Predictive Oncology Inc. (NASDAQ:POAI) said it ended the second quarter of 2022 with a strong balance sheet, a solid cash position, commensurate equity, and no debt.
The Minnesota-based company recognized net sales revenue of $400,000 for the three months ended June 30, 2022, an increase of 6% from the year-ago period, mainly due to a $100,000 sales contribution from its zPREDICTA subsidiary which is pioneering tumor-specific 3D cell culture services for anti-cancer drug testing.
“zPREDICTA is anticipating stronger business growth in the second half of the year with current and potential customers of its validated models for multiple myeloma (existing), breast cancer (new) and pancreatic cancer (new), as well as the development of new therapies in immuno-oncology,” the company said in its results update.
READ: Predictive Oncology appoints Dr Julia Kirshner as its new chief scientific officer
Predictive Oncology noted that its cash and cash equivalents stood at $28 million as at the end of June, up from $25 million on March 31, 2022, while gross profit margin for the second quarter was 64% compared to 59% in the 2021 quarter, thanks to zPREDICTA’s strong margins.
Higher operating costs associated with the company’s commercial strategy for zPREDICTA and PeDAL resulted in an increase in net cash used for operating activities to $6.4 million in the second quarter from $5.5 million in the year-ago period.
General and administrative expenses increased from $2.1 million in the quarter ended June 30, 2021, to $2.4 million for the corresponding quarter in 2022, while quarterly sales and marketing expenses increased by $100,000 to $300,000.
Predictive Oncology noted that its recent appointment of Dr Julia Kirshner as chief scientific officer will strengthen the company’s scientific and product offerings. Dr Kirshner will focus on the integration of the company’s products and the future development of its scientific programs, while also working closely with Dr Pamela Bush, senior vice president of Strategic Sales and Business Development, to identify and meet customer needs and provide expanded solutions along the AI and drug development continuum.
The company will host a conference call to discuss the results today, August 12, 2022, at 12.00pm ET. Interested parties can click here to register and view the webcast.
Predictive Oncology is a knowledge-driven company focused on applying artificial intelligence (AI) to develop optimal cancer therapies, which can lead to more effective treatments and improved patient outcomes.
Contact the author at jon.hopkins@proactiveinvestors.com