IRVINE, Calif. & LIEGE, Belgium--(BUSINESS WIRE)-- Regulatory News:
MDxHealth SA (NYSE Euronext: MDXH), a leading molecular diagnostics company in the field of personalized medicine, today issued its business update for the third quarter and for the nine months ended September 30, 2011.
September 30, 2011 Highlights:
- Financial discipline continued to pay-off: cash burn (excluding the funds provided by the private placement of April 2011) and net loss were reduced by 25% and 12% in the first 9 months of 2011, respectively, compared to the same period in 2010
- MDxHealth established its own US CLIA lab in Irvine, California to prepare for projected sales of its Prostate ConfirmMDx test nationwide in the US in H1 2012
- New study published in the Journal of Clinical Oncology confirmed the potential of the company’s MGMT test for brain cancer treatment as a companion diagnostic
- Partner Exact Sciences Corp. (Nasdaq: EXAS) initiated a large pivotal trial for a colon cancer test using epigenetic biomarkers and technology in-licensed from MDxHealth
"We continued to focus in this quarter on the validation of our prostate cancer test. The establishment of our CLIA lab in Irvine, California, and the building of commercial operations in the United States are steps taken in anticipation of the planned launch next year of our important prostate cancer confirmation test,” said Dr. Jan Groen, CEO of MDxHealth. “The decrease in non-recurring revenues was off-set by the cost savings made through the reduction in early-stage research outlined in our new strategic plan earlier this year, and other operating costs.”
Key non-audited financials, as of September 30, 2011
Amounts as at and for the three months endedEuro thousands Sept 30, 2011 Sept 30, 2010 Commercial Revenues 267 451 Total Revenues 378 669 EBITDA (Loss) (1,760) (1,405) EBIT Operating Income (Loss) (1,862) (1,469) Net Profit (Loss) (1,879) (1,490) Cash and cash equivalents 12,916 11,356
Amounts as at and for the nine months endedEuro thousands Sept. 30, 2011 Sept 30, 2010 Commercial Revenues 1,086 1,139 Total Revenues 1,785 1,927 EBITDA Income (Loss) (5,444) (6,469) EBIT Operating Income (Loss) (5,713) (6,641) Net Profit (Loss) (5,692) (6,486) Cash and cash equivalents 12,916 11,356
For the 9 months ended September 30, 2011:
- Total revenues decreased by 7%, due to a decrease in one-time commercial deal fees and to an 11% decrease in grant revenues. The company has chosen to reduce its use of grants for early-stage research and instead focus on the development of products
- Net results improved by approximately 12% primarily due to a reduction of early-stage research projects and other operating costs
Outlook for Fourth Quarter and FY 2011
In Q4 2011, we anticipate the monthly costs and cash burn to slightly increase up to an average of 25% compared to earlier quarters of 2011 as the company prepares its US CLIA lab for the commercial launch of its first test, for prostate cancer, in H1 2012. Revenues are only expected to increase once this first test is launched in 2012. Overall costs are expected to be lower in 2011 than in 2010. We anticipate the cash burn for 2011 to be lower than that in 2010.
MDxHealth is a leading molecular diagnostics company that develops and commercializes oncology-based molecular diagnostic testing for personalized medicine. The company’s tests are based on proprietary gene methylation technology and assist physicians with the diagnosis of cancer, prognosis of recurrence risk, and prediction of response to a specific therapy. For more information visit MDxHealth website at www.mdxhealth.com.
MDxHealth to present at the Biotech Showcase in San Francisco, January 9-11, 2012
MDxHealth will present at the Biotech Showcase in San Francisco in January. Dr Jan Groen, CEO, will make a formal presentation on the Company at the Parc 55 Wyndham San Francisco – Union Square.
This press release contains forward-looking statements and estimates with respect to the anticipated future performance of MDxHealth and the market in which it operates. Such statements and estimates are based on assumptions and assessments of known and unknown risks, uncertainties and other factors, which were deemed reasonable but may not prove to be correct. Actual events are difficult to predict, may depend upon factors that are beyond the Company’s control, and may turn out to be materially different. MDxHealth expressly disclaims any obligation to update any such forward-looking statements in this release to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based unless required by law or regulation.
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INDUSTRY KEYWORDS: Health Medical Devices Oncology