SPECTRAL
ANNOUNCES THIRD QUARTER 2012 RESULTS
TORONTO, Canada – November 14, 2012 – Spectral Diagnostics Inc.,
(TSX:SDI) (OTCQX:
DIAGF),
a
Phase
III company developing the first theranostic treatment for patients
with septic
shock,
today announced its financial
results for the third quarter ended September 30, 2012.
Third Quarter Highlights:
·
Announced
that the U.S. Food and Drug Administration
approved an amended protocol for Spectral’s Phase III EUPHRATES
trial, which
will now have two planned interim analyses instead of one. Spectral
requested
the amendment, including the strategy for two interim analyses. The
first
interim analysis, for safety, will occur when 76 randomized
patients have been
followed for 28 days. Seventy three patients have been randomized
into the
trial at 25 sites as of October 31, 2012. The second interim
analysis - anticipated
in the first half of 2014 - will occur after 184 randomized
patients have been
followed for 28 days. At the second analysis, the Data Safety
Monitoring Board
will advise Spectral on the trial’s safety and efficacy. Stopping
rules for
efficacy are included in the second interim analysis.
·
Continued
enrolling patients into the Company’s Phase
III EUPHRATES trial at a per site rate that is higher than previous
sepsis
trials. Directed by the Company's Endotoxin Activity Assay (EAA™),
which is the
only FDA-cleared diagnostic for the risk of developing sepsis,
Spectral's
EUPHRATES trial is currently targeted to enroll 306 evaluable
patients at up to
60 sites in North America. Contingent on
maintaining current enrolment rates and timely site start ups, the
trial should
be fully enrolled by the end of 2014.
·
Announced
an exclusive distribution agreement with
Toray International Italy S.r.l. - a subsidiary of Toray
Industries, Inc. - to
sell the Company’s Endotoxin Activity Assay in combination with
Toraymyxin in Saudi Arabia and Turkey. The expansion of
commercial
jurisdictions with Toray further confirms the outstanding market
opportunity
for the Company’s unique theranostic treatment for septic
shock.
·
Concluded
the reporting period with approximately $12.2
million in cash, cash equivalents and short- term investments.
“As
the enrollment of patients in our Phase III trial
progresses, we are closing in on a number of inflection points for
our current and
prospective investors,” said Dr. Paul Walker, President and CEO of
Spectral
Diagnostics. “In addition, there continues to be a significant
unmet medical
need in the area of severe sepsis, and we feel we are at the
forefront of
meeting that need with our theranostic treatment.”
Financial Review
Revenue for the
three months ended
September 30, 2012 was $667,000 compared to $489,000
for the same period in the preceding
year. For the nine months ended September 30, 2012 revenue was
$1,942,000
compared to $1,802,000 for the same period in 2011.
For the second quarter ended September
30, 2012, the Company reported a loss of $2,077,000 compared to a
loss of $1,632,000
for the corresponding period in 2011. For the nine months ended
September 30, 2012, Spectral
reported a loss of $6,476,000 compared to $4,807,000 for the same
period in
2011. The Company’s loss was greater for the three and nine months
of 2012 due
to higher costs for its Phase
III EUPHRATES trial.
Cash, cash equivalents and
short-term investments on hand at September 30, 2012 were $12.2
million. Cash
was used during the quarter ended September 30, 2012 to fund
operations and for
working capital purposes.
The total
number of shares outstanding for the Company was 113,883,394 as at
September
30, 2012.
About Spectral Diagnostics
Spectral is a Phase III
company seeking U.S. FDA
approval for its lead theranostics product for the treatment of
severe sepsis with
septic shock. Toraymyxin is a therapeutic hemoperfusion device that
removes
endotoxin, which can cause sepsis, from the bloodstream. Directed
by the
Company's Endotoxin Activity Assay (EAA™), the only FDA cleared
diagnostic for
the risk of developing sepsis. Spectral's EUPHRATES
trial is the world's first theranostics trial in the area of
sepsis.
Toraymyxin has been approved
for therapeutic use
in Japan and Europe, and has been used safely and effectively in
more
than 100,000 patients to date. In March 2009, Spectral obtained the
exclusive
development and commercial rights in the U.S.
for Toraymyxin, and in November 2010, signed an exclusive
distribution agreement
for this product in Canada.
More than 250,000 patients are diagnosed with severe sepsis and
septic shock in
North America each year, representing a
greater than $1 billion market opportunity for Spectral. Spectral
is listed on
the Toronto Stock Exchange under the symbol SDI, and on the OTCQX
under the
symbol DIAGF. For more information please visit
www.spectraldx.com
Forward-looking
statement
Information in this news release
that is not current or historical factual information may
constitute forward-looking
information within the meaning of securities laws. Implicit in
this
information, particularly in respect of the future outlook of
Spectral and
anticipated events or results, are assumptions based on beliefs of
Spectral's
senior management as well as information currently available to it.
