Mr. James Howard-Tripp
STAGEZERO LIFE SCIENCES ANNOUNCES Q2 2019 PROGRESS UPDATE
Stagezero Life Sciences Ltd. has released its operational results for the three-month period ended June 30, 2019, and has provided a progress update on its business. All amounts are expressed in United States dollars unless otherwise stated and results are reported in accordance with international financial reporting standards.
Stagezero achieved the following milestones in the second quarter.
The company has:
- Officially launched Stagezero Life Sciences to strengthen its brand and better reflect the corporate mission to find cancer in the earliest possible stages;
- Closed a $3.7-million private placement to expand its commercial footprint in both the United States and abroad;
- Reached key operational milestones in preparing for the clinical validation of Aristotle, the company's next generation test for detecting multiple, discrete cancers from a single blood draw;
- Signed a global distribution contract with Oncore Pharma, which aims to deploy a total of 1.75 million ColonSentry tests over the next five years;
- Expanded its United States sales force through a contract with Coastal Medical, a regional sales organization specializing in selling advanced diagnostic testing solutions to physician practices and health systems throughout the southeast;
- Actively engaged with a large health system to improve patient compliance with cancer screening;
- Processed approximately 1,600 tests during the quarter.
The company has initiated a contract with a large health system to improve patient compliance with cancer screening. The details of this contract are confidential between the parties and cannot be disclosed at this time.
"We have been very open about the fact that we are in discussion with several large health groups and have been anticipating engaging with one or more of them to improve patient compliance with screening for cancer. We are extremely pleased with the direction this relationship has taken and look forward to being able to share the results of the initiative when it is suitable for all parties involved," said James Howard-Tripp, chairman and chief executive officer of Stagezero Life Sciences.
"This has been a pivotal quarter and we have reached multiple, operational milestones that will have a very positive impact on our growth moving forward," added Howard-Tripp. "We successfully launched Stagezero Life Sciences to better represent our mission and strengthen our commitment to the validation of Aristotle, our next-generation, multipanel test for the detection of 10 discrete cancers from a single sample of blood. And, during this very busy time, we also signed a large global distribution agreement, launched a new sales force in the southeast, continued to build our telehealth infrastructure as we prepare to offer all four of our tests and ensured adequate funding by closing a $3.7-million private placement.
Stagezero is progressing down the path of enrolling large employers and working with the firefighter population to improve early cancer detection to improve survival and mitigate catastrophic cancer claims. "Cancer is the No. 1 catastrophic cancer claim for employers and we are especially suited to help companies and the health plans that serve them find cancer early before costs soar," said Mr. Howard-Tripp.
With the financing completed last week, the company will now put its focus on reaching profitability through:
- The expansion of the telehealth initiative through increasing digital advertising, adding more tests to the telehealth offering and improving the on-line user experience through new technologies;
- Supporting Oncore Pharma in its efforts for global distribution of the ColonSentry test;
- Supporting Coastal Medical as it grows the company's business for all tests in the southeastern United States;
- Retaining an independent research firm to help it formulate future financial strategies;
- Expanding test volume through its work with independent practices, employers, farmers and first responders;
- Launching an investor relations campaign to attract new investors, including the addition of monthly newsletter.
"We have accomplished an amazing amount in a short period of time. The key initiatives we have put in place this quarter will bear fruit as we move out through the next few quarters and should open the doors to a very bright future."
Q2 2019 financial results
For the three-month period ended June 30, 2019, the company reported a consolidated net loss of $500,000, or $0 loss per common share, as compared with a consolidated net loss of $2.6-million, or two-cent loss per common share, for the same period in 2018. The $2.1-million decreased loss results from the $1.2-million impact of the revaluation of warrants, the $400,000 decrease in general and administrative costs, and the $500,000 decrease in finance costs with a small change in cost of goods sold.
For the six-month period ended June 30, 2019, the company reported a consolidated net loss of $6.5-million, or four-cent loss per common share, as compared with a consolidated net loss of $3.2-million, or two-cent loss per common share, for the same period in 2018. The $3.3-million increased loss results from the $3.4-million impact of the revaluation of warrants, the $500,000 increase in general and administrative costs offset by $100,000 decrease in finance costs, $400,000 decrease in the change in fair value of conversion liabilities, and a decrease of $100,000 from a combination of a small increase in revenues and a small decrease in cost of goods sold.
Test volume at approximately 1,600 tests showed an increase over Q1 and is showing growth in Q2 as the new programs are launched.
The company's financial statements and management's discussion and analysis are available on SEDAR.
About Stagezero Life Sciences Ltd.
Stagezero Life Sciences is dedicated to the early detection of cancer and multiple disease states through whole blood. Aristotle, the company's next-generation test, is a panel for simultaneously screening for 10 cancers from a single sample of blood with high sensitivity and specificity for each cancer. Aristotle is built on the company's proven and proprietary sentinel principle technology platform which has been validated on 10,000 patients and used to develop the first liquid biopsy for colorectal cancer, with further validation currently under way.
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