Gene achieves key milestones and growth

Rhea-AI Summary

Genetic Technologies Limited (NASDAQ: GENE) reported a solid performance for Q4 FY22, with cash receipts rising by 43% to A$3.5 million, including a R&D tax incentive of A$1.4 million. Customer revenue reached A$2 million, an increase of 2.3% from the previous quarter, and cash reserves were A$11.7 million as of June 30, 2022. The company acquired AffinityDNA, enhancing its European sales channels, and launched discussions with U.S. payers for its geneType risk tests, which now operate in 24 clinics. The outlook remains optimistic, targeting multi-billion-dollar opportunities in genetic testing.

Positive

• Cash receipts increased by 43% to A$3.5 million.
• Revenue from customers rose to A$2 million, up 2.3% from the prior quarter.
• Acquired AffinityDNA to expand European sales channels.
• Launched GeneType tests in 24 clinics, supporting growth strategy.

Negative

• Operating expenses amounted to A$3.3 million, indicating high cost pressures.

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

FAQ

What were Genetic Technologies Limited's cash receipts for Q4 FY22?

The cash receipts for Q4 FY22 were A$3.5 million, a 43% increase from the prior quarter.

What is the revenue from customers for GENE in the quarter?

Genetic Technologies Limited reported customer revenue of A$2 million for Q4 FY22, a 2.3% increase from the previous quarter.

How much cash did GENE have at the end of June 2022?

As of June 30, 2022, Genetic Technologies Limited had cash balances of A$11.7 million.

What strategic acquisition did GENE make recently?

Genetic Technologies Limited successfully acquired AffinityDNA to enhance its sales channels in Europe.

What is the outlook for Genetic Technologies Limited after Q4 FY22?

The outlook remains optimistic, targeting multi-billion-dollar opportunities through its geneType and EasyDNA brands.