Genetic Technologies Rapidly Accelerating Commercialization Plans
Genetic Technologies Limited (NASDAQ: GENE) reported a quarterly revenue of A$99k, significantly up from A$6k in the previous quarter, driven by the launch of its COVID-19 Risk Test. The company also acquired EasyDNA for US$4 million, aiming to enhance its direct-to-consumer offerings across 40 countries. As of June 30, 2021, GTG had a strong cash balance of A$20.8 million. However, net cash used for operations increased to A$2.12 million due to rising R&D and operating expenses.
- Quarterly revenue increased to A$99k from A$6k.
- Launch of COVID-19 Risk Test led to A$95k in quarter revenues.
- Acquisition of EasyDNA for US$4 million expands direct-to-consumer reach.
- A$20.8 million cash balance supports future growth.
- Net cash used for operations rose to A$2.12 million, up from A$1.08 million.
- Operating expenses increased by A$353k, impacting cash flow.
MELBOURNE, Australia, July 26, 2021 (GLOBE NEWSWIRE) -- Genetic Technologies Limited (NASDAQ: GENE, “Company”, “GTG”), a global leader in Genomics based tests in health, wellness and serious disease, is pleased to provide its Quarterly Business Update to the market.
Highlights
- Revenues from customers of A
$99 k in the quarter (unaudited), up from A$6 k in Q3, including receipt of first month IBX sales - Confirmed launch of COVID-19 Risk Test by Infinity Biologix in the US
- Confirmed grant of US Patent No 11,031,098 - ‘Computer Systems and Methods for Genomic Analysis’ (ASX Announcement on 11 June 2021)
- Post quarter end acquisition of EasyDNA for US
$4 million ; strategically, this direct-to-consumer acquisition provides the foundation to grow the portfolio of serious disease tests across well-established websites in 40 countries - Strong cash balance of A
$20.8 million as at 30 June 2021 provides runway to fund commercialization opportunities and continued product development - Net cash used for operations of A
$2.12 million , an increase on the prior quarter (Q3 FY21: A$1.08 million ) due mainly to the increase in R&D and operating expense of A$353 k and receipt in Q3 of the R&D tax incentive receipt for A$763 k - Appointment of Carl Stubbings as Chief Commercial Officer and commencement of Mike Tonroe as Chief Financial Officer
Simon Morriss, CEO of Genetic Technologies, stated, “Genetic Technologies is moving rapidly into the commercialization of its products with the launch of its COVID-19 Risk Test in May and the post quarter end announcement of the acquisition of EasyDNA.”
“This acquisition provides a direct-to-consumer platform and strong alignment with GTG’s planned expansion into health and wellness testing across well-established websites in 40 countries. This alignment was critical to our decision to acquire the brand and assets of EasyDNA,” continued Morriss.
Commercialization Update
Launch of COVID-19 Serious Disease Risk Test
The three-year co-exclusive licence agreement between IBX and GTG was announced on 3 March 2021 for the production, distribution, sales and marketing of GTG’s COVID-19 Risk Test in the US with the product launch at the end of May 2021. Revenues in the quarter from the IBX agreement were A
Commercialization Strategy for Broader Product Portfolio
The Company has previously outlined its key avenues for commercialization which currently include the consumer-initiated online sales and marketing platform (CIT) available in Australia and the US. With the recent inclusion of EasyDNA the Company intends to leverage this direct-to-consumer (DTC) platform to enhance the visibility and awareness of its existing products globally.
Additionally, GTG is engaging in business to business (B2B) sales via medical professionals and now has distribution coverage of the Australian and US markets. The Company is assessing the CE certification requirements for its products and have identified Europe and the UK as the next regions the company intends to enter.
Product Overview and Regulatory Progress
GeneType Comprehensive Risk Assessment Test (Multitest)
GTG’s Polygenic Risk Score (PRS) products under development will ultimately be offered as part of the GeneType Multitest, which will provide risk assessment for greater than
The overall strategy for the Multitest is focused on precise risk assessments for the most common preventable diseases. Future iterations of the test will include the Company’s germline hereditary cancer testing products which are currently under development.
