MELBOURNE, AUSTRALIA -- (Marketwired) -- 04/30/13 -- Genetic Technologies Limited (ASX: GTG) (NASDAQ: GENE)
•Record BREVAGen samples received in March quarter, up 10% sequentially
•Total BREVAGen sales revenue increased by 31% sequentially
•Reimbursement contracts with top U.S. PPOs continue to progress
Genetic Technologies Limited (ASX: GTG) (NASDAQ: GENE) today announced its financial results for the quarter ended March 31, 2013.
Total cash receipts from customers during the period were $1.25 million, with year-to-date cash collection totalling $6.5 million. Continued strength in domestic revenues in the quarter demonstrate further growth and expansion of BREVAGen, Genetic Technologies' flagship non-familial breast cancer risk assessment test.
Of particular note during the period, the Company saw record samples received from BREVAGen. The Company reported 403 samples received in the quarter, growing 10% sequentially, and demonstrating increasing traction in the market. Further, total sales revenue for the test increased 31% sequentially, benefitting from positive changes affecting the reimbursement of the test.
"We are thrilled to see the uptick in both samples received and sales revenue for BREVAGen in the quarter," said Alison Mew, Chief Executive Officer of Genetic Technologies. "The record strength in the quarter is illustrative both of the continued traction BREVAGen is generating in the U.S. marketplace, as well as the favorable effect of the new reimbursement guidelines with regard to our fully adjudicated claims."
On January 1, 2013, the American Medical Association revised the code stack claim process for reimbursement, requiring tests without a specific CPT code to be claimed via an "unlisted or miscellaneous code." Since January 1, as part of this transition, the list price for BREVAGen was increased to enable the Company to receive payment for aspects of the test that were not previously available under the prior code stack process. Early signs for fully adjudicated claims under this new mandate, with average insurance payments received from closed cases, including all write-offs and denials for non-coverage, increased over 40%, despite the fact that the proportion of denials has risen.
Credentialing contracts have been executed with four leading U.S. PPOs: Prime Health Services, National Preferred Provider Network/PlanCare America/Ohio Preferred Provider Network LLC (NPPN/OPPN), Galaxy Health Network, and Fortified Provider Network. The Company is actively pursuing further agreements with three other PPOs in order to extend access to an increased number of covered lives.
During the quarter under review, the Company filed further law suits against Natera Inc., HistoGenetics LLC, and General Genetics Corporation, and discussions with these entities are now being pursued. The Company's US attorneys, Sheridan Ross PC, are also preparing additional suits, to be filed when appropriate.
On 29 April and 30 April 2013, respectively, the Company announced that it had executed agreements with PreventionGenetics LLC and Genetics & IVF Institute Inc. The execution of these agreements demonstrates the ongoing activity of the Company's out-licensing programs.
The BREVAGen breast cancer risk stratification test is a novel genetic test panel that examines a patient's DNA to detect the absence or presence of certain common genetic variations (SNPs) associated with an increased risk for developing breast cancer. The test is designed to help physicians assess aggregate breast cancer risk from these genetic markers, plus factors from a standard clinical assessment based on a patient's family and personal history, thus giving a clearer picture of an individual woman's risk of developing breast cancer. The BREVAGen test may be especially useful for women predisposed to hormone dependant breast cancer, including those who have undergone breast biopsies, as the test will provide information that can help physicians recommend alternative courses of action, such as more vigilant, targeted surveillance or preventive therapy, on a personalized patient-by-patient basis.
About Genetic Technologies Limited
Genetic Technologies was an early pioneer in recognizing important new applications for "non-coding" DNA (Deoxyribonucleic Acid). The Company has since been granted patents in 24 countries around the world, securing intellectual property rights for particular uses of non-coding DNA in genetic analysis and gene mapping across all genes in all species. Its business strategy is the global commercialization of its patents through an active out-licensing program and the global expansion of its oncology and cancer management diagnostics portfolio. Genetic Technologies is an ASX and NASDAQ listed company with operations in the USA and Australia. For more information, please visit www.gtglabs.com.
Safe Harbor Statement
Any statements in this press release that relate to the Company's expectations are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act. The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Since this information may involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results. Additional risks associated with Genetic Technologies' business can be found in its periodic filings with the SEC.
FOR FURTHER INFORMATION PLEASE CONTACT
Ms. Alison J. Mew
Chief Executive Officer
Genetic Technologies Limited
Phone: +61 3 8412 7000
Laura Forman (USA)
Blueprint Life Science Group
+1 (415) 375 3340, Ext. 103
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