Applied DNA Sciences revenue down 28% in Q1 FY20

07 Feb '20

3 min read

Pic: Applied DNA Sciences

Applied DNA Sciences, a leader in polymerase chain reaction (PCR)-based DNA manufacturing for product authenticity, traceability solutions and nucleic acid-based biotherapeutic development and a developer of liquid biopsies has reported decrease in revenues by 28 per cent to $6,34,000 in Q1 FY20 that ended on December 31, 2019 compared to $8,84,000 in Q1 FY19.

This decrease in revenue year over year is due to a decrease of $1,67,000 in service revenue and a decrease of $84,000 in product revenues. The decrease in product revenues was primarily related to a decrease of approximately $2,00,000 in textiles, related to a cotton customer offset by an increase of $1,35,000 in biopharmaceutical revenues.

The decrease in service revenues is primarily attributable to a decrease from a government contract award that ended during FY19. The decrease in product revenues was primarily related to a decrease of approximately $2,00,000 in textiles, related to a cotton customer offset by an increase of $1,35,000 in biopharmaceutical revenues.

Total operating expenses decreased to $3 million for the Q1 FY20, compared with $3.9 million in the Q1 FY19. The decrease is primarily attributable to an approximate $3,52,000 decrease in payroll and a decrease of $93,000 in consulting fees, which are both due to a realignment of the sales force and reductions in overall headcount.

Net loss for Q1 FY20 was $2.7 million compared with a net loss of $3.2 million in Q1 FY19. Compared to Q4 FY19 there was an improvement of 18 per cent and a net loss of $1.2 million.

Company stated that the revenue performance of Q1 FY19 reflects a difficult comparison to the year-ago period, which included revenue related to a Department of Defense contract since completed, as well as company's historical revenue pattern that troughs in Q1 and builds over the balance of the year.

The company's recent operational highlights include, an amendment to its existing joint development agreement with Takis SRL and Evvivax SRL to include pre-clinical development of a potential linear DNA vaccine against 2019-nCoV, the new coronavirus; bolstering its patent portfolio when the US Patent and Trademark Office granted it a US patent that covers methods of tagging man-made cellulosic fibres or materials during production and later authenticating the fibre or materials to confirm provenance and authenticity; a licensing agreement with LifeSensors, whereby company will incorporate LifeSensors' high expression Sumo-fusion technologies into the company's linear DNA amplicons designed and produced for therapeutic applications and Colorcon, launched its on-dose authentication capability utilising the Applied DNA Sciences technology to provide track and trace functionality for supply chain security.

Looking ahead, the company reports to focus on placing greater emphasis on positioning their platform for biotherapeutic and diagnostic applications where there is a growing imperative for company's capabilities while also nurturing key industrials applications to commercial-scale deployments. Company's recently acquired liquid biopsy technology - the iCTC liquid biopsy platform - they believe that it allows them to detect primary cancer tumors often before they are visible to other diagnostic technologies, when preventive care for impending cancer may still be an option. Applied DNA Sciences iCTC platform is potentially transformative to cancer care, and their relationship with Tyme established a partnering model that is applicable to other companies pursuing therapies for such cancers as breast, pancreatic, ovarian, colorectal, among others, that we are actively pursuing.

Fibre2Fashion News Desk (JL)

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