Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VolitionRX Ltd (VNRX, Financial) reported a revenue of approximately $170,000 for the quarter, marking a 15% increase compared to the same period last year.
- The company has successfully secured non-dilutive funding on favorable terms, targeting up to $25 million from U.S. government agencies and an additional $18 million from various European agencies.
- VolitionRX Ltd (VNRX) is making significant progress in its clinical trial programs, particularly with its new Q NETs and capture PCR technologies, which are nearing the completion of important data collection phases.
- The company has launched two major product lines which are expected to accelerate revenue in the second half of 2024.
- Board of Directors and leadership team have shown strong commitment by opting to take a significant portion of their fees and salaries in equity, demonstrating confidence in the company's future.
Negative Points
- Despite the increase, revenue generation remains modest with the company still in early stages of commercializing its technologies.
- VolitionRX Ltd (VNRX) is still not cash flow positive, though it aims to achieve cash flow neutrality by 2025.
- The company has had to undertake significant cost-cutting measures, including a $10 million reduction in expenditures on an annualized basis and indefinite postponement of cash bonuses.
- Revenue ramp from new Q Vet has taken longer than anticipated, indicating potential challenges in market penetration and product adoption.
- The complexity and broad scope of potential licensing and supply agreements for new technologies like capture PCR may pose challenges in swiftly finalizing deals.
Q & A Highlights
Q: Can you provide more details about the lung cancer study being conducted in France, Lyon?
A: Terig Hughes, CFO of VolitionRX, confirmed ongoing significant progress in lung cancer studies both in Taiwan and France. In Taiwan, the study integrates with low-dose CT scanning, showing promising results aimed at inclusion in the Taiwanese screening program. In France, the study focuses on deciding treatment paths for patients, showing effective results for clinical use. Both studies use VolitionRX's original Nu.Q platform, not the newer capture PCR technology.
Q: What feedback and traction have you observed from veterinarians in the US regarding the canine cancer test?
A: Cameron Reynolds, CEO of VolitionRX, noted that while the adoption process involves educating the market about routine cancer screening for pets, feedback from key opinion leaders has been very positive. The recent launches by major partners like AdTech and Fuji in Japan are expected to enhance market penetration and increase product accessibility, contributing to revenue growth in the latter half of the year.
Q: Could you elaborate on the potential of the capture PCR technology beyond point-of-care and hospital screening, particularly in the biopharma R&D market?
A: Terig Hughes explained that the capture PCR technology is groundbreaking as it isolates smaller, cancer-derived DNA fragments, opening up new biomarker discoveries. This technology has broad applications beyond cancer screening, including drug efficacy studies and other research applications, positioning it as a versatile tool in both clinical and research settings.
Q: What are the timelines and expectations for the human sepsis studies?
A: Cameron Reynolds discussed the extensive data being compiled for sepsis diagnostics, which is expected to significantly impact diagnosis and treatment protocols. The company is preparing for large-scale licensing opportunities, with substantial data expected in the coming months to support these efforts. The goal is to license the sepsis diagnostics within the next 12 months.
Q: Can you provide an update on the rollout of the new Q Vet test, particularly regarding its use for monitoring treatment progress in pets?
A: Terig Hughes and Gael Forterre, CCO of VolitionRX, indicated that while the current focus is on screening, discussions are underway to add monitoring as an additional indication. This approach ensures clarity and avoids market confusion during the initial product launch phase. The monitoring application could significantly increase the test's usage frequency per animal, enhancing its market potential.
Q: How is the company progressing with its cost-cutting measures, and what savings have been achieved so far?
A: Terig Hughes clarified that most of the planned $10 million cost reductions are set to occur throughout the current year, with significant savings expected by year-end. These measures include executives taking a portion of their compensation in equity, which will commence shortly and contribute to the company's financial efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
