CUR.t 5.00 - Up from 35c...the royalties they are getting could propel this stock into double digits by this time next year....good recurring revs from testing...nice space.
QUEBEC CITY, March 31 /CNW Telbec/ - DiagnoCure Inc. (TSX: CUR - News), a leading developer and provider of immunoassay and molecular diagnostic tests for early cancers, today announced its financial results for the first quarter ended January 31, 2004.
Early in the quarter, DiagnoCure announced the signing of an exclusive worldwide license to Gen-Probe Inc. (NASDAQ: GPRO - News) for the development and commercialization of urinary diagnostic products using DiagnoCure's prostate cancer technology in return for CDN$14 million to be paid over three years, of which CDN$4 million was paid upfront. The Company will also receive an 8% royalty on the first portion of US$50 million on end-user net sales and a 16% royalty on all subsequent sales. This partnership with Gen-Probe, a world leader in the nucleic acid testing market, can make DiagnoCure's uPM3(TM) urinary test for prostate cancer the first gene-based adjunctive screening test to the widely used prostate specific antigen (PSA) blood test, which has many acknowledged deficiencies.
DiagnoCure also announced the acquisition of the assets of SAMBA Technologies, a leader in digital imaging and information technology. In addition to the potential for numerous new applications in cancer diagnostic assays, this acquisition enabled DiagnoCure to launch Odyssee(TM), the first generation automated version of ImmunoCyt(TM) / uCyt+(TM) in the previous weeks. This product introduction and the focused search for a distribution partner will be the driving force behind our continuing efforts to penetrate the US marketplace.
During this quarter, the Company made significant progress in its lung cancer test development by implementing two consecutive protocols. Potential markers are being tested in various types of tissue samples from patients at high risk of being diagnosed with lung cancer. This is being done to evaluate those markers for potential use in its prototype nucleic acid-based assay. Preclinical results are expected by the summer of 2004.
Financial Results
Revenues for the period totalled $1,171,721 primarily due to a sum of $921,972 representing the quarterly revenue recognition of the upfront and calendar payments on the license agreement with Gen-Probe. Products sales were $208,091 for the first quarter of 2004 compared to $121,051 for the same period a year ago. Of the $14 million revenues that are to be paid over the next three years, DiagnoCure has already received $4 million of which only $921,972 can be recognized, as the Company must abide by the new accounting rules.
Operating expenses rose from $1,029,222 for the first quarter of 2003 to $1,493,188 for the same period in 2004, an increase of $463,966. This is primarily due to an increase in selling and business development expenses specifically related to the agreement with Gen-Probe. For the first quarter of 2004, DiagnoCure recorded a net loss of $321,467, or $0.01 per share, compared with a net loss of $870,884, or $0.03 per share, for the first quarter of 2003.
At the end of the first quarter, cash and short-term investments stood at $6,909,402 compared to $4,141,186 at the end of the first quarter of 2003. Management is satisfied that it has adequate cash resources to execute its business plan in the near-term.
FINANCIAL DATA
Consolidated Statements of Operations
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For the periods Three months ended
January 31
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2004 2003
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Revenues (including interests) 1,171,721 158,338
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Operating expenses 1,493,188 1,029,222
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Gross R&D costs 565,525 495,192
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Net loss (321,467) (870,884)
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Loss per share (0.01) (0.03)
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Weighted average number of
common shares outstanding 29,079,585 29,050,712
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Consolidated Balance Sheets
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As at
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January 31, October 31,
2004 2003
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Cash, cash equivalents and temporary investments 6,909,402 4,141,186
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Total assets 8,461,263 5,279,716
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Shareholders' equity 4,447,397 4,675,372
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About DiagnoCure
DiagnoCure specializes in the development, production and commercialization of diagnostic tests for the early detection of cancers. DiagnoCure's first product, ImmunoCyt(TM) /uCyt+(TM), is an important tool for the diagnosis and monitoring of bladder cancer. In 2003, the company completed the development of uPM3(TM), a non-invasive test for the early detection of prostate cancer. The company launched this test in the ASR format through Bostwick Laboratories' network. In November 2003, DiagnoCure granted an exclusive worldwide license for the use of the PCA3 technology in prostate cancer diagnosis to Gen-Probe (NASDAQ: GPRO - News). DiagnoCure is actively pursuing the development of a prototype test for detection of lung cancer and has initiated identification and validation of markers for kidney cancer detection. The company is headquartered in Quebec City, Canada. Additional information can be found at www.diagnocure.com . |
