Feb 18 2011
DiaGenic ASA (OSE:DIAG)
Executing the new business strategy - First Pharma deal signed
The interim report for the fourth quarter 2010 was approved by the Board of Directors on 17 February 2011.
Highlights from the report:
· R&D Collaboration agreement with Pfizer on developing MCI and AD progression biomarkers signed
· Partner interactions with several leading pharmaceutical and imaging companies within the CNS area are progressing according to plan.
· Successful share issue of NOK 70 + 30 million
DiaGenic has significantly altered its business strategy during 2010 to leverage more effectively its commercial potential, and strengths in Intellectual Property (IP). The Company has made significant progress in its business activities towards big pharma since implementation of the new strategy. DiaGenic is well positioned as a multimodal partner with large pharma and imaging companies.
The first confirmation that DiaGenic attracts interest from pharmaceutical companies as a provider of biomarkers for Alzheimer's disease was demonstrated in December when DiaGenic and Pfizer signed a collaborative research and development agreement. By initially using DiaGenic's own clinical studies, biobank and 1200 preselected informative genes from our whole genome studies, several new diagnostic tests are to be developed. The objective is to identify gene expression patterns in blood from patients who will progress from the Mild Cognitive Impairment (MCI) stage to Alzheimer's disease (i.e. a prodromal AD test) and patterns associated with different stages of Alzheimer's disease. The agreement is the first of a potential modular collaboration that aims to develop and validate new blood based diagnostic tools to support Pfizer's needs in AD drug development. The agreement gives Pfizer the right to use DiaGenic's gene expression technology in internal R&D studies.
In the fourth quarter DiaGenic carried out a successful private placement of NOK 70 million and a subsequent repair issue, to shareholders not participating in the private placement of NOK 30 million. Consequently long term financing of the Company was secured. Nominal value per share is NOK 0.05 and the subscription price in both share issues was NOK 0.50 per share.
Operating revenue were NOK 1,078 thousand in fourth quarter 2010 compared with NOK 125 thousand in fourth quarter 2009. Comprehensive income totalled NOK -9.9 million for the fourth quarter in 2010 compared with NOK -11.2 million in the corresponding period in 2009. Total operating costs for the fourth quarter in 2010 amounted to NOK 11.6 million compared with NOK 11.4 million in the fourth quarter in 2009. The company's cash and cash equivalents totalled NOK 98.8 million at 31 December 2010.
Future prospects
· Continue executing on the new companion diagnostics strategy of biomarkers with R&D and licensing agreements within the CNS field with the pharmaceutical and imaging industries aiming for additional partnerships in 2011
· Successfully deliver on the Pfizer collaboration in 2011
· Strengthening and aligning the organization to the new pharma strategy
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