REPORT FOR FIRST QUARTER 2010
Growing market attention; Molecular diagnostics and biomarkers for Pharma
The first quarter report for 2010 was approved by the Board of Directors on 19 May 2010. Please find the report and the investor presentation attached. Highlights from the report: •Distribution agreement with Ferrer on ADtect® •First clinic to use BCtect® in UK presented •Improved clinical documentation supporting higher accuracy of ADtect® •Share issue of NOK 9.6 million •More clinics in UK and Finland promote BCtect® In the quarter DiaGenic and Ferrer inCode signed a distribution agreement for the blood-based ADtect® test for early diagnosis of Alzheimer’s. The agreement gives Ferrer inCode, the biotech subsidiary of Grupo Ferrer Internacional, the exclusive right to sell and market ADtect® initially in Germany, Belgium, the Netherlands, Luxemburg, France, Italy, Spain and Portugal followed by Latin America. Quest Diagnostics, the distributor in UK and Ireland, is actively promoting BCtect® to private clinics, and in late March the London Breast Clinic officially opened for testing. This agreement has not materialised in any sales in the first quarter. After the quarter, two hospitals in the larger Nuffield Health hospital group publicly announced the future availability of BCtect®. Algol Pharma has signed the first private clinic in Finland as customer for BCtect®. DiaGenic has conducted an extensive study including 130 new patients and controls, making the combined study to one of the largest within this area. In a subset of patients recruited from Swedish hospitals a much higher accuracy was observed (>85%). This reflects the true accuracy of the test when compared to patients with a higher accuracy of the clinical diagnosis by using CSF biomarkers. Comprehensive income totalled NOK -11.8 million for the first quarter in 2010 compared with NOK -11.4 million in the corresponding period in 2009. Total operating costs for the first quarter 2010 amounted to NOK 11.9 million compared with NOK 11.6 million in the first quarter 2009. The company’s liquid assets totalled NOK 32.9 million at 31 March 2010. In first quarter 2010 the Company issued 3.5 million shares at a subscription price of NOK 2.75 per share. The gross proceeds from the issue amounted to NOK 9.6 million. As resolved by the General Meeting in December 2009 the Company issued 16 million warrants during the first quarter. Each warrant holds the right to subscribe for one new share in the Company at a subscription price of NOK 3.25 per share and the warrants lapse on 30 September 2010. Future prospects •Launch of ADtect® in European countries covered by the Ferrer contract. •Gain market acceptance of ADtect® and BCtect® in Europe from a growing customer base followed by gradual increase of sales revenue •Continue with US market entry plan •Continue with the companion diagnostics strategy, including marketing of our biomarkers to the pharmaceutical industry Attachments: The First Quarter report and presentation Contact: MD PhD Erik Christensen, CEO Telephone: +47 95939918 e-mail: erik.christensen@diagenic.com