NEW YORK (GenomeWeb) – GeneNews reported today a 78 percent decrease in second quarter revenues, reflecting a drop off in sales of its ColonSentry colorectal cancer blood test and other diagnostics.
For the three-month period ended June 30, GeneNews' revenues — generated entirely through the sale of its diagnostics — fell to $113,513 from $527,347 a year earlier. The company did, however, process more than 1,800 tests through its recently acquired clinical reference lab Innovative Diagnostic Laboratory (IDL), three times more than the number processed in the first quarter of the year.
The Canadian firm's net loss in the quarter was down 70 percent to $456,828, or $.01 per share, from $1.5 million, or $.02 per share, in the same period the year before. GeneNews in part attributed the decrease to a $1.3 million change in revaluation of warrants associated with repricing of warrants in June.
Also contributing to the narrowed loss was a slight decrease in second quarter general and administrative costs to $1.1 million from $1.2 million the year before. GeneNews reported no research and development spending in the quarter.
At the end of June, GeneNews had cash and cash equivalents totaling $61,154.
During the second quarter, GeneNews announced that it had signed a binding agreement with Milost Global for up to $10 million in equity and debt financing, with a $3 million initial drawdown. And last month, the firm announced a warrant exercise incentive program that will close August 31.
"We estimate our outstanding 2017 billings at approximately $1.4 million and continue to anticipate that our recognized revenue will begin to grow in the months ahead," GeneNews Chairman and CEO James Howard-Tripp said in a statement.
Additionally, the company said it has undertaken a number of initiatives to boost revenues including adding blood-draw facilities, including a mobile phlebotomist component, to support outreach to large healthcare systems, hospitals, clinically integrated networks, large physician groups, and specific at-risk communities. GeneNews said it now has access to over 8,000 blood-draw sites in the US.