NEW YORK (GenomeWeb) – GeneNews today reported a 44-fold year-over-year increase in its second quarter revenues.
The Toronto-based molecular diagnostics company reported that for the three months ended June 30, its revenues rose to C$441,111 (US$592,137) from C$10,019 in the year-ago period. Royalty revenues made up all of GeneNews' revenues for the recently completed quarter and were up from C$7,472 a year ago. The firm had no test revenues for Q2 2014, compared to C$2,547 a year ago.
In a statement, GeneNews Executive Chairman James Howard-Tripp said that its joint venture, Innovative Diagnostic Laboratory, formed a year ago, processed more than 46,000 tests in the quarter, a greater-than-three-fold increase from the first quarter, and added that the growth has continued into the third quarter. During the second quarter, IDL had total revenues of C$1.9 million. GeneNews did not disclose the revenue contribution from IDL during the quarter.
GeneNews' net loss in the quarter was C$2.7 million, or C$.06 per share, compared to a net loss of C$1.9 million, or $.06 per share, a year ago. GeneNews used about 44 million shares to calculate its loss on a per-share basis in Q2 2014, compared to almost 34 million shares in the year-ago period.
The company said that the increase in its loss resulted primarily from its share of IDL's loss.
GeneNews slashed its R&D costs to zero from C$572,656 a year ago, while it trimmed its SG&A costs 8 percent year over year to C$1.3 million from C$1.2 million.
The company ended the quarter with C$545,916 in cash and cash equivalents. Subsequent to the end of Q2, it raised C$7.2 million in a private placement.
"Moving into the second half of 2014, menu expansion remains a key priority and we are in discussions with several entities with respect to in-licensing their products," Howard-Tripp said. "The addition of new tests to our ColonSentry, EarlyCDT-Lung and [Beckman Coulter's Prostate Health Index] offerings is a central component of the IDL model which is designed to help accelerate growth, stratify commercial risk and advance us down the pathway toward positive cash-flows and net profitability."