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Last updated on April 24, 2014 at 17:35 EDT

DiagnoCure announces second quarter 2013 results

June 3, 2013

QUEBEC CITY, June 3, 2013 /PRNewswire/ – DiagnoCure Inc. (TSX: CUR)
(OTCQX: DGCRF) (the “Corporation”) today reported financial and
operational results for the second quarter ended April 30, 2013. The
Corporation announced a net loss of $849,344 or $0.02 per share for
this quarter. At the end of the quarter, cash and short-term
investments stood at $4,849,305.

Second Quarter Highlights

On April 2, 2013, the Corporation initiated trading on OTCQX( )International under the symbol “DGCRF”. OTCQX is the best U.S. OTC
marketplace, providing an opportunity to significantly broaden and
enhance DiagnoCure’s access to and exposure within the U.S. financial
markets. In addition, the Corporation’s information has been made
available via Standard & Poor’s Corporation Records Listing Program.

Because the concept that PCA3 can become a product of reference to help
better diagnose prostate cancer patients is becoming more and more
evident in the clinical community, we are in the midst of a productive
dialogue with Hologic’s management regarding ways to optimize the value
of PCA3 for both companies.

Despite the current unsettled status of molecular diagnostics
reimbursement policy in the U. S., PROGENSA(R) PCA3 royalties from U.S.
sales paid to DiagnoCure in the second quarter by Hologic Gen-Probe
increased 21% compared with second quarter results in fiscal year 2012.
This increase represents the fifth straight quarter over quarter
increase in the U.S. market-associated-PROGENSA(R) PCA3 second quarters
royalties received by DiagnoCure since 2008.

On April 29, 2013, during the Annual and Special Meeting of
Shareholders, Dr. Yves Fradet, President and Chief Medical Officer
announced the initiation of a search for a full-time CEO to achieve
maximum leverage from DiagnoCure’s product development platform. The
new CEO will be expected to lead and enhance DiagnoCure’s business and
product development efforts.

Results of the Second Quarter 2013

Total revenues for the second quarter 2013 were $164,262 compared with
$1,063,131 for the same period of 2012. This decrease of $898,869 is
attributable to the payment made by Gen-Probe in relation to the FDA
milestone reached for PROGENSA(R) PCA3 in the second quarter 2012
($502,600). The remaining decrease is attributable to the termination,
on January 11, 2013 of the development and license agreements signed in
June 2011 with Signal Genetics. That development agreement provided
$387,266 of revenues in the second quarter 2012. In the second quarter
2013, royalty revenues from Hologic Gen-Probe decreased by $4,401, or
2.6%, to $164,262, from $168,663 for the same period of 2012. This
decrease is attributable to a decrease of 39% in the European market,
reflecting a general softness in the European markets offset by an
increase of 21% in the U.S. market reflecting primarily an increase in
the average selling price of PROGENSA(R) PCA3. This increase was offset
partially by changes in the reimbursement environment for molecular
diagnostic tests.

Operating expenses decreased by $321,741, to $1,013,606 for the second
quarter of 2013 from $1,335,347 for the same period of 2012. This
decrease was mainly attributable to the termination of the development
agreement performed in Q2 2012 in support to the Previstage(TM) GCC Colorectal Cancer Staging Test.

Financial Data

     ____________________________________________________________________
    |                                 |For the three months periods ended|
    |                                 |             April 30             |
    |                                 |__________________________________|
    |                                 |    2013  |              2012     |
    |_________________________________|__________|_______________________|
    |                                 |         $|                      $|
    |_________________________________|__________|_______________________|
    |Research collaboration revenues  |   --|                387,266|
    |_________________________________|__________|_______________________|
    |License and royalty revenues     |   164,262|                675,865|
    |_________________________________|__________|_______________________|
    |Total revenues                   |   164,262|              1,063,131|
    |_________________________________|__________|_______________________|
    |Operating expenses (before       |   774,042|              1,052,250|
    |stock-based compensation,        |          |                       |
    |depreciation and amortization)   |          |                       |
    |_________________________________|__________|_______________________|
    |Net profit (loss) (before        | (609,780)|                 10,881|
    |stock-based compensation,        |          |                       |
    |depreciation and amortization)   |          |                       |
    |_________________________________|__________|_______________________|
    |Stock-based compensation         |    22,094|                 43,813|
    |_________________________________|__________|_______________________|
    |Depreciation of property, plant  |    17,865|                 31,691|
    |and equipment                    |          |                       |
    |_________________________________|__________|_______________________|
    |Amortization of intangible asset |   199,605|                207,593|
    |_________________________________|__________|_______________________|
    |Net loss and comprehensive loss  | (849,344)|              (272,216)|
    |_________________________________|__________|_______________________|
    |Basic and diluted net loss per   |    (0.02)|                 (0.01)|
    |share                            |          |                       |
    |_________________________________|__________|_______________________|
    |Weighted average number of common|43,040,471|             43,033,471|
    |shares outstanding               |          |                       |
    |_________________________________|__________|_______________________|

Consolidated Balance Sheets

     _____________________________________________________________________
    |                                     |April 30, 2013|October 31, 2012|
    |_____________________________________|______________|________________|
    |Cash, cash equivalents, temporary and|     4,849,305|       5,824,771|
    |long-term investments                |              |                |
    |_____________________________________|______________|________________|
    |Total assets                         |     9,673,265|      11,256,369|
    |_____________________________________|______________|________________|
    |Shareholders' equity                 |     8,871,282|      10,448,087|
    |_____________________________________|______________|________________|
    |Number of shares outstanding         |    43,040,471|      43,040,471|
    |_____________________________________|______________|________________|

Conference call

DiagnoCure’s management will host a conference call at 4:30 p.m. (EDT)
on June 3, 2013. Interested participants may listen to the call by
dialing 1-888-231-8191 or 514-807-9895 and referencing code 77464078
approximately 15 minutes prior to the call. The Corporation will also
provide a live webcast of the call. Interested participants may access
the webcast on DiagnoCure’s website at www.diagnocure.com, through a link on the Investors page – Presentations. A replay of the
webcast will be available on DiagnoCure’s website for those unable to
participate in the live webcast.

About DiagnoCure

DiagnoCure (TSX: CUR; OTCQX: DGCRF) is a life sciences corporation that
develops and commercializes high-value cancer diagnostic tests that
increase clinician and patient confidence in making critical treatment
decisions. In 2008, the Corporation launched a colorectal cancer
staging test through its U.S. CLIA laboratory. PrevistageTM GCC is
currently available for licensing. The Corporation has granted a
worldwide exclusive license to Gen-Probe, now a wholly-owned subsidiary
of Hologic Inc. operating as Hologic Gen-Probe, for the development and
commercialization of a prostate cancer test using PCA3, DiagnoCure’s
proprietary molecular biomarker. Hologic Gen-Probe’s PROGENSA(R) PCA3
test is commercialized in Europe under CE mark and is approved for
commercialization in Canada and the United States. For more
information, please visit www.diagnocure.com.

Forward looking statements

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
hypotheses 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 PROGENSA(R) PCA3, 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.


Source: PR Newswire