/R E P E A T -- DiagnoCure announces second quarter 2008 results/



    Significant development towards the commercialization of Previstage(TM)
    GCC and royalties from the sales of the PCA3 test in progress

    QUEBEC CITY, June 13 /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 $3,372,374 or $0.08 per share
for the second quarter ending April 30, 2008. These results are substantially
in line with Management expectations. They reflect the significant progress
towards the commercialization of DiagnoCure's new Previstage(TM) GCC
Colorectal Cancer Staging Test, and royalties of the sales of the PCA3 test
progressing over last year second quarter. At the end of the quarter, cash,
short-term investments and long-term investments stood at $26,691,514.
    DiagnoCure also announces that, effective June 13, 2008, Mr. Alain
Rhéaume will succeed to Mr. Paul Gobeil as Chairman of the Board of directors
of the Company. Mr. Rhéaume is Founder and Managing Partner of Trio Capital
Inc. He cumulates over 30 years of experience in management in both the public
and private sectors. He has been Director of DiagnoCure's Board and a member
of the Audit Committee since 2005.
    Mr. Gobeil asked to be relieved of his duties as Chairman of the Board.
The Company will continue to enjoy his broad experience as he pursues his 
10-year tenure as a DiagnoCure Board member. Under Mr. Gobeil's remarkable
Chairmanship since 2005, the Board has implemented a rigorous corporate
governance program, ensured the hiring and transition of a new Chief Executive
Officer, and completed an extensive review of the strategic foundation of the
Company which translated into a new financing of $25 million, the acquisition
of five promising markers and products, and the upcoming launch of a new test
for colorectal cancer through the Company's new clinical laboratory in the
United States.

    Highlights of the Quarter


    Previstage(TM) GCC

    The Company successfully completed the development of its GCC colorectal
cancer staging test in its R&D facilities in Quebec City. The prototype test
was transferred to DiagnoCure's U.S. clinical laboratories for final
development and validation. The Company expects to meet the necessary
regulatory requirements in time to commercially launch Previstage(TM) GCC this
summer.
    To bolster its commercialization activities in the U.S., DiagnoCure has
hired experienced sales professionals in the United States, and finalized the
development of its government and insurance reimbursement plan, which is being
implemented through Premier Source, a leading provider of reimbursement
services to pharmaceutical and diagnostic companies.
    At the recent American Society of Clinical Oncology (ASCO) annual meeting
in Chicago, attended by 30,000 health practitioners concerned with cancer,
DiagnoCure introduced Previstage(TM) GCC, a molecular diagnostic solution for
the need to more accurate staging of colorectal cancer. This major milestone
allowed the Company to educate the oncology community about the potential of
Previstage(TM) GCC. ASCO also featured a number of important studies about
colorectal cancer, including one from Dr. Scott Waldman on his discovery and
clinical implications of the GCC marker. Key opinion leaders from the
colorectal cancer treatment community expressed great interest in the
Company's Previstage(TM) GCC test and Dr. Waldman's presentation.

    PCA3 testing

    At the end of March, DiagnoCure and Gen-Probe, the Company's PCA3
development and commercialization partner, participated in the European
Association of Urology (EAU) annual meeting. Two posters discussing the
clinical utility of the PCA3 test for prostate cancer risk were presented and
very well received by the attending health practitioners.
    In May, the PCA3 test was a subject of several key presentations and
three exhibits at the meeting of the American Urological Association (AUA) in
Orlando, Florida, attended by urologists from around the world. Gen-Probe
featured the test in its exhibition booth, and Dianon (LabCorp) and AmeriPath
(Quest) had their versions of the test prominently featured as well. Dr. Yves
Fradet, Founder and Chief Medical Officer of DiagnoCure, presented the latest
clinical information on PCA3 to an audience of an estimated 10,000 attendees.
    In April and May, the value and performance of the PCA3 test were
featured in two important articles published in the Journal of Urology. The
first one established that PCA3 is an accurate marker for prostate cancer that
may reduce the number of unnecessary biopsies. The second article concluded
that PCA3 scores correlate with both tumor volumes and prostatectomy Gleason
scores, both of which are measures of prostate cancer aggressiveness. As a
result, researchers suggested that PCA3 may have clinical applicability in
identifying men who have low-volume or low-grade prostate cancer and who could
be followed with active surveillance instead of requiring immediate treatment.
This latter article received significant high visibility press coverage in the
United States and in Europe, and the study could further increase both the
utility and market potential of PCA3.
    The publication of these results coincided with the announcement that the
Broomfield Hospital in Chelmsford, U.K., would now have the PCA3 test
reimbursed by the National Health Service through their local trust.

