VolitionRx (NYSE-A:VNRX) Limited posted third-quarter results that demonstrated that it is in a strong financial position with $22.9 million and in advanced negotiations with three top veterinary companies for Nu.Q Vet licensing as it shifts gears to become a commercial company with products.
For the period ended September 30, 2021, the Austin, Texas-based epigenetics company had cash and equivalents of $22.9 million, compared to $19.4 million as of December 31, 2020.
Significantly, VolitionRx ’s cash burn rate during the 3Q averaged approximately $1.7 million per month, lower than the rate during the previous two quarters and also below the company's own expectations.
READ: VolitionRx says Nu.Q NETs assay shows promising results in coronavirus risk stratification
The company said the net loss for the third quarter was $7.2 million, compared to $5.6 million the previous quarter "with this increase primarily due to non-cash items.”
Volition is primarily focused on human diagnostics and monitoring but also has a subsidiary focused on animal diagnostics and monitoring.
"We have enjoyed an exciting quarter navigating the due diligence process and negotiations with three multi-national companies to advance term sheets for Nu.Q Vet licensing and distribution arrangements and anticipate signing a term sheet with one of those parties before the end of 2021," said CEO Cameron Reynolds in a statement.
"We have also made progress in other key areas including our Nu.Q NETs and Nu.Q Capture programs as we shift gears towards our goal of becoming a commercial company with products," he added.
Volition applies its Nucleosomics platform to develop simple, cost-effective blood tests to help diagnose and monitor a range of life-altering diseases including some cancers and diseases associated with NETosis such as sepsis and coronavirus (COVID-19).
The tests are based on the science of Nucleosomics, which is the practice of identifying and measuring nucleosomes in the bloodstream or other bodily fluid - an indication that disease is present.
In the earnings statement, Volition said it believes the Nu.Q NETs assay will have “wide applicability for monitoring diseases with a NETs component (such as COVID-19, influenza, sepsis, autoimmune diseases and cancer) and potentially to risk stratify patients for treatment selection.”
“Volition expects to register CE marks on its first NETs product, across multiple platforms including ELISA plate, automated beads and a proof of concept on very high throughput platform by the summer of 2022,” said the company.
On the clinical front, VolitionRx (NYSE-A:VNRX) has completed the preliminary analysis of the colorectal cancer studies conducted with National Taiwan University and has submitted these findings for presentation at a conference in early 2022.
“Volition has also been in active and continuing negotiations in Asia this year in addition to platform development on its first human cancer launch in China,” said the company.
Volition expects to achieve the following milestones in 2021 and beyond:
- Drive revenue in the coming quarters through licensing its technology, with a particular but not exclusive focus on Nu.Q Vet, processing samples at Silver One using its Nu.Q Discovery assays, and sales of its disease monitoring tests (aimed at COVID-19, sepsis);
- Advance the research program for the use of Nu.Q in NETosis, in monitoring disease progression of COVID-19, sepsis and potentially other diseases and as a possible companion diagnostic for a treatment for sepsis;
- Continue to advance its previously announced large-scale blood, lung and colorectal cancer trials in Europe, Asia and the US;
- Advance the development of Nu.Q® Capture;
- Continue to file patents to expand and extend its intellectual property portfolio.
VolitionRx (NYSE-A:VNRX) will host a conference call to discuss its 3Q results on November 11, 2021 at 8:00 am Eastern Time. Investors in the US and Canada can Dial 1-877-407-9716 (toll free), UK dial-in: 0 800 756 3429 (toll free), International: 1-201-493-6779. The Conference ID is 13725016.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive