Miami Beach, Florida Aug 12, 2019 (Issuewire.com) - Zomedica Pharmaceuticals Corp. (NYSE American:ZOM) (ZOM.V), a veterinary diagnostic and pharmaceutical company, announced earnings last week that shows a balance sheet that is improving behind some key strategic initiatives. On August 8th, ZOM released its Q2 2019 results that highlighted advances related to its TRUFORMA biosensor platform as well as benefit from the company's recent subscription agreement to sell $12 million of its Series 1 Preferred Shares.
Gerald Solensky Jr., Chairman, and CEO of Zomedica stated about the quarter, “We have made significant progress in the first half of 2019 with our development of TRUFORMA™, Zomedica’s point-of-care biosensor platform, as well as our digital data platform and other product lines,” He added, “We believe our continued progress on our diagnostic platforms and therapeutic candidates will enable us to deliver products that make a real difference for clinical veterinarians and the care they provide to our companion animals.”
Highlights Of The Quarter Include
Management also discussed the benefits from its May 2019 subscription agreements to sell $12,000,000 of its Series 1 Preferred Shares to an accredited investor. The deal was structured as a private placement with terms set at a purchase price of $1,000,000 per Series 1 Preferred Share. According to the update, $5,000,000 of the purchase price was paid in May 2019 and $7,000,000 was paid in June 2019. Unlike common fundraising for small-cap stocks, the preferred shares do not have voting rights except to the extent required by applicable law and are not convertible into the Company’s common shares. Additionally, holders of the preferred shares will not be entitled to dividends but, in lieu thereof, will receive Net Sales Payments (annual payments equal to 9 percent of net sales of the Company) until such time as the holders have received total Net Sales Payments equal to 9 times the aggregate stated value of the outstanding preferred shares.
Also in May 2019, ZOM announced the achievement of beta finalization of the TRUFORMA™ instrument design and the completion of feasibility testing of the first assays. ZOM commented that with the achievement of these milestones, they have transitioned to final design and commercial production for the instrument. Additionally, based on the company's development work, the initial assays have satisfied Zomedica’s target product specification for correlation greater than 0.95 and for dynamic range, which depending on the assay, are as low as 9 pg/mL and greater than 500 ng/mL. Time to result during this feasibility testing averaged less than 15 minutes utilizing canine and feline serum samples. Zomedica noted that they expect to commence commercialization of TRUFORMA™ and the initial assays in the first quarter of 2020.
ZM-022 Assay Moving Forward
Zomedica also announced that they are progressing on the development of additional pipeline products. In June, Zomedica announced the completion of initial development work on a blood-borne lymphoma cancer assay, designated ZM-022, intended for use with its canine cancer liquid biopsy platform, ZM-017. The lymphoma assay is designed to identify specific genetic abnormalities using fluorescence in situ hybridization. The ZM-022 assay is being developed for use on Zomedica’s liquid biopsy platform, and the company expects to commence commercialization of the platform and initial assays in the second half of 2020.
Finally, in July of this year, Zomedica announced development initiation of a digital customer data platform to enhance the customer experience. According to the Q2 update, the platform is also intended to support veterinary teams with clinically relevant business services, including inventory management and key performance metrics reporting. The platform is expected to launch in the first quarter of 2020 along with the commercialization of TRUFORMA™.
Earnings By The Numbers
The Q2 report showed that Zomedica recorded a net loss and comprehensive loss for the three and six months ended June 30, 2019 of $2,404,427, or $0.02 per share, and $14,081,337, or $0.13 per share, compared to a loss of $4,144,398, or $0.04 per share, and $6,315,727, or $0.07 per share, for the three and six months ended June 30, 2018.
As of June 30th, Zomedica had cash and cash equivalents of $5,822,148, compared to $1,940,265 as of December 31, 2018. The increase in cash during the six months ended June 30, 2019, resulted primarily from the financing activities described below, partially offset by cash flows used in operating and investing activities as discussed below.
Zomedica is nearing the launch of its TRUFORMA biosensor diagnostic device that can change the status of the company from development-stage to revenue-generating. The company is well-managed and has a pipeline of promising products that can grab market traction quickly after launch. The stock trades on the NYSE American market and shares exchange hands with an average daily volume of roughly 358K shares per day.
Media Contact
Perceptive Advisors editorial@soulstringreport.com http://www.soulstringreport.com
