Precision Therapeutics Reports Third Quarter 2018 Financial Results
Highlights of the third quarter of 2018 and recent weeks include:
- Filed a Form S-4 registration statement with the
Securities and Exchange Commission(“SEC”) regarding its proposed merger transaction with Helomics Holding Corporation(“Helomics”) TumorGenesis, Inc.(“TumorGenesis”), a wholly owned subsidiary of Precision, achieved its first milestone by developing a discovery kit for screening ovarian cancer cell types, which is now being offered to its clients. The kit was developed using technology that Precision's joint venture partner, GLG Pharma LLC(“GLG”), licensed from a research institution.
- Formed a new
Scientific and Medical Advisory Boardand announced the appointment of:
— Marc Malandro PhD, CLP, RTTP, Vice President of Operations for Science at the Chan Zuckerberg Initiative.
— Amelia Wall Warner, PharmD, RPh, Founder and CEO of Clinical Trial Concepts.
— Robert Murphy, Ph.D. Ray and Stephanie Lane Professor of Computational Biology and Head of the
Computational Biology Departmentin the School of Computer Scienceat Carnegie Mellon University.
— Paul Kornblith, M.D., Founder and former Chairman and CEO of
Helomics Corporation. Dr. Kornblith currently serves as the Medical Advisor to Helomics, the Pittsburgh Life Sciences Greenhouse, and the Innovation Institute; as an Adjunct Professor in the School of Health and Rehabilitationat the University of Pittsburgh; and as the Western PennsylvaniaDirector for Life Sciences.
— Hector Gomez, MD, PHD, President & CEO, Co-Founder of
GLG Pharma, LLC.
— Paul Sweetnam, founder of
— Tony Frudakis. Previously Co-Founder & Chief Scientific Officer at
— Ratmir Derda, Associate Professor at the
University of Alberta.
Highlights from Helomics, which is 25% owned by
- Precision Oncology Insights business: continued to increase efforts on the outreach program to oncologists, driving growth in the numbers of specimens.
- Contract Research Organization (“CRO”) business: signed a major deal with a patient advocacy organization, the
National Alopecia Areata Foundation, which is expected to generate both project fees and recurring revenue over many years.
- D-CHIP™ (“Digital Clinical Health Insights Platform”): continued to add to this large repository of genomic and drug response profiles by signing a partnership agreement with Genome England’s 100,000 genomes project. This will allow Helomics to access data from the UK’s 100,000 genomes project to build out D-CHIP, especially in the area of Ovarian Cancer.
Highlights fromSkyline Medical, a division of
- Sold ten STREAMWAY Systems in the third quarter of 2018, compared with two STREAMWAY Systems in Q3 2017, bringing the total number of STREAMWAY Systems sold to 142 as of
September 30, 2018
— This included the first STREAMWAY sale in
Europe, to a clinic based in Switzerland
MEDICA, the leading international trade fair for the medical sector, which attracts more than 5,000 exhibitors from 70 countries
- Partnered with Prenit World, an international distributor of medical infrastructure solutions for healthcare facilities, to market the STREAMWAY System in
India. Signing this international distribution agreement represents the Company’s entry into India’s healthcare market.
- Signed independent distribution agreement in
Pakistanwith MediUrge, which is contractually guaranteed to purchase eighteen units in 2019
- Announced upgrades to the STREAMWAY System, with the anticipated launched of the Generation 3 STREAMWAY in Q1 2019, and the STREAMWAY Plus in the first half of 2019
“Our Skyline Medical division sold 10 STREAMWAY System units in the third quarter, which included our first sale outside
Dr. Schwartz continued, “At TumorGenesis, our aim is to produce a more accurate, predictive model of how treatments will perform, by growing human tumors outside the body that closely mimic the patient’s internal environment and ‘fool’ the cancer cells into thinking they are inside a human patient’s body. This is expected to generate a more accurate response when testing drugs for personalized therapy and in the development of new drugs. We are making solid progress executing against this strategy and have reached our first milestone, with TumorGenesis developing a discovery kit for screening of ovarian cancer cell types. The kit is now being made available to clients of TumorGenesis for whole cell screening in Clinical Research Projects. We are excited about this accomplishment as we believe this completely new and revolutionary method of screening will ultimately represent a major breakthrough for ovarian cancer patients, as these cells are unique and are difficult to culture.”
