VolitionRx Limited (NYSEAMERICAN:VNRX) posted third-quarter results Wednesday that saw its balance sheet strengthened, with the multi-national life sciences company seeing its cash and cash equivalents increasing significantly, thanks to warrant exercises by investors.
The Isnes, Belgium-based firm, which is developing easy-to-use blood-based cancer tests to accurately diagnose a range of cancers, said its cash and cash equivalents as of September 30, 2019 totaled $19.7 million compared to $13.4 million as of the end of 2018.
The company noted that an additional $4.8 million in aggregate of warrants were exercised at $3 per share. During the third quarter, the company was awarded $1.4 million in grant-funding from the Walloon Region and, subsequent to quarter-end, an additional $500,000 unsecured loan from SOFINEX was approved.
The company also recorded its first revenues this quarter from the sales of its research-use only kits and contract services.
The group said it continued to manage cash carefully, with cash burn in the third quarter of 2019 at $3.6 million.
Boosted platform development
In a statement accompanying the company’s latest numbers, CEO Cameron Reynolds said: “We’ve made excellent progress this quarter on our platform development, Nu.Q Capture, Nu.Q Vet and our colorectal cancer and lung cancer trials, particularly in Asia, and we reported our first revenues from sales of research use only kits and the provision of contract research services.”
He further added: "We aim to strengthen our product pipeline beyond colorectal cancer to cover several cancers, most notably in lung cancer, and so are especially delighted to have commenced two studies in lung cancer this quarter, firstly our large-scale study in lung cancer with the National Taiwan University and secondly our first study in China with Shanghai Fosun Long March Medical Science Company. We have also expanded our colorectal cancer work with a first trial in China underway with Fosun.”
Reynolds pointed out that the company executed a contract with Texas A&M University to collaborate on the research and development of Nu.Q Vet products and help drive early revenue in the all-important veterinary market.
The all-important veterinary market
VolitionRx is developing easy to use blood-based cancer tests to accurately diagnose a range of cancers. As cancer cells multiply, they are modified in a way that distinguishes them from healthy cells and the traits of the malignant disease appear on the nucleosomes, which are analyzed by Volition’s Nu.Q’s platform.
VolitionRx is seeing encouraging preliminary results from the use of its Nu.Q. platform in veterinary medicine.
The US is currently the largest veterinary market in the world, with more than 55 million dogs and approximately 4.2 million cancer diagnoses each year.
The company has indicated that with pricing currently expected to be between $100-$200 per test, the veterinary market is a multi-billion-dollar opportunity.
Reynolds, who founded VolitionRx in 2010, said larger trials in veterinary medicine to test the Nu.Q platform are currently underway.
The company said it expects to achieve the following milestones this year and through 2020:
• Announce the results of multiple proof-of-concept cancer studies, starting in December 2019 and continuing throughout 2020;
• Complete the CE Marking of IVD kits for cancer triage tests;
• Advance its large-scale colorectal and lung cancer trials with a significant number of assays on the highly analytically accurate automated platforms;
• Announce preliminary results of Nu.Q's performance in other disease conditions and;
• Advance the development of Nu.Q Capture by determining the level of discrimination of tumor-associated nucleosomes using immunoassays and sequencing.
Reynolds concluded: “We believe the last decade of work and our extensive intellectual property portfolio puts Volition in a strong position to be a significant player in this field."
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