VolitionRx Limited (NYSE-A:VNRX) has reported a sharp rise in annual revenue as it ‘shifts gears’ towards its goal of becoming a commercial company with products.
The company, which is developing simple, easy-to-use, cost-effective blood tests to help diagnose and monitor a range of life-altering diseases including cancer in both humans and animals, recorded revenue of approximately $300,000 for the year to December 31, 2022, up 240% over the prior year. It ended 2022 with cash and cash equivalents of $10.9 million.
"I could not be prouder of the team's achievement in securing global supply agreements for our Nu.Q Vet Cancer Test with two industry-leading companies, Heska and IDEXX," Volition president and CEO Cameron Reynolds said in the results statement. "Volition Veterinary is an exciting, fast-moving part of our business with clear potential to generate significant revenue for the company, through both upcoming milestone payments and ongoing sales of kits and key components.”
“We have also made good progress in other key areas especially our Nu.Q NETs product pillar with the achievement of a CE Mark and the appointment of DXOCRO to spearhead our product development and regulatory programs in the US through the FDA, as we shift gears towards our goal of becoming a commercial company with products,” Reynolds added.
Other financial highlights include:
- Received a $10 million upfront payment on signing the Heska Licensing and Supply Agreement;
- During 2022, strengthened its balance sheet by adding approximately $6.4 million in net cash (before deducting offering expenses payable by Volition) through an underwritten public offering of its common stock in August;
- In August 2022, announced the award of approximately $1.5 million in non-dilutive funding from Namur Invest Capital Risk in Belgium to fund an early access program for its Nu.Q product portfolio at key sites across the EU, the UK, and the US;
- Net cash used in operating activities was $15.3 million for the full year or a monthly average of approximately $1.3 million; and
- In February 2023, received approximately $8 million in net cash (before deducting offering expenses payable by Volition) through an underwritten public offering of its common stock.
Volition said its commercialization strategy includes low capital expenditures for licensors and end users, as well as low operating expenses for Volition, to ensure its products are affordable and accessible worldwide.
Given the global prevalence of cancer and diseases associated with NETosis, and the low-cost, accessible and routine nature of its tests, the company said it believed its Nu.Q product could potentially be used throughout the world in both animals and humans, in multiple diseases. The company estimated its annual total addressable market to be approximately $70 billion worldwide for its products including Nu.Q Vet, Nu.Q Discover, Nu.Q NETs and Nu.Q Cancer.
Upcoming milestones include:
- Drive near-term revenue in the following key areas:
- Achieve the remaining milestones under the Heska agreement and receive further milestone payments of potentially $13 million expected in 2023, and a further $5 million anticipated in 2024;
- Sales of key components of point of care test with Heska;
- Sales of kits from non-exclusive agreements for the use of Nu.Q® Vet via central reference labs to Heska, IDEXX, and others;
- License of Volition's technology, with a particular but not exclusive focus on Nu.Q® Vet;
- Fulfill ongoing and enter into new Nu.Q® Discover agreements; and
- Sales of disease monitoring tests (e.g. sepsis and COVID-19).
- Continue to progress the research program for the use of Nu.Q in NETosis and submit an application to the FDA's Breakthrough Device Program anticipated in the first half of 2023.
- Continue to advance the previously announced large-scale blood, lung, and colorectal cancer trials in Europe, Asia, and the US.
- Publish several abstracts and peer-reviewed scientific papers with clinical results showing the robustness and utility of its Nu.Q platform.
- Advance the development of Nu.Q Capture products to proof of concept.
- Continued focus on filing patents to expand and extend Volition's intellectual property portfolio, and protect the large number of patents already granted.
Volition’s full 2022 results announcement can be found by following this link.
The company's executives will hold host a call today, March 16, 2023, at 8:30am ET to discuss the results.
- US & Canada Dial-in: 1-877-407-9716 (toll free)
- UK Dial-in: 0 800 756 3429 (toll free)
- Toll/International: 1-201-493-6779
- Conference ID: 13736997
A live audio webcast of the conference call will also be available on the investor relations page of Volition's corporate website.
Contact the author at stephen.gunnion@proactiveinvestors.com