DiagnoCure announces first quarter 2008 results



    Ticker Symbol: CUR

    QUEBEC CITY, March 5 /CNW Telbec/ - DiagnoCure Inc. (TSX: CUR), a life
sciences company commercializing high-value cancer diagnostic tests and
delivering lab services, announced a net loss of $2,685,309 or $0.06 per share
for the first quarter ending January 31, 2008. These results are substantially
in line with Management expectations. They reflect the beginning of
DiagnoCure's U.S. initiatives in view of the upcoming launch of Previstage(TM)
GCC, the Company's new colorectal cancer staging test. At the end of the
quarter, cash, shortterm investments and long-term investments stood at
$30,336,246, up from $17,243,629 as at January 31, 2007. This increase is
attributable to the net proceeds from the April 2007 financing.

    Highlights of the Quarter

    In view of the significant progress made on Previstage(TM) GCC and the
upcoming commercial launch, DiagnoCure signed an agreement, in December 2007,
on a service lab located in West Chester, Pennsylvania. DiagnoCure Oncology
Laboratories will offer, throughout the North American market, testing
services under CLIA certification using Company's proprietary molecular tests.
    Also in December 2007, Gen-Probe, to which DiagnoCure licensed its PCA3
marker in 2003, announced additions to its European sales and marketing team
to support PCA3's continued commercialization development in that area.
    In January 2008, the American Society of Clinical Oncology held its
annual Gastrointestinal Cancers Symposium (ASCO GI). This event represented
the perfect opportunity for DiagnoCure to introduce to the medical community
the science behind Previstage(TM) GCC, the Company's new colorectal cancer
staging test. Previstage(TM) GCC employs qRT-PCR technology, which has been
shown to be up to 100,000-times more sensitive than traditional histopathology
in detecting occult metastases. The staging test could therefore help
physicians determine the most appropriate course of treatment for their
colorectal cancer patients.
    Finally, at the end of January, J.F. Bureau, CFA, joined DiagnoCure's
executive team as Senior Vice President and Chief Financial Officer. Mr.
Bureau's experience spans nearly twenty years on the North American and
European financial markets.

    Results for the first quarter ended January 31, 2008

    Total revenues for the first quarter of 2008 were $491,455 compared with
$1,176,577 for the first quarter of 2007. In the first quarter of 2008,
DiagnoCure had no revenue recognition of the continued calendar payments and
research agreement from Gen-Probe compared with $843,257 from the prior year
first quarter. This decrease reflects the end of the revenue recognition from
the continued calendar payments received from Gen-Probe which had been
amortized over a 42-month period from the signing of the original license
agreement. Royalty revenues from Gen-Probe were $40,787 for the first quarter
of 2008 compared to $17,077 for the first quarter of 2007. Sales of
DiagnoCure's non-invasive bladder cancer test, ImmunoCyt(TM)/uCyt+(TM), were
$79,688 for the first quarter of 2008 versus $81,912 for the same period a
year ago. Income from research and development contracts, predominantly with
Gen-Probe, has decreased in 2008 by $70,588 as specific PCA3-related
contracted R&D projects are completed. Also in this quarter, DiagnoCure sold
clinical samples to Gen-Probe, in support of their prostate cancer testing
R&D, for an amount of $35,550 compared with $38,036 in the first quarter of
2007.
    Interest income increased $139,135 to $335,430 for the first quarter of
2008 compared to $196,295 for the first quarter of 2007. The increase is
attributable to the interest generated on the net proceed of $23,353,098
received from the April 2007 financing.
    Cost of sales decreased $14,672, from $84,462 for the first quarter of
2007 to $69,790 for the first quarter of 2008. This decrease is related to
lower actual product sales, as noted above, for ImmunoCyt(TM)/uCyt+(TM) and
sample sales.
    Based on the above, for the first quarter of 2008, DiagnoCure recorded a
net loss, before stockbased compensation and restructuring charges, of
$2,396,015 compared with $1,089,570 for the same period of 2007. The net loss
including stock based compensation and restructuring charges was $2,685,309 or
$0.06 per share for the first quarter of 2008, compared with $2,457,480, or
$0.07 per share, for the first quarter of 2007. These results were
substantially in line with Management expectations and reflect activities
undertaken during the quarter in line with the Company's plans and 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 $30,336,246, down from $32,867,526 as at
October 31, 2007. This decrease of $2,531,280 is due to the use of cash to
finance our operating activities and acquisitions for this quarter. Management
is satisfied that it has adequate cash resources to execute its business plan
in the near-term and mid-term.

