TORONTO, Nov. 11, 2016 (GLOBE NEWSWIRE) -- GeneNews Limited (TSX:GEN) (“GeneNews” or the “Company”) today reported operational and financial results for the three-month period ended September 30, 2016.
Corporate Update
The third quarter of 2016 was a period of significant progress for GeneNews:
- Signed first early cancer diagnostic partnership with a large healthcare group, NueHealth, LLC (“NueHealth”)
- Accelerated fundraising activities to support growth of the Company’s business
- Began the process of reducing the Company’s outstanding trade and other payables
- Adopted a new flat-fee business model, reducing GeneNew’s reliance on collections from third party payers
A central part of that early success has been GeneNews’ population health model whereby the portfolio of early cancer diagnostic tests offered through its Virginia-based clinical reference lab, Innovative Diagnostics Laboratory (“IDL”), provide important risk stratification at the beginning of the cancer diagnostic process, so that those patients who are at highest risk are prioritized for advanced diagnostic procedures.
“As healthcare providers actively seek ways to improve the cancer risk screening rates, our quick and convenient blood-based testing programs are uniquely positioned to help bridge that compliance gap,” explained James R Howard-Tripp, GeneNews’ Chairman & CEO. “Driven by the shift to value-based healthcare delivery, we are seeing that message begin to really resonate with the medical community. By leveraging our menu of advanced cancer tests, doctors now have the capability to implement cancer risk stratification programs for their patients that lead to improved patient compliance, reduced industry costs, better use of healthcare resources and, ultimately, improved patient outcomes.”
GeneNews’ partnership with NueHealth, announced in September 2016, is the first agreement from the Company’s collaboration with JTS Health Partners (“JTS”). NueHealth delivers value-based healthcare solutions and operates a growing nationwide system of integrated physician networks (“IPNs”). Under the agreement, NueHealth doctors will immediately be able to take advantage of three different GeneNews screening tests – ColonSentry®, earlyCDT®Lung and Prostate Health Index – which provide early risk stratification of colorectal cancer, lung cancer and prostate cancer, respectively. All three screenings utilize a quick and convenient blood test where the sample will be drawn at one of NueHealth's many provider-owned care centers, and then sent to IDL in Richmond, VA for analysis.
“I am pleased to report that we have begun the process of introducing the diagnostics to the NueHealth physicians. With NueHealth, we have identified multiple starting points, which include physicians within the IPNs as well as self-funded employers. Two early-adopter sites in Pennsylvania have been selected for training and process validation, and we expect initial on-boarding to be completed in the coming weeks,” said Mr. Howard-Tripp. “At the same time, we are preparing to expand the program to the identified additional groups."
Mr. Howard-Tripp added, "GeneNews and JTS are in discussions with multiple, large healthcare systems with respect to adoption of GeneNews' blood-based, early cancer screening diagnostics into their hospitals, integrated physician networks and employee bases. The use of convenient, blood-based tests to improve patient compliance, as well as allow for risk stratification of patients to improve health outcomes and optimal utilization of resources, is a solution to one of the pressing healthcare problems of today - how to encourage the patient to comply with early screening."
Under GeneNews’ new business model, diagnostics services are provided by IDL via a flat-fee model, with responsibility for the management of patient billing resting with the client organization within its value-based healthcare solution model.
Q3-2016 Financial Results
Effective July 1, 2015, GeneNews changed its functional and presentation currency to U.S. dollars given the increasing prevalence of U.S. dollar denominated activities of the Company over time. These third quarter 2016 financial results are presented in U.S. dollars and prior year comparable information is restated to reflect the change in presentation currency. Results are reported in accordance with International Financial Reporting Standards.
For the three-month period ended September 30, 2016, GeneNews reported a consolidated net loss of $2.8 million, or $0.04 loss per common share, as compared with a consolidated net loss of $2.2 million, or $0.04 loss per common share, for the three-month period ended September 30, 2015. For the nine-month period ended September 30, 2016, GeneNews reported a consolidated net loss of $7.0 million, or $0.11 loss per common share, as compared with a consolidated net loss of $4.5 million or $0.11 loss per common share, for the nine-month period ended September 30, 2015.
The Company had approximately $0.1 million in cash and cash equivalents as of September 30, 2016.
“While our turnaround is not yet reflected in our financial results, with a strong partner in JTS helping to drive business development activities, and a key new customer in NueHealth kickstarting our new population health model, we feel very strongly about our prospects for achieving profitable growth.”
The Company's financial statements and management's discussion and analysis are available on www.sedar.com.
About GeneNews
GeneNews is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. Our mission is to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical intelligence and actionable information to improve health out-comes through the early diagnosis of disease. Our Richmond, Virginia-based Innovative Diagnostics Laboratory clinical reference lab specializes in traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient populations. Currently, IDL offers risk assessment blood tests for the three most prevalent cancer types - colon, lung and prostate. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews can be found at www.GeneNews.com.
Forward-Looking Statements
This press release contains forward-looking statements identified by words such as “expects”, “will” and similar expressions, which reflect the Company's current expectations regarding future events, including the launch of ColonSentry® test across the United States and the assembling of a robust menu of other advanced cancer tests to be offered by IDL. The forward-looking statements involve risks and uncertainties, including market reaction to the launch of the ColonSentry® test into new regions, that could cause the Company’s actual events to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.