DiagnoCure first quarter total revenue is $362,101 for 2011

Mar 11 2011

DiagnoCure, Inc. (TSX: CUR), a life sciences company commercializing high‐value cancer diagnostic tests and delivering laboratory services, today reported financial and operation results for the first quarter of fiscal 2011. The Company announced a net loss of $1,608,543 or $0.04 per share for the quarter ended January 31, 2011. These results reflect activities undertaken during this quarter and the Company's on-going commitment to develop high-value diagnostic tests for the detection and management of cancer. At the end of the quarter, cash, short-term investments and long-term investments stood at $6,291,784.

Highlights of the First Quarter 2011

In January 2011, the results of the first phase of a new clinical study on DiagnoCure's Previstage^TM GCC Colorectal Cancer Staging Test, called VITAR (Validating Indicators To Associate Recurrence Risk), were presented at the American Society of Clinical Oncology Gastrointestinal Cancers Symposium by the study Principal Investigator, Daniel Sargent, PhD, Professor of Biostatistics and Oncology at Mayo Clinic. The study included 241 stage II colon cancer patients from six North American clinical sites and aimed at further classifying the risk of recurrence of these patients. Stage II colon cancer patients are considered as low risk by traditional methods yet with an average recurrence rate of 20%. In this population, the study demonstrated that Previstage^TM GCC can stratify patients into high and low risk of recurrence groups, thereby providing relevant and more accurate clinical information for physicians to make more personalized treatment decisions.

Results for the First Quarter 2011

Total revenues for the first quarter of 2011 were $362,101 compared with $362,401 for the first quarter of 2010. In the first quarter of 2011, royalty revenues amounted to $161,790 compared with $161,421 for the corresponding period of 2010. Royalty revenues from Gen-Probe increased by $8,524, from $152,555 to $161,079 for the first quarter of 2011. Without the effect of the exchange rate variation, royalty revenues from Gen-Probe have increased by 25% to US$160,725 for the first quarter of 2011 from US$128,345 for the same quarter of 2010. This increase is attributable to the sales of PROGENSA^® PCA3 in Europe and the United States by Gen-Probe.

Interest income decreased by $28,422, to $22,519 for the first quarter of 2011 compared with $50,941 for the first quarter of 2010. The decrease is attributable to DiagnoCure's use of fund to finance its operating activities and the lower interest rates on its investments.

Operating expenses decreased by $2,209,724, to $1,971,232 for the first quarter of 2011 from $4,180,956 for the first quarter of 2010. This decrease reflects the impact of the enterprise structure optimization announced in February 2010.

Based on the above, for the first quarter of 2011, DiagnoCure recorded a net loss of $1,608,543 or $0.04 per share, compared with $3,820,089 or $0.09 per share, for the same period of 2010.