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GeneNews Posts 51 Percent Drop in Q3 Revenues

NEW YORK (GenomeWeb) – GeneNews reported today that its third quarter revenues fell 51 percent as the company is changing how it bills for its ColonSentry colorectal cancer blood test and other diagnostics.

For the three-month period ended Sept. 30, GeneNews' revenues fell to $54,290 from $111,103 in the year-ago quarter. In a statement, GeneNews Chairman and CEO James Howard-Tripp called the revenue results "disappointing and reflective of the changes we are currently making in our billing processes."

He further added that while certain of the company's improvement efforts are not yet reflected in its financial results, "we estimate our outstanding 2017 billings at approximately $1.8 million and continue to anticipate that our recognized revenue will begin to grow in the months ahead. Two pilot programs have demonstrated that our anticipated 70 percent recovery rate is achievable."

GeneNews also said that is ramping up for the launch of a new direct-to-consumer sales model. "This plan will allow us to connect the thousands of patients who reach out to us each year with a national network of physicians and 8,000 draw sites to dramatically improve patient access to our tests," Howard-Tripp said. "As part of the plan's execution, we are building an IT infrastructure that will allow us to report results electronically to physician networks and process patient payments online to generate immediate revenue."

GeneNews' third quarter net loss narrowed significantly to $601,853, or $.01 per share, from a loss of $2.8 million, or $.04, in the same period the year before, primarily due to a $1.5 million change in revaluation of warrants associated with repricing of warrants.

Meanwhile, the firm's Q3 SG&A costs were down 21 percent to $1.1 million from $1.4 million.

At the end of the quarter, GeneNews had cash and cash equivalents totaling $14,592. Earlier this month, GeneNews closed a $10 million financing deal and said it was making an initial draw down of $500,000 immediately.

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