Genetic Technologies Announces Global Launch of geneType™ on Wholly Owned EasyDNA platform

Rhea-AI Summary

Genetic Technologies (NASDAQ: GENE) has announced the global launch of its geneType™ Risk Assessment portfolio on the wholly owned EasyDNA platform, operating in 42 countries. This expansion is expected to significantly boost the company's annual revenues of A$7.5m, with a potential gross margin exceeding 70%. The move, combined with structural changes, aims to reduce monthly cash burn from A$800k to under A$200k, driving GENE towards profitability.

The company has developed a streamlined online process for clinicians and consumers, partnering with Nest Genomics, DNA Nexus, DNA Visit, Gene By Gene, and Fabric Genomics. This telehealth-enabled access to clinical testing aligns with GENE's mission to transform personalized healthcare. The geneType™ consumer-initiated pipeline on EasyDNA is expected to increase product visibility while maintaining clinical oversight.

Positive

• Potential significant expansion of annual revenues beyond current A$7.5m
• Expected gross margin of over 70% on EasyDNA platform sales
• Reduction in monthly cash burn from A$800k to under A$200k
• Global expansion to 42 countries through EasyDNA platform
• Streamlined online process for clinicians and consumers
• Partnerships with key genomics companies for telehealth-enabled access

Negative

• Current annual revenues of only A$7.5m indicate a small market presence
• Previous high monthly cash burn of A$800k suggests financial challenges

Insights

Financial Analyst

The global launch of geneType™ on EasyDNA's platform marks a significant strategic move for Genetic Technologies. This expansion has the potential to substantially increase the company's annual revenue beyond its current A$7.5 million. The company's focus on profitability is evident, with a projected reduction in monthly cash burn from A$800,000 to under A$200,000.

The gross margin of over 70% on this channel is particularly noteworthy, indicating strong profit potential. The company's streamlined operational workflow and partnerships with key players in the genomics industry suggest a well-thought-out strategy for scaling. However, investors should closely monitor the execution of this global rollout and its impact on the company's financial performance in the coming quarters.

Medical Research Analyst

Genetic Technologies' geneType™ Risk Assessment portfolio represents a significant advancement in personalized healthcare. By combining genetic and clinical risk factors, it offers a comprehensive view of an individual's disease risk. The integration with telehealth services and partnerships with companies like Nest Genomics for user-friendly interfaces demonstrate a focus on accessibility and patient engagement.

The company's patent portfolio, backed by a $50 million investment, creates a strong competitive advantage in a rapidly growing market. The use of cloud-based algorithms for data analysis, while maintaining local compliance, shows adaptability to different regulatory environments. This approach could be important for successful global expansion, particularly in markets with stringent data protection laws.

Market Research Analyst

The global launch of geneType™ on the EasyDNA platform, which operates in 42 countries, presents a significant market expansion opportunity for Genetic Technologies. The company's focus on English-language markets initially is a prudent approach, allowing for targeted marketing and easier adaptation of their user interface.

The UK market, in particular, shows promise due to the alignment with the UK Biobank data used in developing geneType™. The company's multi-channel strategy, including influencer campaigns and partnerships with healthcare providers, demonstrates a comprehensive approach to market penetration. However, the success of this launch will depend on consumer acceptance of genetic testing and the company's ability to differentiate itself in an increasingly competitive market for personalized health products.

CHARLOTTE, N.C., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE, “Company”, “GENE”), a global leader in genomics-based tests in health, wellness and serious disease and the parent company of geneType™, is pleased to announce the global launch of the geneType™ Risk Assessment portfolio on our wholly owned EasyDNA platform currently selling in 42 countries, setting the stage for the potential significant expansion of the Company’s current A$7.5m annual revenues.

This expansion allows the Company to promote and sell its most powerful geneType™ innovation on its most profitable channel to realise more than 70% gross margin. This key step change in conjunction with the Company’s structural reset will reduce cash burn to under A$200k per month from the previous A$800k, driving the Company towards its profitability target.

The availability of geneType™ on EasyDNA’s consumer platform will accelerate global access. In the US, building on the successful influencer campaigns and Stayhealthy^® initiatives, the Company believes this is the right time to add geneType™ to the EasyDNA marketplace. The Company has built a streamlined online process for both clinicians and consumers with its partners, Nest Genomics, DNA Nexus, DNA Visit, Gene By Gene and Fabric Genomics.

Aligned in GENE’s mission to transform the approach to population healthcare on a personalised basis, these partnerships support a telehealth-enabled access to clinical testing. The placement of the geneType™ consumer-initiated pipeline on the EasyDNA platform will increase the visibility and reach of the product line, while maintaining the required clinical oversight.

