DiagnoCure announces fourth quarter 2007 and year-end results



    Ticker Symbol: CUR

    QUEBEC CITY, Dec. 14 /CNW Telbec/ - DiagnoCure Inc. (TSX: CUR), a life
sciences company commercializing high-value cancer diagnostic tests and
delivering lab services, announced a net loss from continuing operations of
$3,320,193 or $0.09 per share for the fourth quarter ending October 31, 2007,
and a net loss from continuing operations of $9,156,219 or $0.24 per share for
the fiscal year.
    These results are substantially in line with management expectations.
They reflect 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, the activities
undertaken during the past year to focus activities in line with Company
plans, as well as the on-going commitment to develop and acquire tests for the
detection and management of cancer. At the end of the quarter, cash,
short-term investments and long-term investments stood at $32,867,526, up from
$18,319,194 as at October 31, 2006. This increase of $14,483,332 is
attributable to the net proceeds of $23,353,098 from the April 2007 financing.

    Highlights of the Quarter

    On August 16, 2007, DiagnoCure announced that it had acquired Catalyst
Oncology of Worcester, MA, and its lead proprietary prognostic tests based on
Shc proteins for breast, colon and potentially other cancers. The terms of the
agreement called for an upfront payment of approximately US$3 million
comprised of cash and DiagnoCure shares followed by potential future payments
related to the achievement of specific milestones.
    The acquired tests have been validated in multiple clinical studies
involving patients with five tumor types. Results have shown the tests to be
strong indicators for a patient's risk of disease recurrence, as well as
predictors of response to certain cancer therapies, such as tamoxifen or
traditional chemotherapy.

    Results for the Fiscal year ended October 31, 2007

    Total revenues for 2007 were $3,467,425 compared with $5,033,092 for the
same period of 2006. Revenue recognition of the continued calendar payments
and research agreement from Gen-Probe was $1,711,940 for the period, down
$1,508,795 from the prior year due to 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 $127,843 for 2007 compared
with $11,944 for 2006. Sales of DiagnoCure's bladder cancer test,
ImmunoCyt(TM) / uCyt+(TM), were $352,351 for 2007 versus $378,327 for the same
period a year ago. There were no sales of uPM3(TM) by DiagnoCure in 2007 since
DiagnoCure had withdrawn its uPM3(TM) test from the market in mid-2006 when
Gen-Probe began to sell their version of the PCA3 test. Sales of the
DiagnoCure developed uPM3(TM) ASR prostate cancer test for 2006 were $376,660.
Also in 2007, DiagnoCure sold less clinical samples to Gen-Probe, for an
amount of $80,412 for 2007 compared with $258,418 for 2006, indicating the
completion of their R&D testing.
    Interest income increased $407,871 to $1,194,879 for 2007 compared with
$787,008 for the same period of 2006. The increase is attributable to the net
proceeds of $23,353,098 received in April 2007 from the public offering of
5,850,000 common shares at a price of $4.30 each.
    Cost of sales decreased by $321,230 from $585,515 for 2006 to $264,285
for 2007. This decrease is related to lower actual product sales, as noted
above.
    Based on the above, for the year ended October 31, 2007, DiagnoCure
recorded a net loss before stock-based compensation and restructuring charges
of $6,342,733, compared with $5,159,187 for the same period of 2006, an
increase of $1,183,546. The net loss from continuing operations including
stock-based compensation and restructuring charges was $9,156,219 or $0.24 per
share for 2007, compared with $6,491,586 or $0.19 per share, for the same
period of 2006. These results are in line with Company plans and the on-going
commitment to develop and commercialize tests for the detection and management
of cancer. Further, the 2007 loss also reflects steps taken to focus the
Company's vision on high-value diagnostic tests, by acquiring and in-licensing
additional cancer biomarkers and establish a reference laboratory to deliver
these tests to the clinical market.

