TORONTO, May 30, 2011 /CNW/ - SQI Diagnostics Inc. (TSXV: SQD), a life sciences company that develops and commercializes proprietary
multiplexing technologies and products for advanced microarray
diagnostics, today announced its financial and operational results for
the second quarter ended March 31, 2011.
Second Quarter Highlights
Delivered quantitative celiac test kits to Gamma Dynacare Medical Labs
(GDML) to support their evaluation of commercial use of the product.
Successful evaluation of the celiac test kits may lead to GDML
purchasing these kits. GDML currently purchases the Company's
rheumatoid arthritis test kits;
Continued the development of the Company's pipeline of autoimmune tests
including a quantitative 6-plex celiac DGP test panel, a quantitative
12-plex test panel for lupus and a quantitative 3-plex test panel for
vasculitis, among others. These test panels remain on track to be filed
with various regulatory agencies including Health Canada and the U.S.
Food and Drug Administration (FDA) this year;
Subsequent to quarter end, announced the Company received a license from
Health Canada permitting the Company to market its IgX PLEX™ Celiac
Panel, a quantitative 4-plex test kit, which will run on SQI's
automated SQiDworks™ Diagnostics Platform. This marks the Company's
fourth multiplexed test kit, and its second quantitative test kit,
approved by Health Canada; and
Subsequent to quarter end, announced the Company entered into a clinical
validation agreement with University North Carolina Kidney Center,
Chapel Hill, to evaluate SQI's new multiplexed, automated approach for
biomarker detection in vasculitis. When the validation study is
complete, SQI will compile and analyze the data and intends to submit
the results to various regulatory authorities including the FDA seeking
clearance to market the vasculitis test kits.
"We are steadily building our commercial portfolio of multiplexed,
autoimmune biomarker test panels," said Andrew Morris, Chief Financial
Officer of SQI Diagnostics. "These assays, along with our automated
SQiDworks Diagnostics Platform, provide clinical labs with unique tools
to support the diagnoses of autoimmune and other diseases at costs that
are significantly more affordable and efficient than industry
standards. Going forward, we are excited about the opportunity to
further diversify and strengthen our suite of saleable products in a
market where there is increasing demand for autoimmune, biomarker
For the quarter ended March 31, 2011, SQI recorded a net loss of
$1,874,000 or $0.06 per share, compared to a net loss of $2,020,000 or
$0.07 per share for the quarter ended March 31, 2010.
Gross research and development expenditures for the quarter ended March
31, 2011 were $1,114,000 compared to $1,273,000 for the quarter ended
March 31, 2010. R&D expenditures for the six month period ended March
31, 2011 were $2,612,000 compared to the $2,327,000 for the six month
period ended March 31, 2010. The increase in R&D expense for the six
month period ended March 31, 2011 compared to the six months ending
March 31, 2010 resulted from increased R&D activity with an increased
number of assay panels in development and to continued regulatory
validation efforts related to the celiac products
In the second quarter of fiscal 2011, in addition to the celiac assay in
regulatory validation, SQI had five panels in development and one
additional panel in early discovery and development. In the second
quarter of fiscal 2010, the Company had three panels in discovery and
Corporate and general expenses totaled $326,000 for the three months
ended March 31, 2011 compared to $258,000 for the three months ended
March 31, 2010. The increase from the quarter ended March 31, 2010
compared to the same period in 2011 was primarily a result of higher
salary costs, increased personnel and increased occupancy costs.
At March 31, 2011, current assets were $5,855,000 compared to $9,902,000
at September 30, 2010. Working capital as at March 31, 2011 was
$5,121,000 compared to $8,930,000 at September 30, 2010. As at March
31, 2011, there were 33,913,000 common shares issued and outstanding.
Detailed financial statements and the MD&A are available at
About SQI Diagnostics
SQI Diagnostics is a medical systems company that develops proprietary
technology in multiplexing, miniaturization and automation. SQI
provides laboratories the ability to simultaneously analyze multiple
biomarkers, deliver accurate patient results in less time,
significantly reduce labour, and increase profits...All in One Drop.
For more information, please visit www.sqidiagnostics.com
Certain information in this press release is based on beliefs and
assumptions of the Company's senior management and information
currently available to it that may constitute forward-looking
information within the meaning of securities laws. Such statements
reflect the current views of the Company with respect to future events
and are subject to certain risks and uncertainties. Actual results,
events, and performance may differ materially. Readers are cautioned
not to place undue reliance on these forward-looking statements.
This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and may not be offered or sold within the
United States or to U.S. persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE SQI Diagnostics Inc.
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