GeneNews Announces Strategic Restructuring
TORONTO, Aug. 20, 2013 (GLOBE NEWSWIRE) -- GeneNews Limited (TSX:GEN) ("GeneNews" or the "Company") today announced a strategic restructuring, including senior management changes and staff reductions, designed to further position its recently formed joint venture, Innovative Diagnostic Laboratory LLP ("IDL"), to become a leader in molecular diagnostics and personalized medicine, with a primary focus on cancer-related indications.
GeneNews currently expects to launch its groundbreaking ColonSentry® test into regions of the U.S. beyond New York and New Jersey, through IDL, during the third and fourth quarters. The Company has also begun the work of assembling a robust menu of other advanced cancer tests to be offered by IDL. GeneNews has initiated the strategic restructuring both to sharpen its focus on commercialization and to improve its overall cost structure, extending the Company's cash runway so that it adequately supports IDL's commercial success.
With many of the necessary preparations for the IDL launch now complete, and in connection with the restructuring, GeneNews announced the departure of Gailina J. Liew, its President and Chief Operating Officer. Ms. Liew has also resigned from the Company's Board of Directors.
GeneNews' Executive Chairman, James R. Howard-Tripp, commented, "Gailina's tenure has resulted in many achievements for GeneNews and the Board is grateful for her contributions and years of service. We wish her all success in her future endeavors."
GeneNews also announced that it expects to reduce staffing levels by approximately 60% between today and November 30, 2013. The Company noted that the planned staff reductions will be focused on reducing its internal effort behind pure research, while maintaining its scientific competence and enhancing support for its business development, commercialization and regulatory functions.
With respect to the staff reductions, Mr. Howard-Tripp said, "As we enter this very important stage of GeneNews' commercial development, we need to have an organization that is structured to meet the tasks of product launch, as well as new product acquisition and development. We have taken this difficult step now to restructure the company and reduce spending in order to extend our existing cash runway so that we may continue to focus on helping IDL reach its full potential. I thank our departing employees for their loyalty and dedication, and wish them all the best as they pursue their personal and professional goals."
GeneNews is a molecular diagnostics company focused on developing and commercializing proprietary blood-based diagnostic tests through the application of functional genomics to enable early diagnosis and personalized health management. The Company has developed a patented core platform technology, the Sentinel Principle®, which has the power to detect and stage a range of diseases or medical conditions from a simple blood sample. GeneNews has applied the Sentinel Principle® in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' lead product, ColonSentry®, is the world's first blood test to assess an individual's current risk for colorectal cancer. For more information on GeneNews and ColonSentry®, go to www.GeneNews.com or www.ColonSentry.com.
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 into regions of the U.S. beyond New York and New Jersey, the assembling of a robust menu of other advanced cancer tests to be offered by IDL and the ability of the strategic restructuring to sharpen the focus on commercialization and to improve the overall cost structure of the Company. The forward-looking statements involve risks and uncertainties including market reaction to the launch of the ColonSentry® test into new regions and the strategic restructuring changes, 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.
Company Contact: James R. Howard-Tripp Executive Chairman Office: (905) 739-2030 Investor & Media Contact: Stephen Kilmer Kilmer Lucas Inc. Office: (212) 618-6347 Mobile: (905) 906-6908