VolitionRx Limited Announces First Quarter 2024 Financial Results and Business Update
VolitionRx (NYSE AMERICAN: VNRX) announced its Q1 2024 financial results and business update on May 13, 2024. Key highlights include $11.8 million in cash and cash equivalents, $170,000 in revenue (a 15% increase YoY), and ongoing cost reduction measures aiming for $10 million in annualized savings. The company is applying for $25 million in non-dilutive grants in the U.S. and $18 million in Europe. VolitionRx aims to achieve cash flow neutrality by 2025 through a mix of funding, revenue growth, and milestone payments. The company is focusing on commercializing its Nu.Q® NETs and Capture-PCR™ technologies, with new clinical data expected by the end of June 2024. A conference call to discuss these results is scheduled for May 14, 2024, at 8:30 a.m. U.S. Eastern Time.
- Cash and cash equivalents totaled $11.8 million as of March 31, 2024.
- Revenue for Q1 2024 was $170,000, a 15% increase year-over-year.
- Cost reduction measures targeting $10 million in annualized savings.
- Applied for $25 million in non-dilutive grants in the U.S. and $18 million in Europe.
- Focus on commercializing Nu.Q® NETs and Capture-PCR™ technologies.
- Expecting significant milestone payments and royalties from licensing intellectual property.
- Revenue growth expected in the second half of 2024 due to recent product launches by Antech Diagnostics and Fujifilm Vet Systems.
- Revenue from Nu.Q® Vet has taken longer to ramp up than anticipated.
- Significant investment has been made with ongoing high expenditures.
- Operating at a loss with the need to reduce expenditures and cash burn.
Insights
VolitionRx Limited reported its financial results for the first quarter of 2024, showcasing several key figures of interest to investors. The company recorded
Cash and cash equivalents stood at
For retail investors, it’s essential to consider whether VolitionRx can achieve its goal of being cash flow neutral by 2025 through a combination of revenue growth, licensing agreements and cost reductions. The progress towards commercialization of their technologies could be a pivotal factor, especially if milestone payments and subsequent royalties materialize as anticipated.
VolitionRx's focus on its Nu.Q® NETs and Capture-PCR™ technologies represents a strategic pivot towards commercializing its epigenetic diagnostic tools. These technologies aim to revolutionize cancer detection and other critical health diagnostics. The anticipated substantial clinical data by the end of June could validate these tools' efficacy and support their market entry.
Understanding these technologies involves recognizing that Nu.Q® NETs is designed for early cancer detection by identifying nucleosomes in the blood, a marker for cancer and other diseases. Capture-PCR™ integrates precision in detecting scarce DNA sequences, potentially offering breakthrough capabilities in diagnosing various conditions. If these technologies prove successful, they could set VolitionRx apart in a competitive diagnostic market, driving significant revenue streams through licensing and milestone payments.
For investors, the key risk lies in the company’s ability to transition from promising clinical data to actual commercialization and market adoption. The timelines and success rates of these milestones will be critical metrics to follow closely.
From a market perspective, VolitionRx's strategy to monetize intellectual property through licensing agreements, similar to its approach with Volition Vet, indicates a potential for steady revenue streams via milestone and royalty payments. The company’s ability to replicate this model in the human diagnostics market could prove lucrative, given the unmet needs in early cancer detection and other epigenetic-based diagnostics.
The mention of partnerships with Antech Diagnostics and Fujifilm Vet Systems is also notable. These partnerships could enhance market penetration for their veterinary products, indirectly benefiting the company's financial health and credibility. Furthermore, the upcoming data publications and product launch timelines will be critical indicators for market acceptance and potential revenue acceleration in the second half of 2024.
For retail investors, observing how well VolitionRx manages its commercialization efforts and partnerships will be essential. Success here could imply a stable and potentially growing revenue base, while delays or failures could impact investor confidence and stock performance.
Conference call to discuss financial and operational results scheduled for
Tuesday, May 14 at 8:30 a.m.
Cameron Reynolds, President and Group Chief Executive Officer of Volition said: "Throughout this quarter we have continued to work on a number of opportunities with the aim of ensuring Volition is cash flow neutral in 2025 with a mix of non-dilutive funding, revenue growth and milestone payments from out licensing, as we already achieved in our Volition Vet subsidiary, and through further cost reduction measures targeting
"We have invested significantly over recent years to build out our product pillars and to ensure we have robust scientific and clinical evidence to support our potential breakthrough technologies. Following our anticipated receipt, by the end of June, of a substantial amount of new clinical data, we intend to have a laser focus on commercializing these technologies.
