DiagnoCure reports net loss of $1,601,439 for second quarter 2011

Jun 7 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 second quarter of fiscal 2011. The Company announced a net loss of $1,601,439 or $0.04 per share for the quarter ended April 30, 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 $4,706,383.

Highlights of the Second Quarter 2011

In May 2011, the Company announced that the results of a recent study on the Previstage GCC Colorectal Cancer Staging Test, presented earlier at ASCO GI 2011, have been published in the peer-reviewed journal Annals of Surgical Oncology (May 2011), with Dr. Daniel J. Sargent, Professor of Biostatistics and Oncology at Mayo Clinic as lead author and Principal Investigator of the study. The study was conducted on lymph nodes of 241 untreated stage II colon cancer patients. In order to establish a risk of recurrence (prognosis) for these patients, the study focused on the positive lymph node (LN) ratio, defined as the number of nodes in which cancer cells were identified with the Previstage^TM GCC test, divided by the total number of nodes examined. This LN ratio approach was able to significantly predict higher recurrence risk for 84 patients (35%). In fact, the estimated recurrence rates at five years after surgery were 27% for patients with a LN ratio equal to or higher than 1/10 (high‐risk group), and 10% for patients with a LN ratio under 1/10 (low‐risk group).

Results for the Second Quarter 2011

Total revenues for the second quarter of 2011 were $352,068 compared with $344,093 for the second quarter of 2010. In the second quarter of 2011, royalty revenues amounted to $187,106 compared with $154,967 for the corresponding period of 2010. Royalty revenues from Gen-Probe increased by $8,873, from $154,967 for the second quarter of 2010 to $163,840 for the second quarter of 2011. Without the effect of the exchange rate variation, royalty revenues from Gen-Probe have increased by 13% to US$172,718 for the second quarter of 2011 from US$153,190 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. Also in the second quarter of 2011, DiagnoCure recorded royalties of $23,266 from Scimedx, related to ImmunoCyt^TM / uCyt+^TM, compared with no royalties for the same period of 2010.

Interest income decreased by $24,768, to $16,424 for the second quarter of 2011 compared with $41,192 for the second quarter of 2010. The decrease is attributable to DiagnoCure's use of fund to finance its operating activities.

Operating expenses decreased by $570,297, to $1,966,552 for the second quarter of 2011 from $2,536,849 for the second quarter of 2010. This decrease is attributable to reduced R&D and selling and business development expenses.

Based on the above, for the second quarter of 2011, DiagnoCure recorded a net loss of $1,601,439 or $0.04 per share, compared with $2,204,832 or $0.05 per share, for the same period of 2010.