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NorDiag Q2-2008: Prototype of new cancer test completed

20 August 2008: NorDiag states today in its quarterly report that the prototype for its new test for colorectal cancer has been completed. `This is a major step towards market introduction of Genefec III,` says CEO Mårten Wigstøl. The clinical validation is scheduled to be finished in October this year. The plan is to introduce Genefec III in the market in first quarter 2009.

Infectious diseases had a growth of 26 per cent in Q2 compared to last year. The first sales contract in US was signed with ARUP Laboratories, a national clinical and anatomic reference laboratory in US with more than 2000 employees. The contract can lead to more instrument and reagent revenues from ARUP and other laboratories with similar needs.

The business area is expected to continue its positive development going forward. Completion of STI running clinical trials for Roche`s Taqman 48 and BD`s Probetec are scheduled for October. New instrument sales (Bullets) are expected to accelerate based on results from these trials, and launch of the desk-top instrument (Arrow) with four unique applications can further increase sales.

The focus in the Cancer business has been to develop a new test that contributes to early detection of colorectal cancer (CRC). Preliminary testing shows a promising sensitivity and specificity. The test is cost efficient and complementary with today`s FOBT test. It will be in a kit format with associated instruments for automation.

An important element of the test is successful isolation of human DNA from stool, and initial testing shows a success rate of >90%. The company`s kit for isolating human DNA from stool may also be integrated with other partner`s tests and sold on a standalone basis.

`It is important for us to get back in the market for CRC testing and the achievements in second quarter have been a major step in that respect. The clinical validation is scheduled to be finished in October this year. If successful, the test will be introduced in the market in first quarter 2009 as a lab service and later as a CE marked kit says CEO Mårten Wigstøl`.

Main figures in the Q2/First half year report:
NorDiag had operating revenues of NOK 6.6 million and other revenues of NOK 1.7 million in the first half of 2008, compared with NOK 5.3 million and NOK 1.6 million in 1H-2007. Corresponding figures in Q2-2008 were NOK 3.2 million and NOK 0.6 million, and in Q2-2007 NOK 3.7 million and NOK 0.9 million respectively. EBITDA in 1H-08 was NOK - 17.2 million compared to NOK - 25.1 million in 1H-07, and NOK - 7.9 million in Q2-08 and NOK - 14.5 million in Q2-07. Healthy growth in income in business area Infectious diseases and effect of implemented cost cutting program explains the improvement of the results.

Net cash flow in Q2-08 was NOK - 12.6 million, giving cash balance at the end of 1H-08 of NOK 11.6 million. A total of 15 113 744 new shares were subscribed for in the rights issue decided in June and closed in July. The increase in equity gave available cash of NOK 27.2 million in Q3-08. See for further information.

Full quarterly report and presentation are attached.

Contact: CEO Mårten Wigstøl               Phone. +47 911 65775

Read the Notice and the quarterly report on OSE's Newsweb

Read the Stock Exchange Notice in Norwegian