"Our strategy is to monetize our intellectual property through licensing or other agreements, similar to our approach with Volition Vet. If successful, we believe that this strategy could provide us with meaningful milestone payments in the next 12 months, followed by ongoing payments and royalties.
"We have had a busy start to 2024 and look forward to delivering on some exciting milestones ahead, in particular publishing new data for Nu.Q® NETs and for our potential breakthrough cancer detection method, Capture-PCR™, later this year. While the revenue ramp from Nu.Q® Vet has taken longer than anticipated, we do expect revenues to accelerate in the second half of 2024 due to the two important recent product launches by Antech Diagnostics and Fujifilm Vet Systems."
Financial Highlights
- Cash and cash equivalents as of March 31, 2024, totaled approximately
$11.8 million - Recorded approximately
$170,000 15% over the prior year. - Cost reduction measures underway with a target of
$10 million - Applied/or in the process of applying for
$25 million $18 million
Event: VolitionRx Limited First Quarter 2024 Earnings and Business Update Conference Call
Date: Tuesday, May 14, 2024
Time: 8:30 a.m.
Toll/International: 1-201-493-6779
Conference ID: 13746549
Louise Batchelor, Group Chief Marketing & Communications Officer will host the call along with Cameron Reynolds, President and Group Chief Executive Officer of Volition, Terig Hughes, Group Chief Financial Officer, Dr. Andrew Retter, Chief Medical Officer and Gael Forterre, Chief Commercial Officer. The call will provide an update on important events which have taken place in the first quarter of 2024 and upcoming milestones.
A live audio webcast of the conference call will also be available on the investor relations page of Volition's corporate website at https://ir.volition.com. In addition, a telephone replay of the call will be available until May 28, 2024. The replay dial-in numbers are 1-844-512-2921 (toll-free) in the
About Volition
Volition is a multi-national epigenetics company focused on advancing the science of epigenetics. Volition is dedicated to saving lives and improving outcomes for people and animals with life-altering diseases through earlier detection, as well as disease and treatment monitoring.
Through its subsidiaries, Volition is developing and commercializing simple, easy to use, cost-effective blood tests to help diagnose and monitor a range of diseases, including some cancers and diseases associated with NETosis, such as sepsis. Early diagnosis and monitoring have the potential not only to prolong the life of patients, but also improve their quality of life.
Volition's research and development activities are centered in
The contents found at Volition's website address are not incorporated by reference into this document and should not be considered part of this document. Such website address is included in this document as an inactive textual reference only.
Media Enquiries:
Louise Batchelor/Debra Daglish, Volition, mediarelations@volition.com +44 (0)7557 774620
Safe Harbor Statement
Statements in this press release may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that concern matters that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in the forward-looking statements. Words such as "expects," "anticipates," "intends," "plans," "aims," "targets," "believes," "seeks," "estimates," "optimizing," "potential," "goal," "suggests," "could," "would," "should," "may," "will" and similar expressions identify forward-looking statements. These forward-looking statements relate to, among other topics, Volition's expectations related to revenue opportunities and growth, the timing, completion, success and delivery of data from clinical studies, the timing of publications, the effectiveness of Volition's cost reduction measures, the effectiveness and availability of Volition's blood-based diagnostic, prognostic and disease monitoring tests, Volition's ability to develop and successfully commercialize such test platforms for early detection of cancer and other diseases as well as serving as a diagnostic, prognostic or disease monitoring tools for such diseases, and Volition's success in securing licensing and/or distribution agreements with third parties for its products. Volition's actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties, including, without limitation, results of studies testing the efficacy of its tests. For instance, if Volition fails to develop and commercialize diagnostic, prognostic or disease monitoring products, it may be unable to execute its plan of operations. Other risks and uncertainties include Volition's failure to obtain necessary regulatory clearances or approvals to distribute and market future products; a failure by the marketplace to accept the products in Volition's development pipeline or any other diagnostic, prognostic or disease monitoring products Volition might develop; Volition's failure to secure adequate intellectual property protection; Volition will face fierce competition and Volition's intended products may become obsolete due to the highly competitive nature of the diagnostics and disease monitoring market and its rapid technological change; downturns in domestic and foreign economies; and other risks, including those identified in Volition's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as other documents that Volition files with the Securities and Exchange Commission. These statements are based on current expectations, estimates and projections about Volition's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are made as of the date of this release, and, except as required by law, Volition does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.
Nucleosomics™, Capture-PCR™ and Nu.Q® and their respective logos are trademarks and/or service marks of VolitionRx Limited and its subsidiaries. All other trademarks, service marks and trade names referred to in this press release are the property of their respective owners. Additionally, unless otherwise specified, all references to "$" refer to the legal currency of
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SOURCE VolitionRx Limited
FAQ
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