VolitionRx (NYSE-A:VNRX) Limited rounded out a strong first quarter by receiving a $10 million milestone payment from Heska Corporation for the company’s Nu.Q Vet Cancer Screening Test.
In exchange for granting Heska exclusive worldwide rights to sell the Nu.Q Vet Cancer Screening Test for companion animals, Volition has received a $10 million upfront payment and is eligible to receive up to a further $18 million based upon the achievement of near and mid-term milestones.
In addition to these milestone payments, Volition expects to receive ongoing revenue for the supply of key components for the exclusive point of care products.
READ: VolitionRx launches its Nu.Q Vet Cancer Test in Asia through distributor SAGE Healthcare
The company underlined that the Heska deal is a long-term one with “significant market and revenue potential” for Volition through the “sale of kits and key components.”
"I am delighted with the progress we are making, and in particular could not be prouder of the team's achievement in securing a global licensing and supply agreement for our Nu.Q Vet Cancer Screening Test with Heska Corporation, one of the industry's leading companies," Volition CEO Cameron Reynolds said in the earnings statement.
"In April, we expanded our geographic footprint with the launch of the Nu.Q Vet Cancer Test in Singapore through SAGE Healthcare. We have also made good 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 a wide range of world class products," he added.
The Austin, Texas-based epigenetics company said it had cash and cash equivalents of around $23.7 million as of March 31, 2022, compared with $20.6 million at the end of December 2021.
For the period ended March 31, 2022, Volition reported a net loss of $7.7 million, compared to $6.1 million for the first quarter in 2021.
Volition told investors that SAGE Healthcare launched the firm’s Nu.Q Vet Cancer Test in Singapore.
“We are in advanced negotiations with other potential licensing partners in our efforts to make Nu.Q Vet products as accessible as possible worldwide and anticipate further announcements in 2022,” revealed the company.
Meanwhile, Volition told investors it is developing a large 1000-plus patient Nu.Q Capture study in lung cancer and colorectal cancer with further announcements expected in 2022.
Volition highlighted the following upcoming milestones:
- Continue to progress the research program for the use of Nu.Q in NETosis, in monitoring disease progression of coronavirus (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;
- Publish several abstracts and peer-reviewed scientific papers with clinical results showing the robustness and utility of its Nu.Q platform;
- Continue to file patents to expand and extend its intellectual property portfolio.
Volition will host a conference call on May 12 at 8:30 am ET to discuss the results. US and Canada investors can dial-in at 1-877-407-9716 (toll free) and International investors can dial in at 1-201-493-6779. The conference ID is 10167203.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive