- Financial numbers show revenues stay level, gross margins up and operations expenses down.
- Company continues focus on primary mission of applying artificial intelligence to precision medicine, drug discovery.
- POAI subsidiaries all showing progress, growth in key areas.
Predictive Oncology (NASDAQ: POAI), a knowledge-driven company focused on applying artificial intelligence (“AI”) to personalized medicine and drug discovery, has released its Q3 2020 financial report along with an update of company accomplishments and achievements (https://ibn.fm/HCpQM). In the report, POAI CEO Dr. Carl Schwartz noted milestones for each of the company’s subsidiaries: Helomics, TumorGenesis, Soluble Biotech and Skyline Medical.
“Our operating cash improved over the first nine months of 2020 as a result of an improvement in operating expenses, if the non-cash expense for goodwill impairment is excluded, continued new sales of our STREAMWAY Systems, which provide an annuity-like revenue stream from ongoing sales of disposables, and proceeds from equity offerings, indicating investor confidence in our emerging precision medicine business,” said Schwartz. “Concurrently, we are taking the necessary steps to manage our balance sheet, including reducing our accounts payable and reducing our derivative liability by amending a settlement provision for certain outstanding warrants.
“Management continues to focus the majority of its resources on the company’s primary mission of applying artificial intelligence to precision medicine and to drug discovery,” Schwartz continued. “Our approach and the mediums used to replace rats and mice in preliminary cancer studies are working in three of our operating subsidiaries, Helomics, TumorGenesis and Soluble Biotech.”
In the report, Schwartz noted the following company milestones:
- Signed first contract with a pharmaceutical company for protein expression, solubility studies
- Completed asset purchase of Quantitative Medicine (“QM”), a biomedical analytics and computational biology company
- Sold 15 STREAMWAY(R) systems
In addition, POAI reported its Q3 revenues — $0.5 million — were level with the same quarter last year; revenues were primarily driven by sales of Predictive Oncology’s proprietary STREAMWAY product line. In addition, gross margin was 64% in the third quarter of 2020 compared with 60% in Q3 2019, general and administrative expenses declined 15% to $2.2 million in Q3 2020, and operations expenses slightly decreased in the same period due to lower costs related to staff, including share-based compensation.
Regarding each of POAI’s subsidiaries, Schwartz made the following comments:
- Helomics: “We are making steady progress in our Helomics division with the launch of a restructured clinical test offering to clinicians for ovarian cancer. Our project with UPMC-Magee Womens Hospital, analyzing the genomic and drug response profiles of women with ovarian cancer to build predictive models’ terms of therapy response, is close to completion. We are also in discussions with several pharmaceutical companies about partnerships that will monetize our efforts.”
- Soluble Biotech: “We signed our first contract with a pharmaceutical company for protein expression and solubility studies. Importantly, this win validates our investment in state-of-the-art lab equipment and expanded facilities. We are working judiciously to secure additional contracts with other biotechnology and pharmaceutical companies.”
- TumorGenesis: “We introduced our Ovarian Cell Line Media at the BIO-Europe Digital Conference where numerous researchers learned from us how they can isolate and successfully culture ovarian cancer cells that previously could not be cultured. Cornell University (Weill) Medical School and TumorGenesis are collaborating to help identify the best culture media for the studying of mutations that increase the risk of ovarian, breast and other types of cancers.”
- Skyline Medical: “[This] division continues to be self-sustaining, from an operating cash perspective, as sales of new waste fluid management systems and recurring sales of disposables to support those systems more than cover the operating expenses and capital needs of this segment of our business. Importantly, sustaining and even modestly growing this division provides us with cash we need as we accelerate the precision medicine components of our business.”
POAI is bringing precision medicine, or tailored medical treatment using the individual characteristics of each patient, to the treatment of cancer. Through its Helomics division, the company leverages its unique, clinically validated patient derived (“PDx”) smart tumor profiling platform to provide oncologists with a roadmap to help individualize therapy. In addition, the company is leveraging artificial intelligence and its proprietary database of over 150,000 cancer cases tumors to build AI-driven models of tumor drug response to improve outcomes for the patients of today and tomorrow.
For more information, visit the company’s website at www.Predictive-Oncology.com
NOTE TO INVESTORS: The latest news and updates relating to POAI are available in the company’s newsroom at http://ibn.fm/POAI
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