Fermiscan Holdings Limited (Fermiscan), a in vitro diagnostics company, has reported total revenues of AUD3.74 million for the full year of 2008, compared with total revenues of AUD1.36 million in the previous year-end. It has also reported a net loss attributable to shareholders of AUD9.2 million, or 6.4 cents per share, for the full year of 2008, compared with net loss attributable to shareholders of AUD7.3 million, or 3.7 cents per share, in the previous year-end.
Fermiscan business update
Commercialisation of the fermiscan breast cancer test in Australia is on plan
Completion of a large scale (2,000 patient) clinical trial program in May 2008
Reported an accuracy of 74% in identifying the presence of breast cancer in women under 70 years of age
Reported a negative predictive value of 99.5% (probability of no disease among patients with a negative test)
Acquisition of Sydney Breast Clinic in June 2008
Largest private breast clinic in Australia
Fermiscan is conducting a further trial through the Sydney Breast Clinic patients to provide additional information to both Fermiscan and breast physicians on the potential value and practice of the Fermiscan Test
Patent “Using hair to screen for breast cancer” granted in Japan
facilitates commencement of clinical research program for regulatory approval in Japan
Completion of pilot study in Italy by the Piedmont Health Unit in Turin for which the results will be released shortly
Development of further clinical study in Italy to support commercial development in Europe, targeting Italy as the first EU country to launch the Fermiscan Test
Commencement of process for obtaining CE Mark registration of the Fermiscan Test in Europe with expected completion mid 2009
Completion of user agreement with the Australian Synchrotron in Melbourne secures beam time locally for processing of samples
User agreement with European Synchrotron Research Facility in France secures further beam time capacity
The cash flow for the year to December 2008 includes the cash flows from Sydney Breast Clinic which was acquired by Fermiscan on 13 June 2008. Receipts from customers of Sydney Breast Clinic were AUD2.7 million in the period since acquisition.
The group net operating cash outgoings for the year were AUD8.3 million and included AUD3.3 million for scientific facilities and synchrotron beam line rental at Chicago in the US. The scientific operations support the current domestic and international clinical studies and contribute to the establishment of synchrotron scientific capability for the future.
The monthly net operating cash outgoings for the year to December 2008 were AUD0.7 million per month. The overall net cash position in the year to 31 December 2008 decreased by AUD13.4 million from AUD20.9 million to AUD7.5 million and included the purchase price for Sydney Breast Clinic of AUD3.5 million in addition to AUD2.2 million of Sydney Breast Clinic debt retirement.
In line with the company’s objective to ensure prudent management of cash resources, future cash flows will reflect significant cost reductions in synchrotron operations following the move to the Australian Synchrotron (now that it is operational) and reduced clinical trial costs as a result of the successful completion of the Fermiscan 2,000 patient trial in 2008.
In addition non-essential expenditure has been strictly controlled and development aspects such as spending on patent development on Analytical Method & Apparatus (the Bevan Reid patents) has ceased.
Spending is focused on the commercialisation of the Fermiscan Breast Cancer Test.