While these
assumptions were considered reasonable by Spectral at the time of
preparation,
they may prove to be incorrect. Readers are cautioned that actual
results are
subject to a number of risks and uncertainties, including the
availability of
funds and resources to pursue R&D projects, the successful and
timely
completion of clinical studies, the ability of Spectral to take
advantage of
business opportunities in the biomedical industry, the granting of
necessary approvals
by regulatory authorities as well as general economic, market and
business
conditions, and could differ materially from what is currently
expected.
The
TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this statement.
For further information please contact:
Anthony Businskas
Executive Vice President and CFO
416-626-3233 ext. 2200
|
Adam Peeler
Investor Relations
TMX Equicom
416-815-0700 ext. 225
apeeler@tmxequicom.com
|
Spectral
Diagnostics Inc.
Condensed
Interim Statement
of Financial Position
(in
thousands of Canadian dollars)
|
Note
|
September
30 2012
|
|
December
31 2011
|
|
|
$
|
|
$
|
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
and cash equivalents
|
|
7,094
|
|
13,470
|
Short-term
investment
|
|
5,137
|
|
5,086
|
Trade
and other receivables
|
|
611
|
|
515
|
Inventories
|
|
213
|
|
295
|
Prepayments
|
|
162
|
|
407
|
|
|
13,217
|
|
19,773
|
Non-current assets
|
|
|
|
|
Property, plant
and equipment
|
|
488
|
|
419
|
Intangible
assets
|
|
441
|
|
459
|
|
|
929
|
|
878
|
|
|
|
|
|
Total assets
|
|
14,146
|
|
20,651
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade
and other payables
|
|
1,507
|
|
1,610
|
Deferred
revenue
|
|
26
|
|
102
|
Total liabilities
|
|
1,533
|
|
1,712
|
|
|
|
|
|
Equity
|
|
|
|
|
Share
capital
|
|
27,101
|
|
27,101
|
Contributed
surplus
|
|
3,864
|
|
3,864
|
Other equity
reserves
|
8
|
8,232
|
|
8,082
|
Deficit
|
|
(26,584)
|
|
(20,108)
|
Total equity
|
|
12,613
|
|
18,939
|
|
|
|
|
|
Total liabilities and equity
|
|
14,146
|
|
20,651
|
Spectral
Diagnostics Inc.
Condensed
Interim Statement
of Loss and Comprehensive Loss
For the
nine months ended
September 30, 2012 and 2011
(Unaudited)
(in
thousands of Canadian dollars, except for share and per share
data)
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
September
30
|
|
September
30
|
|
Note
|
2012
|
2011
|
|
2012
|
2011
|
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
Revenue
|
|
667
|
489
|
|
1,942
|
1,802
|
|
|
|
|
|
|
|
Other
income
|
|
25
|
19
|
|
91
|
69
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Changes
in
inventories of finished goods and work- in-process
|
|
64
|
63
|
|
208
|
201
|
Raw
materials and consumables used
|
|
135
|
59
|
|
344
|
176
|
Employee
benefits
|
8, 10
|
598
|
575
|
|
2,004
|
1,988
|
Consulting
and professional fees
|
|
1,352
|
700
|
|
3,598
|
2,047
|
Management
services
|
11
|
173
|
375
|
|
923
|
1,125
|
Regulatory
and investor relations
|
|
112
|
68
|
|
334
|
205
|
Travel
and
entertainment
|
|
153
|
176
|
|
612
|
422
|
Depreciation
and amortization
|
|
57
|
49
|
|
163
|
263
|
Foreign
exchange (gain)loss
|
|
16
|
(18)
|
|
20
|
(1)
|
Other
expenses
|
|
127
|
110
|
|
355
|
301
|
|
|
2,787
|
2,157
|
|
8,561
|
6,727
|
|
|
|
|
|
|
|
Operating
loss
|
|
(2,095)
|
(1,649)
|
|
(6,528)
|
(4,856)
|
|
|
|
|
|
|
|
Finance
income
|
|
18
|
17
|
|
52
|
49
|
|
|
|
|
|
|
|
Loss
and comprehensive loss for the period
|
|
(2,077)
|
(1,632)
|
|
(6,476)
|
(4,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted loss per common share
|
|
(0.02)
|
(0.02)
|
|
(0.06)
|
(0.06)
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding
|
|
|
|
|
|
|
113,883,394
|
88,158,757
|
|
113,883,394
|
83,114,164
|