“The build out of our D-CHIP (AI-powered Bio Informatics Platform) continues as we continue to add to our large repository of genomic and drug response profiles from the initial 150,000 anonymized clinical tests, performed on the patient’s own tumor. We recently signed a partnership agreement with Genome England’s 100,000 genomes project. Through this partnership we have use of a very expensive whole genome sequencer and access to the data they have generated on patient’s entire DNA which will allow us to build out D-CHIP especially in the area of ovarian cancer.
“We also continue to make progress at our Precision Oncology Insights business with our outreach program to oncologists, which is generating growth in our specimen numbers. Higher specimen numbers represent revenue from the clinical testing, plus additional revenue in the form of data for the D-CHIP and as appropriately consented material for our CRO services business,” concluded Mr. Vardzel.
Revenue for the three months ended
Gross profit for the three months ended
Total operating expenses for the three months ended
The Company also reported a
Comprehensive loss for the three months ended
Revenue for the nine months ended
Gross profit for the nine months ended
Total operating expenses for the nine months ended
The Company also reported a
Comprehensive loss for the nine months ended
The Company had cash, cash equivalents and marketable securities of
Conference Call and Webcast
Management will also hold a conference call to provide a general business update and discuss upcoming milestones. The conference call is scheduled to begin today at
To access the conference call, U.S.-based listeners should dial +1 (800) 239-9838 and international listeners should dial +1 (323) 794-2551. All listeners should provide the following passcode: 7614019.
A dial-in replay of the call will also be available to those interested until
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About Precision Therapeutics Inc.
Precision Therapeutics’ medicine business is committed to improving the effectiveness of cancer therapy using the power of artificial intelligence (AI) applied to rich data diseases databases. This business has launched with Precision Therapeutics' investment in Helomics Corporation, a precision medicine company and integrated clinical contract research organization whose mission is to improve patient care by partnering with pharmaceutical, diagnostic, and academic organizations to bring innovative clinical products and technologies to the marketplace. In addition to its proprietary precision diagnostics for oncology, Helomics offers boutique CRO services that leverage their patient-derived tumor models, coupled to a wide range of multi-omics assays (genomics, proteomics and biochemical), and a proprietary bioinformatics platform (D-CHIP) to provide a tailored solution to our client's specific needs. Helomics is currently 25% owned by Precision Therapeutics. Helomics® is headquartered in Pittsburgh, Pennsylvania where the company maintains state-of-the-art, CLIA-certified, clinical and research laboratories. For more information, please visit www.Helomics.com.
Precision Therapeutics has also announced the formation of a subsidiary, TumorGenesis to pursue a new rapid approach to growing tumors in the laboratory, which essentially “fools” the cancer cells into thinking they are still growing inside the patient. Precision Therapeutics and Helomics have also announced a proposed joint venture with GLG Pharma focused on using their combined technologies to bring personalized medicines and testing to ovarian and breast cancer patients, especially those who present with ascites fluid (over one-third of patients). The growth strategy in this business includes securing new partnerships and considering acquisitions in the precision medicine space.
Sold through the Skyline Medical business of Precision Therapeutics, The STREAMWAY System virtually eliminates staff exposure to blood, irrigation fluid and other potentially infectious fluids found in the healthcare environment. Antiquated manual fluid handling methods that require hand carrying and emptying filled fluid canisters present an exposure risk and potential liability. Skyline Medical's STREAMWAY System fully automates the collection, measurement, and disposal of waste fluids and is designed to: 1) reduce overhead costs to hospitals and surgical centers; 2) improve compliance with OSHA and other regulatory agency safety guidelines; 3) improve efficiency in the operating room, and radiology and endoscopy departments, thereby leading to greater profitability; and 4) provide greater environmental stewardship by helping to eliminate the approximately 50 million potentially disease-infected canisters that go into landfills each year in the U.S. For additional information, please visit www.skylinemedical.com.
