- Commercialization Progress Continues with
Global Pharmaceutical Companies -
TORONTO,
August 6, 2014 /PRNewswire/
- SQI Diagnostics Inc. (TSX-V: SQD), a life sciences
company that develops and commercializes proprietary technologies
and products for advanced microarray diagnostics, today reported
fiscal and operational results for its fiscal third quarter, ended
June 30th, 2014.
"During the third quarter we announced our fifth
customer for our custom multiplex antibody assays, one of the ten
largest pharmaceutical companies in the world. We also reported our
second consecutive quarter of revenue from our Pharma customer base
since we started commercialization," said Andrew Morris, CEO of SQI Diagnostics.
"Subsequent to the end of the quarter, we announced the appointment
of Dr. Allan Pronovost, a
thirty-year industry veteran based in San
Diego, as a Board member and strategic advisor to the
Company. As we gain increasing traction with Pharma customers and
recognition grows for the strengths of our technology, we are
focused entirely on advancing our US commercialization
strategy."
During the quarter ended June 30, 2014 the Company entered into an
agreement with its fifth Pharma customer to develop and validate
two custom multiplex anti-drug-antibody ("ADA") assays. Subsequent
to the end of the quarter, SQI provided the customer with initial
data from the prototype development work, which management believes
materially met and in certain important performance criteria
exceeded the customer's expectations. Further prototype development
and validation work will continue over the coming months as
business discussions also take place to explore additional projects
from this customer on new, higher volume screening assays not yet
in the Company's product line-up.
SQI also continued to generate revenue from
prototype assays development and validation work being undertaken
with its other Pharma customers. While the generation of
commercial revenue has been somewhat slower with our Pharma
customers than expected, management believes progress in the Pharma
business to be very good and that delays in the projects have been
largely due to issues outside of SQI's control or to expanded
customer requests viewed as potentially very positive and to which
the Company has been responding with its limited resources.
Management expects these external issues to resolve by the end of
the next quarter.
In addition, the Company continued to advance its
pipeline of IVD assays, and is currently focused on securing
regulatory clearance for its multiplexed Ig_plex® Celiac DGP Panel
in additional jurisdictions beyond Canada, including the US.
Financial Results
During the fiscal
third quarter, SQI recorded its second consecutive quarter of
revenue resulting from product sales to drug development companies.
Revenue for the quarter ended June 30,
2014 was $32,000 and for the
nine months ended June 30, 2014 was
$52,000. The Company reported no
revenues in either the quarter or the year to date in 2013.
For the quarter-ended June
30, 2014, the Company recorded a net loss of $1,449,000 ($0.03
per share) compared to a net loss of $1,740,000 ($0.04
per share) for the quarter-ended June 30,
2013. The net loss for the nine months ended June 30, 2014 was $3,914,000 ($0.08
per share) compared to a net loss of $4,654,000 ($0.11
per share) for the same period last year. The Company implemented
cost cutting measures in the second quarter of fiscal 2014 and
finalized validation and verification work on the Celiac DGP panel
in January of 2014, contributing to the decrease in net loss over
the comparative periods.
R&D expenditures for the three months ended
June 30, 2014 were $779,000 compared to $895,000 for the same period last year. R&D
expenditures, excluding amortization and stock-based compensation,
for the nine months ended June 30,
2014 were $1,957,000 compared
to $2,228,000 for the same period
last year. The Company temporarily reduced several R&D
positions in fiscal Q2, 2014 to manage expenses.
Corporate and general expenses, excluding
stock-based compensation, were $248,000 for the three months ended June 30, 2014 compared to $308,000 for the three months ended June 30, 2013. Corporate and general expenses,
excluding stock-based compensation, were $728,000 for the nine months ended June 30, 2014 compared to $962,000 for the nine months ended June 30, 2013. The decreases are due to general
cost containment efforts and staffing reductions.
Sales and marketing expenses primarily related to
sales and marketing consultant fees and travel, and excluding
stock-based compensation, totaled $134,000 for the three months ended June 30, 2014 compared to $88,000 for the three months ended June 30, 2013. Sales and marketing expenses,
excluding stock based compensation, totaled $355,000 for the nine months ended June 30, 2014 compared to $299,000 for the nine months ended June 30, 2013. Sales and marketing expenses are
higher for the three and nine month periods ended June 30, 2014 as compared to the same periods in
the previous year primarily due to sales incentives provided to
sales and marketing staff as a result of new customer
contracts.
On April 10, 2014
the Company completed a public offering of 8,400,000 units of the
Company at a price of $0.50 per unit
for gross proceeds of $4,200,000.
At June 30, 2014,
current assets were $3,301,000
compared to $1,724,000 at
September 30, 2013. As at
June 30, 2014 the Company had a
$2,932,000 working capital surplus
compared to a surplus of $1,270,000
at September 30, 2013.
As a result of additional cost reductions the
Company has funds sufficient funds to meet its cash requirements
for approximately the next seven months. The Company will continue
to review its forecast revenue and expenditures, capital needs and
financing options.
About SQI Diagnostics
SQI Diagnostics
is a life sciences and diagnostics company that develops and
commercializes proprietary technologies and products for advanced
microarray diagnostics. The Company's proprietary microarray tests
and fully-automated systems are designed to simplify protein and
antibody testing workflow, increase throughput, reduce costs and
provide excellent data quality. For more information, please visit
www.sqidiagnostics.com.
Forward-looking Information
This
news release contains certain forward-looking statements,
including, without limitation, statements containing the words
"will", "expects", "intends" and other similar expressions which
constitute "forward-looking information" within the meaning of
applicable securities laws. Forward-looking statements reflect the
Company's current expectation and assumptions, and are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from those anticipated. These forward-looking
statements involve risks and uncertainties including, but not
limited to risks related to the failure to obtain necessary
regulatory approvals, general economic and market segment
conditions, and international risk and currency exchange,
agreements and future agreements to sell our products, the success
of our Diagnostic Tools and Services business and our intent to
build near-term revenue streams from this business, the successful
regulatory filing and receipt of regulatory approvals for our later
stage quantitative diagnostic kits, the acceleration of our revenue
ramp, general economic and market segment conditions, competitor
activity, technology changes and regulatory approvals. Such
statements reflect the current views of the Company with respect to
future events and are subject to certain risks and uncertainties
and other risks detailed from time-to-time in the Company's ongoing
filings with the securities regulatory authorities, which filings
can be found at www.sedar.com. Actual results, events, and
performance may differ materially. Readers are cautioned not to
place undue reliance on these forward-looking statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements either as a result of new information,
future events or otherwise, except as required by applicable
laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE SQI Diagnostics Inc.