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DiagnoCure's Q2 Revenues Fall 85 Percent

NEW YORK (GenomeWeb News) – Canadian cancer diagnostics firm DiagnoCure reported after the close of the market on Monday that revenues for its fiscal second quarter fell 85 percent year over year.

Revenues for the three months ended April 30 were C$164,262 (US$159,770), compared to C$1.1 million in the second quarter of 2012. The drop-off was attributed largely to a payment from Hologic's Gen-Probe business of C$502,600 a year ago related to a US Food and Drug Administration milestone reached for Gen-Probe's Progensa PCA3 test, DiagnoCure said. Gen-Probe acquired the exclusive worldwide diagnostic rights to the PCA3 gene from DiagnoCure in late 2003.

The balance of the revenue decrease resulted from the termination of a development and licensing agreement with Signal Genetics. DiagnoCure said that the agreement, reached in 2011, was terminated this past January, and added at the time that it had regained all commercial rights and control of its intellectual property around its GCC biomarker, which was the basis of Signal Genetics' Previstage GCC colorectal cancer test.

The two firms also reached a settlement, under which Signal paid DiagnoCure US$200,000.

All revenues for the recently completed quarter were the result of royalty revenues from Gen-Probe and were down almost 3 percent from C$168,663 a year ago.

DiagnoCure's net loss for the quarter increased to C$849,344, or C$.02 per share, from a net loss of C$272,216, or C$.01 per share, a year ago.

Operating expenses before stock-based compensation, depreciation, and amortization was cut 26 percent to C$774,042 from C$1.1 a year ago.

The Quebec City, Quebec-based company finished the quarter with C$4.8 million in cash, cash equivalents, temporary, and long-term investments.