Certain of the matters discussed in this announcement contain forward-looking statements that involve material risks to and uncertainties in the Company's business that may cause actual results to differ materially from those anticipated by the statements made herein. Such risks and uncertainties include (1) risks related to the proposed merger with Helomics, including the fact that we may not complete the merger; we do not have complete information about Helomics; the combined company will not be able to continue operating without additional financing; possible failure to realize anticipated benefits of the merger; costs associated with the merger may be higher than expected; the merger may result in disruption of the Company’s and Helomics’ existing businesses, distraction of management and diversion of resources; delay in completion of the merger may significantly reduce the expected benefits; and the market price of the Company’s common stock may decline as a result of the merger; (2) risks related to our partnerships with other companies, including the need to negotiate the definitive agreements; possible failure to realize anticipated benefits of these partnerships; and costs of providing funding to our partner companies, which may never be repaid or provide anticipated returns; and (3) other risks and uncertainties relating to the Company that include, among other things, current negative operating cash flows and a need for additional funding to finance our operating plan; the terms of any further financing, which may be highly dilutive and may include onerous terms; unexpected costs and operating deficits, and lower than expected sales and revenues; sales cycles that can be longer than expected, resulting in delays in projected sales or failure to make such sales; uncertain willingness and ability of customers to adopt new technologies and other factors that may affect further market acceptance, if our product is not accepted by our potential customers, it is unlikely that we will ever become profitable; adverse economic conditions; adverse results of any legal proceedings; the volatility of our operating results and financial condition; inability to attract or retain qualified senior management personnel, including sales and marketing personnel; our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary marketing and/or distribution partners and with any strategic or joint venture partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, which are available for review at www.sec.gov. This is not a solicitation to buy or sell securities and does not purport to be an analysis of the Company's financial position. See the Company's most recent Annual Report on Form 10-K, and subsequent reports and other filings at www.sec.gov.
CONDENSED CONSOLIDATED BALANCE SHEETS
|Cash and Cash Equivalents||$||209,891||$||766,189|
|Certificates of Deposit||-||244,971|
|Loan Receivable – Bridge Loan||1,815,000||-|
|Prepaid Expense and other assets||404,428||289,966|
|Total Current Assets||3,109,540||2,371,182|
|Fixed Assets, net||198,258||87,716|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Note Payable – Bridge Loan Net of Discount of $1,293,047||1,004,680||-|
|Commitments and Contingencies||-||-|
|Series B Convertible Preferred Stock, $.01 par value, 20,000,000 authorized, 79,246 and 79,246 outstanding||792||792|
|Series C Convertible Preferred Stock, $.01 par value, 20,000,000 authorized, 0 and 647,819 outstanding||-||6,479|
|Common Stock, $.01 par value, 50,000,000 authorized, 13,398,339 and 6,943,283 outstanding||133,983||69,432|
|Additional paid-in capital||64,297,137||57,380,256|
|Total Stockholders' Equity||3,026,567||2,691,914|
|Total Liabilities and Stockholders' Equity||$||5,415,699||$||3,624,254|
PRECISION THERAPEUTICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS
|Three Months Ended
|Nine Months Ended
|Cost of goods sold||83,006||28,706||309,320||87,709|
|General and administrative expense||762,603||621,716||2,708,274||3,968,493|
|Sales and marketing expense||621,465||301,672||1,726,087||680,396|
|Loss on equity method investment||(645,786||)||-||(1,606,294||)||-|
|Net loss attributable to common shareholders||(2,506,869||)||(992,095||)||(6,640,301||)||(4,877,542||)|
|Loss per common share - basic and diluted||$||(0.19||)||$||(0.16||)||$||(0.55||)||$||(0.78||)|
|Weighted average shares used in computation - basic and diluted||13,252,605||6,232,761||12,178,285||6,283,567|
See Notes to Condensed Consolidated Financial Statements
Source: Precision Therapeutics Inc.