MELBOURNE, Australia, July 28. Feb. 20, 2022 (GLOBE NEWSWIRE) — Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE, “Company,” “GENE”), a global leader in genomics-based testing for health, wellness and critical illness provides its cash results for the quarter ended June 30, 2022 (Q4 FY22).
- Cash receipts of A$3.5 million, including the R&D tax incentive of A$1.4 million, up 43% from the prior quarter, with cash balances of A$11.7 million Australian dollars as of June 30, 2022
- Client revenue of A$2 million in the quarter (unaudited), up 2.3% from the prior quarter
- Successful acquisition of AffinityDNA providing additional European sales channels
- Completion of the Budget Impact Model (BIM) independently developed by ALVA10, which demonstrated potential savings of US$1.4 billion per year in breast cancer treatment in the United States
- Initiated discussions with domestic payers in the United States for GeneType risk testing
- GeneType Multi-Risk Test Implemented in 24 Clinics, Reinforcing Our GeneType Hub Strategy
- EasyDNA enters the European market with the carriage test and the non-invasive prenatal test (NIPT)
- EasyDNA enters the Indian equine industry and expands its paternity infrastructure
- Successful ARTG notification to TGA for company DIVs for all tests on multi-hazard test
- Dr. Erika Spaeth has presented at two precision medicine conferences in Boston and Santa Clara
- GENE is now the most comprehensive genetic testing portfolio for humans and animals. Beyond our proprietary GeneType PRS tests, our portfolio includes pharmacogenomics, non-invasive prenatal testing (NIPT), carrier screening, oncogenetic diseases and companion animal care.
Reach of GeneType multi-risk test increases in clinics and medical practices
Our team has now started the onboarding process in 24 clinics, a key step in our primary care B2B strategy. Clinics may focus on a single disease or multiple diseases, including breast cancer, colorectal cancer, ovarian cancer, coronary heart disease, prostate cancer and type 2 diabetes.
The geneType Multi-Risk Test provides a comprehensive solution to better understand a patient’s risk of developing one or more of six common critical illnesses before their onset, accounting for more than 50% of annual mortality and morbidity. Extremely important when nearly half of Australians suffer from at least one chronic health condition. BIM has demonstrated that the introduction of geneType will help physicians identify more early-stage cancers and serious diseases leading to better patient outcomes.
Subsequent to quarter end, we announced our partnership with Melbourne-based Siles Health, an active national referral network of over 1,000 general practitioners treating over 15,000 obstetrics and gynecology patients a year.
EasyDNA and AffinityDNA Expand Distribution Channels and Product Offerings to a Larger Market
These strategic acquisitions create cross-selling opportunities between the EasyDNA and AffinityDNA platforms and we now have access to a sales distribution platform such as Amazon.
EasyDNA has also extended the online availability of carriage tests and non-invasive prenatal tests (NIPT) in Europe. EasyDNA also partners with a number of stud farms in India to extend its sireship infrastructure to the equine industry. EasyDNA also recently launched a “best in class” solution for storing DNA samples at the company’s NATA-approved facilities.
Corporate and financial overview
Customer collections for the June quarter totaled A$2.01 million, an increase of 2.3% over the prior quarter. The R&D tax incentive of $1.4 million for fiscal year 2021 was also received during the June quarter.
Cash used in operating activities was A$3.3 million. In addition to the cash receipts detailed above, interest received amounted to A$12,000. Expenses incurred on a cash basis during the quarter included research and development and personnel costs of A$1.4 million associated with the development of the geneType product. Additionally, the Company has incurred AUD$347,000 associated with advertising and marketing, with expenses expected to increase as the Company strengthens its sales and marketing focus on the geneType brand over the coming quarters.
The Company will continue to strategically target its cash and cash equivalents towards additional commercialization initiatives for our Genetype and EasyDNA brands.
Commenting on the outlook for the future, Simon Morriss said: “We are very pleased with the progress made during this quarter in obtaining TGA approvals for the multi-hazard test. We now have three brands, geneType, EasyDNA and AffinityDNA, anchoring future revenue to seize a multi-billion dollar market opportunity with the most comprehensive testing portfolio available for people and animals.
We remain focused on commercialization opportunities, establishing centers of excellence with our geneType hub strategy. Our US plans continue to focus on concierge medicine groups and gaining coverage from the US payment system.
Drive revenue growth by leveraging the EasyDNA and AffinityDNA brands with additional R&D investments to enhance our multi-risk testing offering by continuing to stay at the forefront 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 testing for health, wellness and critical illness through its geneType and EasyDNA brands. GENE offers predictive cancer tests and assessment tools to help physicians 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 risks and providing actionable results to physicians and individuals. World leader in risk prediction in oncological, cardiovascular and metabolic diseases. Genetic Technologies continues to develop a line of risk assessment products. For more information, please visit www.genetype.com