    Results for the second quarter ended April 30, 2008

    Total revenues for the second quarter of 2008 were $516,109 compared with
$1,232,559 for the second quarter of 2007. In the second quarter of 2008,
DiagnoCure had no revenue recognition of the continued calendar payments and
research agreement from Gen-Probe compared with $772,667 received from the
prior year second 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 $46,591 for the second
quarter of 2008, compared with $27,873 for the second quarter of 2007. Sales
of DiagnoCure's non-invasive bladder cancer test, ImmunoCyt(TM) / uCyt+(TM),
were $86,906 for the second quarter of 2008 versus $127,059 for the same
period a year ago. Income from research and development contracts,
predominantly with Gen-Probe, decreased in 2008 by $72,918 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 $47,644 compared with $25,035 in the
second quarter of 2007.
    Interest income increased $127,961, to $334,968 for the second quarter of
2008 compared with $207,007 for the second quarter of 2007. The increase is
attributable to the interest generated on the net proceeds of $23,353,098
received from the April 2007 financing.
    Cost of sales increased $22,226 from $64,524 for the second quarter of
2007 to $86,750 for the second quarter of 2008. This increase is related to
higher samples sales. Research and development expenses, net of investment tax
credits, increased by $812,090, from $663,222 for the second quarter of 2007
to $1,475,312 for the same quarter in 2008. The increase in research and
development expenses is attributable to the development and transfer, to our
U.S. clinical laboratory, of the GCC colorectal cancer staging test.
DiagnoCure intends to launch the Previstage(TM) GCC Colorectal Cancer Staging
Test this summer.
    Based on the above, for the second quarter of 2008, DiagnoCure recorded a
net loss, before stock-based compensation, of $3,052,970 compared with
$762,817 for the same period of 2007. The net loss including stock based
compensation was $3,372,374 or $0.08 per share for the second quarter of 2008,
compared with $1,190,092, or $0.03 per share, for the second quarter of 2007.
These results are 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 tests for the detection
and management of cancer. Further, the second quarter 2008 loss also reflects
the Company's U.S. sales and marketing and clinical laboratory activities.
Management is satisfied that it has adequate cash resources and will continue
to monitor its cash level, as sales and marketing activities accelerate.

    
    Financial data

    -------------------------------------------------------------------------
                                Three months ended         Six months ended
    For the periods of                April 30                  April 30
                             ------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    Sales                     134,550      152,093      249,788      272,042
    -------------------------------------------------------------------------
    Revenue under
     research and
     license agreement         46,591      873,459       87,378    1,733,792
    -------------------------------------------------------------------------
    Interest                  334,968      207,007      670,398      403,302
    -------------------------------------------------------------------------
    Total revenues            516,109    1,232,559    1,007,564    2,409,136
    -------------------------------------------------------------------------
    Cost of sales              86,750       64,524      156,540      148,986
    -------------------------------------------------------------------------
    Gross margin              429,359    1,168,035      851,024    2,260,150
    -------------------------------------------------------------------------
    Operating expenses
     (before stock-based
     compensation and
     restructuring charges) 3,482,329    1,930,852    6,300,009    4,112,537
    -------------------------------------------------------------------------
    Net loss (before
     stock-based
     compensation
     and restructuring
     charges)              (3,052,970)    (762,817)  (5,448,985)  (1,852,387)
    -------------------------------------------------------------------------
    Restructuring charges           -            -            -      912,685
    -------------------------------------------------------------------------
    Stock-based compensation  319,404      427,275      608,698      882,500
    -------------------------------------------------------------------------
    Net loss               (3,372,374)  (1,190,092)  (6,057,683)  (3,647,572)
    -------------------------------------------------------------------------
    Diluted net loss
     per share                  (0.08)       (0.03)       (0.14)       (0.10)
    -------------------------------------------------------------------------
    Weighted average
     number of
     common shares
     outstanding           41,771,308   36,493,714   41,745,438   35,461,293
    -------------------------------------------------------------------------


    Balance Sheet (Unaudited)

    As of April 30

    -------------------------------------------------------------------------
                                                           2008         2007
    -------------------------------------------------------------------------
    Cash, cash equivalents, temporary and
     long-term investments
    -------------------------------------------------------------------------
                                                     26,691,514   39,190,161
    -------------------------------------------------------------------------
    Total assets                                     40,255,392   45,583,883
    -------------------------------------------------------------------------
    Shareholders' equity                             34,897,252   40,422,159
    -------------------------------------------------------------------------
    Number of common shares outstanding              41,831,297   40,382,878
    -------------------------------------------------------------------------
    

    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, in Europe as the CE-marked PROGENSA(TM) PCA3 in
vitro assay, and in Canada. 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.




For further information:

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

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