    
    Financial Data

    -------------------------------------------------------------------------
                                      For the first quarter ended January 31
                                      ---------------------------------------
                                                          2008          2007
    -------------------------------------------------------------------------

    Sales                                              115,238       137,025
    -------------------------------------------------------------------------
    Revenue under research and license agreement        40,787       843,257
    -------------------------------------------------------------------------
    Interest                                           335,430       196,295
    -------------------------------------------------------------------------
    Total revenues                                     491,455     1,176,577
    -------------------------------------------------------------------------
    Cost of sales                                       69,790        84,462
    -------------------------------------------------------------------------
    Gross margin                                       421,665     1,092,115
    -------------------------------------------------------------------------
    Operating expenses (before stockbased
     compensation and restructuring charges)         2,817,680     2,181,685
    -------------------------------------------------------------------------
    Net loss before stockbased compensation and
     restructuring charges                          (2,396,015)   (1,089,570)
    -------------------------------------------------------------------------
    Restructuring charges                                    -       912,685
    -------------------------------------------------------------------------
    Stockbased compensation                            289,294       455,225
    -------------------------------------------------------------------------
    Net loss                                        (2,685,309)   (2,457,480)
    -------------------------------------------------------------------------
    Basic and diluted net loss per share                 (0.06)        (0.07)
    -------------------------------------------------------------------------
    Weighted average number of common shares
     outstanding                                    41,720,130    34,462,537
    -------------------------------------------------------------------------


    Consolidated Balance Sheets

    -------------------------------------------------------------------------
                                                           As at January 31
                                                         --------------------
                                                          2008          2007
    -------------------------------------------------------------------------
    Cash, cash equivalents, temporary and longterm
     investments                                    30,336,246    17,243,629
    -------------------------------------------------------------------------
    Total assets                                    41,955,296    19,897,379
    -------------------------------------------------------------------------
    Shareholders' equity                            37,797,840    17,737,429
    -------------------------------------------------------------------------
    

    About DiagnoCure

    DiagnoCure (TSX: CUR) is a life sciences company commercializing
high-value cancer diagnostic tests and delivering laboratory services that
increase clinician and patient confidence in making critical treatment
decisions. DiagnoCure is currently preparing to launch the Previstage(TM) GCC
Colorectal Cancer Staging Test, the first GCC-based molecular test for the
management of colorectal cancer. In 2003, the Company entered into a strategic
alliance with Gen-Probe (NASDAQ:   GPRO) for the development and
commercialization of a second-generation test for PCA3, DiagnoCure's
proprietary molecular marker highly specific to prostate cancer. The test is
now available through laboratories in the U.S. using PCA3 analyte specific
reagents (ASR) from Gen-Probe, and in Europe as the CE-marked PROGENSA(TM)
PCA3 in vitro assay. In addition to its own research, the Company intends to
acquire or in-license additional promising cancer biomarkers from both
academic and commercial institutions. For more information, visit
www.diagnocure.com.

    Forward-looking statements

    This release contains forward-looking statements that involve known and
unknown risks, uncertainties and assumptions that may cause actual results to
differ materially from those expected. By their very nature, forward-looking
statements are based on expectations and hypotheses and also involve risks and
uncertainties, known and unknown, many of which are beyond DiagnoCure's
control. As a result, investors are cautioned not to place undue reliance on
these forward-looking statements. The forward-looking statements regarding the
outcome of research and development projects, clinical studies and future
revenues are based on management expectations. In addition, the reader is
referred to the applicable general risks and uncertainties described in
DiagnoCure's most recent Annual Information Form under the heading "Risk
Factors". DiagnoCure undertakes no obligation to publicly update or revise any
forward-looking statements contained herein.
    %SEDAR: 00003671EF




For further information:

For further information: Investors: J.F. Bureau, CFA, Sr. Vice President
and CFO, DiagnoCure Inc., (418) 527-6100, communications@diagnocure.com;
Media: Jean-Pierre Trudel, Jean-Pierre Trudel & Associates, (514) 347-6111,
jp.trudel@videotron.ca

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