- North American resources focused on commercialization of
ColonSentry(TM); Asian resources focused on pipeline development and
local commercialization -
TORONTO, Nov. 12 /PRNewswire-FirstCall/ - GeneNews Limited (TSX: GEN), a company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today announced that it has implemented a strategic restructuring of its North American and Asian operations. The Company's operation in Canada will focus on the Canadian and U.S. commercialization of its lead product, ColonSentry(TM), the world's first blood-based test to determine a person's current risk for colorectal cancer. Research and development of the Company's pipeline, including patient sample accrual to support these activities, will be moved to GeneNews' Asian operations. As part of the restructuring, the Company has reduced its workforce in Canada by 40%.
"While these actions are difficult, when assessing the structure of our company and our strengths in Canada and Asia, we determined that there were efficiencies in research and development that could be better leveraged from our Asian operations in Penang, Malaysia and Tianjin, China," said Dr. Heiner Dreismann, Lead Director and Interim CEO of GeneNews. "Transferring this segment of our operations to our Asian facilities also enhances opportunities to access to capital from Asian sources, which GeneNews has successfully secured in the past, to support research and development activities including the accrual of patient samples to support our pipeline development. We will also be better positioned to attract resources and expertise to facilitate the commercial launch of our products in China, Malaysia and the surrounding regions."
Dr. Dreismann continued: "This restructuring will result in a substantial reduction in cash expenditures in Canada over the near term and allows us to completely refocus our North American sources on the commercialization of our lead ColonSentry(TM) product in Canada and the U.S. As we roll out our test in additional regions in Canada and prepare for its commercial launch in the U.S. in the second half of 2009, we believe that a leaner and more focused organization will provide a significant strategic advantage to GeneNews."
The Company will maintain its global headquarters in Canada where it
will focus on Canadian marketing activities and development of a U.S.
marketing and reimbursement strategy for the ColonSentry(TM) test. GeneNews
will continue development and validation of the ColonSentry(TM) test to
support a CLIA submission and the operation of a centralized clinical
reference laboratory to serve the North American market from its global
headquarters. Scientific leadership and direction for research and
development activities that will be pursued by the Company's Asian
facilities and the development of a strategy to create a personalized
health management system based on the Sentinel Principle(TM) will also be
managed in the Company's global headquarters.
GeneNews is focused on the application of functional genomics to enable early diagnosis and personalized therapeutic intervention based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle(TM), to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle(TM) in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. For more information on GeneNews, visit http://www.genenews.com.
This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.
|SOURCE GeneNews Limited|
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