DiagnoCure provides business up-date
23 Apr, 2015, 17:00 ET
QUEBEC CITY, April 23, 2015 /CNW Telbec/ - DiagnoCure Inc. (TSX: CUR) (OTCQX: DGCRF) (the "Corporation") today reports on its continuing efforts to improve corporate value for its shareholders and preserving operating funds to ensure all options for the Corporation. These continuing efforts include: (1) maintaining productive discussions regarding the licensing of the Corporation's assets, (2) continuing discussions with a select group of companies regarding a potential strategic combination of assets and, (3) implementation of additional steps under the contingency plan of the Corporation.
First, DiagnoCure management and consultant have been in contact with several potential partners towards licensing the Previstage® GCC colorectal cancer staging test. Management is optimistic that new opportunities will emerge as a result of this effort. Additionally, in depth discussions with potential licensees of the Corporation's newly developed multi-marker prostate cancer test have also been intensified, following extended analysis of the data generated by our clinical study. Data demonstrating the potential clinical utility of this new prostate cancer test was well received at the last meeting of the European Urological Association in Madrid in March and will be featured at the upcoming meeting of the American Urological Association in May.
Second, management is also actively exploring potential strategic merger possibilities for its business with companies whose own assets combined with those of DiagnoCure might lead to a strengthening of market position for both partners.
Third, effective today and in accordance with a contingency plan established by the Corporation's Board of Directors, DiagnoCure will proceed to a selective reduction of its staff by not recalling the employees that were laid off temporarily at the end of October 2014. These layoffs may result in a non-recurring charge of up to $215k in the second quarter of 2015, and annual savings of up to $284k going forward compared to fiscal year 2014. "Although it is unfortunate and difficult to part company with longstanding and dedicated employees, in accordance with the contingency plan implemented by the Corporation and in view of the uncertainty surrounding the moment when various discussions and activities now under way will yield a positive outcome, it had become necessary to take this step", stated Dr. Yves Fradet, President and Chief Medical Officer.
DiagnoCure reminds its shareholders that the Corporation's Annual General Meeting (AGM) will be held on April 30, at 1:30 pm EDT, at the offices of McCarthy Tetrault, 1000 de la Gauchetière Street West, Suite 2500, Montréal (Québec) H3B 0A2. At the completion of the formal business portion of the meeting, Dr. Yves Fradet, President and Chief Medical Officer of the Corporation, and Richard Bordeleau, Senior Advisor to the Board, will make a presentation during which they will touch upon the following topics in relation with the execution of the Corporation's plan:
- Review of scientific progress
- Review of business development initiatives
- Financial summary
- Highlights and corporate focus
The presentation will be available on DiagnoCure's website at www.diagnocure.com through a link on the investor's page from 2:00 pm EDT on the day of the AGM for those unable to attend it.
DiagnoCure (TSX: CUR; OTCQX: DGCRF) is a life sciences corporation that develops and provides molecular and genomic tests to support effective clinical decisions enabling personalized medicine in oncology. Previstage® GCC and the Corporation new multimarker prostate cancer test are currently available for licensing. The Corporation has granted a worldwide exclusive license on the diagnostic applications of PCA3 for the development and commercialization of a prostate cancer test which is now commercialized in Europe under CE mark and approved for commercialization in Canada and the United States. For more information, please visit www.diagnocure.com.
This release may contain forward-looking statements that involve known and unknown risks, uncertainties and assumptions that may cause actual results to differ materially from those expected. Forward-looking statements can be identified by the use of the conditional or forward-looking terminology such as "anticipates", "assumes", "believes", "estimates", "expects", "intend", "may", "plans", "projects", "should", "will", or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. All such forward-looking statements are made pursuant to the "safe-harbour" provisions of applicable Canadian securities laws. By their very nature, forward-looking statements are based on expectations and assumptions and also involve risks and uncertainties, known and unknown, many of which are beyond DiagnoCure's control. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Corporation's current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Corporation's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and that they should not place undue reliance on these forward-looking statements. For instance, any forward-looking statements regarding the outcome of research and development projects, clinical studies and future revenues, including those related to PCP Risk Score are based on management expectations and such outcome may vary materially depending on global political and economic conditions, dependence on collaboration partners, uncertainty of healthcare reimbursement, and marketing and distribution challenges. 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 unless required by the applicable securities laws and regulations.
SOURCE DiagnoCure inc.
For further information: Investors, DiagnoCure Inc., Frédéric Boivin, Sr. Director. Finances and Administration, (418) 527-6100, [email protected]; Media, DiagnoCure Inc., Danielle Allard, Sr. Director, Corporate Affairs, (418) 527-6100, [email protected]
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