GeneType Breast Cancer and Colorectal Cancer Screening and Germline Testing Platform
GTG continues to progress the development of its Germline Testing division for hereditary testing. The initial BRCA and Lynch Syndrome tests, that align with GTG’s GeneType products in market for Breast Cancer and Colorectal Cancer respectively, are anticipated to launch by the end of CY21. These hereditary tests increase coverage from
The Company continues to engage in discussions with Medicare to enable the Company to secure a rebate for PRS tests conducted. This remains a longer-term objective and is expected to support distribution through the B2B channel.
Predictix by Taliaz
GTG highlighted the Predictix by Taliaz product at the General Practice Conference and Exhibition (GPCE) in Sydney in mid-May 2021 with solid feedback and are progressing discussions on partnerships to advance the distribution and sales of the product in Australia and New Zealand. In addition, the Taliaz product will be incorporated into GTG’s Multitest.
Research and Publications
GTG continues to focus on publications of relevant content for submission to peer-reviewed journals.
The Company confirms the below article, authored by GTG employees, was made available online by Cambridge University Press on 2 July 2021.
‘Development and validation of a clinical and genetic model for predicting risk of severe COVID-19’ authored by Dite, Murphy and Allman;
The Dite, Murphy and Allman article outlines the outcomes from the analysis of an updated dataset of 2,205 cases and 5,416 control patients. The increased sample numbers have enabled separation into test and validation datasets, a key requirement for commercialization.
Post quarter end acquisition of EasyDNA
GTG signed an agreement to acquire the brand and distribution rights for EasyDNA from BelHealth for US
The agreement provides for the acquisition of all brands, websites and reseller agreements associated with EasyDNA. This includes over 70 websites in 40 countries and six brand identities. EasyDNA revenue contributions are strongly weighted to five countries: Australia, UK, France, Canada and the US, where it received
Morriss commented, “We look forward to integrating the EasyDNA team into our business and working closely with them to continue to build upon their existing product portfolio and the brand recognition they have already achieved. EasyDNA is a leader in paternity testing and animal genomics, and their breadth of available products also extends into the important wellness category, providing multiple highly attractive growth opportunities for GTG moving forward.”
GTG will be onboarding EasyDNA’s existing team, retaining the skills and expertise of its employees based in Malta and Australia. This includes the retention of Kevin Camilleri, founder and CEO of EasyDNA, who will be heading up GTG’s Direct to Consumer Division following the completion of the acquisition expected to occur by 31 July 2021.
Corporate Update
The Company has recently appointed Carl Stubbings to the role of Chief Commercial Officer. Carl rounds out the leadership team for GTG with considerable experience commercialising diagnostic products. Based in the USA for 13 years, he served as Senior Vice President for Panbio USA Ltd and Vice-President of Sales and Marketing for Focus Diagnostics, a subsidiary of Quest Diagnostics, one of the world’s largest pathology laboratories. More recently he was Chief Operating Officer of ASX listed BARD1 Life Sciences having successfully facilitated the merger with Sienna Cancer Diagnostics as its CEO and Managing Director.
Investor Webinar
The Company will provide an update on its results and recent acquisition and hold an investor webinar on Tuesday 27 July 2021 at 7:30pm EDT.
To participate on the quarterly investor webinar, please register at:
https://us02web.zoom.us/webinar/register/WN_ntdVwrJPQkeM0XszdzUvXQ
After registering, you will receive a confirmation email containing information about joining the webinar.
| Investor Relations (AUS) | Investor Relations and Media (US) |
| Stephanie Ottens | Dave Gentry |
| Market Eye | 1 800 RED CHIP (733 2447) |
| M: +61 434 405 400 | Cell: 407 491 4498 |
| E: stephanie.ottens@marketeye.com.au | E: dave@redchip.com |
About Genetic Technologies Limited
Genetic Technologies Limited (ASX: GTG; Nasdaq: GENE) is a diversified molecular diagnostics company. GTG offers cancer predictive testing and assessment tools to help physicians proactively manage patient health. The Company’s lead products GeneType for Breast Cancer for non-hereditary breast cancer and GeneType for Colorectal Cancer are clinically validated risk assessment tests and are first in class. Genetic Technologies is developing a pipeline of risk assessment products.
For more information, please visit www.gtglabs.com
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1 Source: “An integrated clinical and genetic model for predicting risk of severe COVID-19” available at: https://www.medrxiv.org/content/10.1101/2020.09.30.20204453v1.full.pdf
FAQ
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