This pipeline enables a uniform operational workflow regardless of specimen origin. All laboratory processing of samples will be carried out through GENE’s laboratory partner Gene By Gene. Data analysis, a critical element of GENE’s intellectual property and accreditation status, will remain in our Australian-based laboratory utilizing the Company’s cloud-based algorithms allowing GENE to process data in local environments according to local data regulations by country.

The new initiative, launched in July, is designed to streamline completion of the clinical questionnaire and the communication of results. GENE has implemented a “user-friendly” consumer interface with Nest Genomics. Nest Genomics are experts in the field of genetic-based, patient-facing communication enabling GENE to harness their ability to support the post-test continuum of care. GENE has not only built a test that empowers consumers to understand their risk of serious disease but has built a pipeline that enables consumers to act on that disease risk by facilitating communication with their healthcare providers. This pipeline will now be made available on the EasyDNA platform for increased consumer and practitioner access.

The UK market has demonstrated a proven appetite and strong interest in genetic testing. GENE believes this initiative will resonate well in this market given much of the data that drove the initial development of geneType™ is based on the unique UK biobank. In Australia, as in the US, tests will be available via the EasyDNA platform and local medical providers using telehealth appointments and in-person engagement with consumers.

The combination of genetics and clinical risk covers both nature and nurture and provides a truly comprehensive view of an individual’s personal risk of serious disease. The Company’s geneType patent portfolio, with over $50m invested to date, creates a moat in these areas as the market is expected to grow exponentially in the near term.

The EasyDNA business, founded some 17 years ago, is a leading name in the consumer health and wellness markets. Its product range includes paternity testing, animal health, general consumer health and wellness across over 42 countries with the initial focus on English language markets.

Authorised for release by the Board of Directors.

For inquiries, contact:
Peter Rubinstein
E: investors@genetype.com

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. GTG offers cancer predictive testing and assessment tools to help physicians to improve health outcomes for people around the world. The company has a proprietary risk stratification platform that has been developed over the past decade and integrates clinical and genetic risk to deliver actionable outcomes to physicians and individuals. Leading the world in risk prediction in oncology, cardiovascular and metabolic diseases, Genetic Technologies continues to develop risk assessment products. For more information, please visit www.genetype.com

About EasyDNA

EasyDNA is an online provider of genetic testing services established in 2007 and developed into an online network of over 70 websites in over 42 countries. EasyDNA’s network of online retail sales platforms offers fast and affordable home DNA testing that is reliable and confidential. They also offer a number of lifestyle and health and wellbeing tests, and animal testing relating to allergies and tolerances. EasyDNA is a pioneering provider of genetic testing services, dedicated to delivering accurate and confidential results to individuals and organizations worldwide.

Forward Looking Statements

This announcement may contain forward-looking statements about the Company's expectations, beliefs or intentions regarding, among other things, statements regarding the expected use of proceeds. In addition, from time to time, the Company or its representatives have made or may make forward-looking statements, orally or in writing. Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect," "intend," "plan," "may," "should" or "anticipate" or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by the Company with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of the Company's authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. As forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause the Company's actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause the Company's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements as detailed in the Company's filings with the Securities and Exchange Commission and in its periodic filings with the ASX in Australia and the risks and risk factors included therein. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. The Company does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

FAQ

What is the expected impact of launching geneType™ on EasyDNA for Genetic Technologies (NASDAQ: GENE)?

The launch is expected to significantly expand GENE's annual revenues beyond the current A$7.5m, with a potential gross margin exceeding 70% on EasyDNA platform sales. It also aims to reduce monthly cash burn from A$800k to under A$200k, driving the company towards profitability.

How many countries will geneType™ be available in through the EasyDNA platform?

geneType™ will be available in 42 countries through the EasyDNA platform, which Genetic Technologies (NASDAQ: GENE) wholly owns.

What partnerships has Genetic Technologies (NASDAQ: GENE) formed for the geneType™ launch?

GENE has partnered with Nest Genomics, DNA Nexus, DNA Visit, Gene By Gene, and Fabric Genomics to create a streamlined online process for clinicians and consumers, supporting telehealth-enabled access to clinical testing.

How will the geneType™ test processing be handled for Genetic Technologies (NASDAQ: GENE)?

Laboratory processing of samples will be carried out through GENE's partner Gene By Gene, while data analysis will remain in GENE's Australian-based laboratory using cloud-based algorithms to comply with local data regulations.