MELBOURNE, Australia, July 28, 2022 (GLOBE NEWSWIRE) -- Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE, “Company”, “GENE”), a global leader in genomics-based tests in health, wellness and serious disease provides its cashflow results for the quarter ended June 30, 2022 (Q4 FY22).
Financial Highlights:
- Cash receipts of A$3.5 million, including the R&D tax incentive receipt of A$1.4 million up 43% from prior quarter, with cash balances of A$11.7 million as at June 30, 2022
- Revenue from customers of A$2 million in the quarter (unaudited), up 2.3% from prior quarter
Commercial Highlights:
- Successful acquisition of AffinityDNA providing additional European sales channels
- Completion of the independently developed Budget Impact Model (BIM) by ALVA10 which demonstrated potential savings US$1.4b annually in the treatment of breast Cancer in the US
- Initiated discussions with National payers in the US for GeneType risk tests
- GeneType Multi-Risk Test is implemented in 24 clinics building our geneType hub strategy
- EasyDNA enters the Europe market with carrier testing and Non-Invasive Prenatal Test (NIPT)
- EasyDNA enter India’s equine industry and broadening its paternity infrastructure
- Successful ARTG notification to TGA for company IVDs for all test on the Multi-Risk test
- Dr Erika Spaeth presented at two Precision medicine conferences in Boston and Santa Clara
- GENE now most comprehensive genetic test portfolio for humans and animals. Beyond our proprietary GeneType PRS tests, our portfolio includes pharmacogenomics, Non-Invasive Prenatal Testing (NIPT), carrier screen testing, oncogenetic diseases, and pet care
GeneType Multi-Risk Test outreach increasing in clinics and medical practices
Our team has now initiated the onboarding process in 24 clinics, a key step in our primary care B2B strategy. Clinics will be able to focus on either single disease or multiple diseases which will include breast cancer, colorectal cancer, ovarian cancer, coronary artery disease, prostate cancer and type 2 diabetes.
The geneType Multi Risk Test provides a comprehensive solution enabling a better understanding of a patient’s risk of developing one or more of six common serious diseases before onset, accounting for more than 50% of annual mortalities and morbidities. Extremely important when almost half Australians are suffering from at least one chronic health condition. The BIM demonstrated introducing geneType will assist physicians to identify more early-stage cancers and serious disease leading to better patient outcomes.
Post quarter closing, we announced partnering with Melbourne based Siles Health, a leading Obstetrics and Gynaecology practice active referral national network of more than 1,000 GPs treating more than 15,000 patients annually.
EasyDNA and AffinityDNA widening distribution channels and product offerings to a larger market
These strategic acquisitions create cross-selling opportunities between EasyDNA and AffinityDNA platforms and we now have access to sales distribution platform such as Amazon.
EasyDNA has also expanded online availability of Carrier Testing and Non-Invasive Prenatal Tests (NIPT) into Europe. EasyDNA is also partnering with a number of stud farms in India to extend its paternity infrastructure into the equine industry. EasyDNA has also recently launched a "best in class" solution to store DNA samples in the Company's NATA approved facility.
Corporate and Financial Overview
Cash receipts from customers for the June quarter totalled A$2.01 million, an increase of 2.3% on the prior quarter. The R&D tax incentive of $1.4 million for the 2021 financial year was also received in the June quarter.
Cash outflows used in operating activities were A$3.3 million. In addition to cash receipts detailed above interest received was A$12k. Expenses incurred on a cash basis during the quarter included research and development and staff costs of A$1.4 million associated with the geneType product development. Additionally, the Company incurred A$347k associated with advertising and marketing with expenditure expected to increase as the Company enhances its sales and marketing focus on the geneType brand in future quarters.
The Company will continue to strategically target our cash and cash equivalents towards incremental commercialisation initiatives for both our Genetype and EasyDNA brands.
Outlook
Commenting on the forward outlook, Simon Morriss stated “We are very pleased with the progress made over this quarter in achieving TGA approvals for the Multi-Risk Test. We now have three brands, geneType, EasyDNA and AffinityDNA anchoring future revenues to seize a multi-Billion-dollar market opportunity with the most comprehensive portfolio of testing available for individuals and animals.
Our focus remains on the commercialisation opportunities, establishing the centres of excellence with our geneType hub strategy. Our US plans continue to be focussed on concierge medicine groups and gaining coverage from the US payer system.
Driving revenue growth by leveraging the EasyDNA and AffinityDNA brands with further investment in R&D to enhance our Multi-Risk Test offering continuing to remain at the cutting edge of genetic testing and preventative health.”
About Genetic Technologies Limited
Genetic Technologies Limited (ASX: GTG; Nasdaq: GENE) is a diversified molecular diagnostics company. A global leader in genomics-based tests in health, wellness and serious disease through its geneType and EasyDNA brands. GENE offers cancer predictive testing and assessment tools to help physicians to improve health outcomes for people around the world. The company’s Polygenic Risk Scores (PRS) platform is a proprietary risk stratification platform developed over the past decade integrating clinical and genetic risk delivering actionable outcomes from physicians and individuals. Leading the world in risk prediction in Oncology, Cardiovascular and Metabolic diseases. Genetic Technologies continues to develop a pipeline of risk assessment products. For more information, please visit www.genetype.com
