stock options outstanding.
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