TORONTO, Feb. 14, 2014 /CNW/ - SQI Diagnostics Inc. ("SQI" or the "Company") (TSX-V: SQD), a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, today announced financial and operational results for its fiscal first quarter-ended December 31, 2013.
"Over the last few months we secured agreements with three global pharmaceutical companies and a major biotechnology company, reflecting the growing enthusiasm for our multiplexed diagnostic technologies by drug developers," said Andrew Morris, CEO of SQI Diagnostics. "During the quarter, as we continued to advance our commercialization strategy, we also made substantial progress in product development, highlighted by the Canadian regulatory submission of our celiac diagnostic panel subsequent to the end of the quarter. These achievements continue to position SQI for success over the longer term and we are carefully managing our current resources as these opportunities mature."
Highlights for the quarter:
- Validation work for the Ig_plex Celiac DGP Panel successfully progressed through the first quarter, enabling the Company to file for a Health Canada license for the assay on February 12, 2014. The Company expects to file in the United States in the second fiscal quarter of 2014.
- During the quarter the Company entered into a commercial agreement with an Irving, California based pharmaceutical company (Global Pharma 3) for the development of an anti-drug antibody (ADA) assay to detect and measure immunogenic responses to a drug in the customer's extensive drug pipeline. The Company made significant progress on this assay during the quarter.
- Significant progress was made on the previously announced ADA assay development project for Isis Pharmaceuticals. The Company has presented data to Isis and believes it has met or exceeded the customer's expectations.
- SQI continued to develop an ADA assay to detect and quantify immune response to a new drug class under development by a major pharmaceutical company (Global Pharma 1). Positive data was generated during the development of the prototype and management anticipates this will result in a commercial agreement to complete a final product which, if successful, could be used for future clinical trials.
- Continued to work with a major pharmaceutical company (Global Pharma 2) in their evaluation of a recently completed 21-plex ADA assay. Major development milestones have been achieved to date on this project and the Company believes that it is well positioned to win on-going revenue from this agreement. The customer is also evaluating an 8-plex cytokine assay from SQI for a development-stage biologic.
- Subsequent to the end of the quarter, the Company completed a non-brokered private placement raising gross proceeds of $1,483,000.
For the quarter-ended December 31, 2013, SQI recorded a net loss of $1,501,000 or $0.03 per share, compared to a net loss of $1,563,000 or $0.04 per share for the quarter-ended December 31, 2012.
R&D expenditures, excluding amortization and stock based compensation, for the quarter-ended December 31, 2013 were $816,000 compared to $784,000 for the quarter-ended December 31, 2012. During the quarter the Company focused its R&D efforts on the validation testing of the Celiac DGP assay.
Corporate and general expenses excluding stock based compensation were $298,000 for the quarter-ended December 31, 2013 compared to $390,000 for the quarter-ended December 31, 2012. The decrease is a result of the Company's cost containment efforts including the reduction of one executive level position. In addition, travel costs which had previously been allocated to general and administrative costs have been split between sales and marketing and general and administrative based on the nature of the travel.
Sales and marketing expenses, excluding stock based compensation, totalled $150,000 for the three months ended December 31, 2013 compared to $109,000 for the three months ended December 31, 2012. The increase in sales and marketing expenses for the three months ended December 31, 2013 compared to the three months ended December 31, 2012 was primarily a result of increased expenditures on conferences and marketing efforts. In addition, travel costs for selling activities have been allocated to sales and marketing whereas previously all travel costs had been allocated to general and administrative costs.
At December 31, 2013, current assets were $632,000 compared to $1,724,000 at September 30, 2013. As at September 30, 2013 the Company has a $92,000 working capital deficit compared to a surplus of $1,270,000 at September 30, 2013. On January 27, 2014 the Company completed a non-brokered private placement of 2,965,000 units of the Company at $0.50 per unit for gross proceeds of $1,483,000. The Company believes that this financing and other cost reduction efforts result in the Company having sufficient funds to meet our anticipated cash requirements for approximately the next four months.
Detailed financial statements and the MD&A are available at www.sedar.com.
About SQI Diagnostics
SQI Diagnostics is a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics. The Company's proprietary microarray tests and fully-automated systems are designed to simplify protein and antibody testing workflow, increase throughput, reduce costs and provide excellent data quality. For more information, please visit www.sqidiagnostics.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "believe", "in the process", "is subject to" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our need for additional capital to sustain our business, statements with respect to sales of our Ig_ plex™ Celiac product and analytical systems, agreements and future agreements to sell our products, the success of our Diagnostic Tools and Services business and our intent to build near-term revenue streams from this business, the completion of our second-generation sqidlite platform, the build-out of our portfolio of quantitative tests, the successful regulatory filing and receipt of regulatory approvals for our later stage quantitative diagnostic kits , the acceleration of our revenue ramp, general economic and market segment conditions, competitor activity, technology changes and regulatory approvals. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
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SOURCE: SQI Diagnostics Inc.
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Chief Executive Officer
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