    Results for the Fourth Quarter of Fiscal 2007

    Total revenues for the fourth quarter of 2007 were $495,844 compared with
$1,193,775 for the fourth quarter of 2006. In the fourth quarter of 2007,
Diagnocure had no revenue recognition of the continued calendar payments and
research agreement from Gen-Probe compared with $818,409 for the fourth
quarter of 2006. 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 $43,787 for the fourth quarter
of 2007 compared with $6,480 for the fourth quarter of 2006. Sales of
DiagnoCure's bladder cancer test, ImmunoCyt(TM) / uCyt+(TM), were down $31,717
to $80,218 for the fourth quarter of 2007 versus $111,935 for the same period
a year ago. Also in this quarter, DiagnoCure sold less clinical samples to
Gen-Probe, for an amount of $13,911 compared with $61,582 in 2006.
    Interest income increased $162,559 to $357,928 for the fourth quarter of
2007 compared with $195,369 for the fourth quarter of 2006. 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 $44,326 from $112,792 for the fourth quarter of
2006 to $68,466 for the fourth quarter of 2007. This decrease is related to
lower actual product sales, as noted above, for ImmunoCyt(TM) / uCyt+(TM) and
clinical samples sales.
    Based on the above, for the fourth quarter of 2007, DiagnoCure recorded a
net loss from continuing operation of $3,320,193 or $0.09 per share, compared
with a loss of $1,718,318, or $0.06 per share, for the fourth quarter of 2006.
These results are in line with management expectations.

    
    Financial Data

    -------------------------------------------------------------------------
                                Three-months ended       For the years ended
                                        October 31                October 31
                           -------------------------------------------------
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Sales                      94,129      173,517      432,763    1,013,405
    -------------------------------------------------------------------------
    Revenue under
     research and
     license agreement         43,787      824,889    1,839,783    3,232,679
    -------------------------------------------------------------------------
    Interest                  357,928      195,369    1,194,879      787,008
    -------------------------------------------------------------------------
    Total revenues            495,844    1,193,775    3,467,425    5,033,092
    -------------------------------------------------------------------------
    Cost of sales              68,466      112,792      264,285      585,515
    -------------------------------------------------------------------------
    Gross margin              427,378    1,080,983    3,203,140    4,447,577
    -------------------------------------------------------------------------
    Operating expenses
     (before stock-based
     compensation and
     restructuring
     charges)               3,105,854    2,300,192    9,545,873    9,606,764
    -------------------------------------------------------------------------
    Net loss from
     continuing
     operations
     (before stock-
     based compensation
     and restructuring
     charges)              (2,678,476)  (1,219,209)  (6,342,733)  (5,159,187)
    -------------------------------------------------------------------------
    Restructuring charges     350,000            -    1,262,685            -
    -------------------------------------------------------------------------
    Stockbased
     compensation             291,717      499,109    1,550,801    1,332,399
    -------------------------------------------------------------------------
    Net loss from
     continuing
     operations            (3,320,193)  (1,718,318)  (9,156,219)  (6,491,586)
    -------------------------------------------------------------------------
    Net loss from
     discontinued
     operations                     -     (389,394)           -     (595,044)
    -------------------------------------------------------------------------
    Net loss               (3,320,193)  (2,107,712)  (9,156,219)  (7,086,630)
    -------------------------------------------------------------------------
    Diluted net loss
     per share from
     continuing
     operations                 (0.09)       (0.06)       (0.24)       (0.19)
    -------------------------------------------------------------------------
    Weighted average number
     of common shares
     outstanding           41,718,463   34,450,147   38,422,096   34,401,548
    -------------------------------------------------------------------------


    Consolidated Balance Sheets

    -------------------------------------------------------------------------
                                                            As at October 31
                                                   --------------------------
                                                           2007         2006
    -------------------------------------------------------------------------
    Cash, cash equivalents, temporary and
     long-term investments                           32,867,526   18,319,194
    -------------------------------------------------------------------------
    Total assets                                     43,585,440   21,347,421
    -------------------------------------------------------------------------
    Shareholders' equity                             40,191,471   19,704,640
    -------------------------------------------------------------------------


    About DiagnoCure

    DiagnoCure (TSX: CUR) is a life sciences company commercializing
high-value cancer diagnostic tests and delivering lab services that increase
clinician and patient confidence in making critical treatment decisions.
DiagnoCure is currently preparing to launch the first GC-C-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 genetic 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 inlicense 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
forwardlooking statements contained herein.
    
    %SEDAR: 00003671EF




For further information:

For further information: John C. Schafer, President and Chief Executive
Officer, DiagnoCure Inc., (418) 527-6100, communications@diagnocure.com; Paule
De Blois, Vice President, Corporate Affairs, DiagnoCure Inc., (418) 527-6100,
communications@diagnocure.com; Jean-Pierre Trudel, Jean-Pierre Trudel &
Associates, (514) 347-6111, jp.trudel@videotron.ca

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