TORONTO, May 2 /PRNewswire-FirstCall/ - GeneNews Limited (TSX: GEN), acompany focused on developing blood-based biomarker tests for the earlydetection of diseases and personalized health management, today reportedoperational and financial results for the first quarter ended March 31, 2008.
"During the quarter, we achieved several of the key milestones necessaryto support the commercialization of our first product, ColonSentry(TM), a riskstratification test for colorectal cancer," said Dr. K. Wayne Marshall,President and CEO of GeneNews. "We remain on track to launch thelaboratory-developed test (LDT) version of ColonSentry(TM) in the thirdquarter of 2008. The test will be administered as a service by our in-houseclinical reference lab located at our headquarters just north of Toronto,Canada. This novel test will initially target the estimated 1.5 million peopleover the age of 50 in the Greater Toronto Area who should be screened forcolorectal cancer, the vast majority of whom do not currently comply withscreening guidelines."
Financial results (CDN dollars) for the first quarter, ended March 31,2008:
Total revenue for the first quarter was $0.3 million compared to $1.7million for the same period last year. Revenue in the first quarter of 2008resulted from a collaboration agreement entered into with an Asian biomedicalconsortium to identify and validate a set of biomarkers in the field ofprostate diseases, for a total fee of $2 million (USD), while revenue in 2007resulted from a collaboration agreement with Pfizer completed in the firstfiscal quarter of 2007.
Total operating expenditures for the first quarter were $2.9 millioncompared with $3.5 million for the same period last year. Research anddevelopment expenses for the first quarter were $2.2 million compared with$2.7 million for the same period last year. General and administrativeexpenses for the first quarter were $0.5 million compared with $0.6 millionfor the corresponding quarter in the previous year.
The net loss for the first quarter was $2.6 million or a loss of $0.05 percommon share compared with a net loss of $1.7 million or a loss of $0.03 percommon share for the same period last year. The net loss is reflective of theCompany's continuing focus on research and development and product developmentleading to commercialization of its first product, ColonSentry(TM), and theadvancement of related products in the Company's pipeline.
As at March 31, 2008, the Company's cash and cash equivalents amounted to$9,116,406 compared to $11,279,030 as at December 31, 2007. The Companybelieves it has adequate resources to continue into the second quarter of 2009based on its current cash and cash equivalent position.
As at March 31, 2008 the Company had 55,587,103 common shares, 5,761,146stock options and 625,000 broker warrants outstanding.
Management's Discussion and Analysis of the financial statements for thethree-month period ended March 31, 2008 is available on SEDAR atwww.sedar.com.
GeneNews is focused on the application of functional genomics to enableearly diagnosis and personalized therapeutic intervention based ondisease-specific biomarkers. The Company has developed a novel approach, theSentinel Principle(TM), to detect and stage virtually any disease or medicalcondition from a simple blood sample. GeneNews is currently applying theSentinel Principle(TM) in major areas with unmet clinical needs such ascancer, arthritis, cardiovascular disease and neurological disorders.GeneNews' first product in development, ColonSentry(TM), is a convenient andpatient-friendly blood-based test that can assess an individual's current riskfor colorectal cancer. For more information on GeneNews, visitwww.genenews.com.
This press release contains forward-looking statements, which reflect theCompan