TORONTO, April 3, 2017 /CNW/ - GeneNews Limited (TSX:GEN) ("GeneNews" or the "Company") today announced operational and financial results for the three-month and full year periods ended December 31, 2016.
"2016 was a pivotal year for GeneNews. Through the buyout of IDL in May 2015 and March 2016, we were able to establish full control of the laboratory, allowing for the refinancing of GeneNews and the new focus on positioning our early cancer diagnostic tests in the risk stratification of patients so that those at highest risk are prioritized for advanced diagnosis and treatment," commented James R Howard-Tripp, GeneNews' Chairman and CEO. "Our collaboration with JTS Health Partners, announced end of March 2016, has focused our commercialization path on providing diagnostic services to hospitals, clinically integrated networks, large physician groups and other, large healthcare providers. Our subsequent partnerships with NueHealth, announced in September 2016, and the Midwest multi-specialty physician group, announced in March 2017, are evidence that our business strategy is sound and that our leading edge, blood-based molecular diagnostics for the early detection of cancer have a key place in increasing the number of patients who will participate in screening. GeneNews, with our partner JTS, is in active discussions with multiple, large healthcare providers regarding use of our early cancer diagnostic tests, and we expect to continue to add to the list of active users."
Mr. Howard-Tripp added, "This first quarter of 2017 has seen a full resumption of test activity within the lab, the reinvigoration of existing clients, the enrollment of new practices and physicians, increasing test volume, and the launch of a major new diagnostic, BreastSentry®, for the early detection of breast cancer."
Effective July 1, 2015, GeneNews changed its functional and presentation currency to U.S. dollars given the increasing prevalence of U.S. dollar denominated activities of the Company over time. These fourth quarter and full year 2016 financial results are presented in U.S. dollars and prior period comparable information is restated to reflect the change in presentation currency. Results are reported in accordance with International Financial Reporting Standards.
For the quarter ended December 31, 2016, GeneNews reported a consolidated net income of $1.0 million, or $0.02 net income per common share, as compared with a consolidated net loss of $1.5 million, or $0.02 net loss per common share, for the same period in 2016. Total revenue for the three-months ended December 31, 2016, was approximately $0.3 million, compared to nil in the same period in 2016. At December 31, 2016, management analyzed the goodwill associated with its March 15, 2016 purchase of the controlling interest in IDL for impairment by surveying market based merger and acquisition transactions for companies which are of a comparable size and stage of commercialization as IDL. Based on this analysis, the goodwill at December 31, 2016 was estimated at $1.1 million and the impairment estimate made in a prior quarter was reversed.
For the year ended December 31, 2016, GeneNews reported a consolidated net loss of $5.9 million, or $0.09 loss per common share, as compared with a consolidated net loss of $6.0 million, or $0.11 loss per common share, for the same period in 2015. Total revenue for the year ended December 31, 2016, was approximately $1.1 million, compared to $0.3 million in the same period in 2015, an increase that was reflected in the consolidation of cash collection by IDL since March 15, 2016. The $0.1 million decrease in net loss primarily results from a $2.7 million decline in share of loss in IDL, $0.7 million increase in revenue, $0.4 million decline in sales and marketing expenses and $0.3 million decline in asset impairment; offset by a $1.5 million increase in cost of goods sold, $1.1 million increase in general and administrative costs, $0.7 million increase in loss upon revaluation of warrants, $0.6 million increase in finance costs and $0.1 million increase in change in fair value of conversion liabilities. The overall mix of expenses incurred in 2016 has changed from that in 2015, given the Company's March 2016 acquisition of the remaining 50% interest in IDL.
The Company had approximately $0.2 million in cash and cash equivalents as at December 31, 2016.
The Company's annual financial statements, management's discussion and analysis, annual information form and the related officer certifications for the financial year ended December 31, 2016 were filed on www.sedar.com on March 30, 2017.
GeneNews, an innovator in the liquid biopsy space, is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. Our mission is to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical intelligence and actionable information to improve health out-comes through the early diagnosis of disease. Our Richmond, Virginia-based Innovative Diagnostic Laboratory clinical reference lab specializes in traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient populations. Currently, IDL offers risk assessment blood tests for four prevalent cancer types - colon, lung, prostate and breast. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews and IDL can be found at www.GeneNews.com and www.myinnovativelab.com, respectively.
This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties that could cause the Company's actual events to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.
SOURCE GeneNews Limited
For further information: Company Contact: James R. Howard-Tripp, Chairman & CEO, Office: (905) 209-2030, [email protected]; Investor & Media Contact: Stephen Kilmer, Office: (212) 618-6347, Mobile: (647) 872-4849, [email protected]