AUSTIN, Texas, April 18, 2016 (GLOBE NEWSWIRE) -- Vermillion, Inc. (NASDAQ:VRML), a bio-analytical solutions company focused on gynecologic disease, today announced that the Company has executed a loan of up to $4,000,000 from the Connecticut Department of Economic and Community Development (DECD). Proceeds from the 10-year loan, which bears interest at a fixed rate of 2.0% per annum, will be primarily utilized to fund the build-out of Vermillion’s Trumbull, CT facility including investment in laboratory services and information technology infrastructure.
Under the terms of the agreement, Vermillion may be eligible for forgiveness of up to $2,000,000 of the principal amount of the loan based on certain job creation and retention milestones measured by March 1, 2018.
Under the Agreement, an initial disbursement of $2,000,000 has been made to the Company and the remaining $2,000,000 will be advanced if and when certain future milestones are achieved.
“We are pleased to build a mutually beneficial relationship with the State of Connecticut,” said Valerie Palmieri, President and CEO of Vermillion. “This loan expands our cash balance and operating runway with non-dilutive financing. We look forward to utilizing the proceeds from this loan to make important investments to enhance our Northeast commercialization, strategic partnerships and leverage operating efficiencies.”
Vermillion, Inc. is dedicated to the discovery, development and commercialization of novel high-value diagnostic and bio-analytical solutions that help physicians diagnose, treat and improve gynecologic health outcomes for women. Vermillion, along with its prestigious scientific collaborators, discovers, develops, and delivers innovative diagnostic and technology tools that help women conquer serious diseases. The company’s initial in vitro diagnostic test, OVA1®, was the first FDA-cleared, protein-based In Vitro Diagnostic Multivariate Index Assay, and represented a new class of software-based liquid biopsy in vitro diagnostics. We have improved OVA1 performance by obtaining FDA clearance of Overa™, a next generation blood test to aid physicians in pre-surgical assessment of ovarian tumors for malignancy, using an innovative algorithmic approach. For additional information, including published clinical trials, visit www.vermillion.com.
About OVA1® and Overa™
- OVA1 is a proprietary FDA-cleared blood test to help physicians assess the risk of ovarian cancer prior to surgery and as a result provide early detection and triage of high risk patients to a specialist (gynecologic oncologist) for surgical treatment
- The OvaCalc® proprietary algorithm combines five biomarker results into a single numerical “risk score” that stratifies patients into “higher risk” and “lower risk” when combined with clinical assessment
- In two pivotal clinical trials, OVA1 plus clinical impression detected 96% of all malignancies vs. 75% for clinical impression alone. It subsequently reduced false negatives from 25% to 4%, a reduction of 83%
- For early-stage cancers specifically, on average 31% are missed by clinical impression alone. This was reduced to 5% when OVA1 was added to clinical impression, a reduction of 85%
- Overa, FDA-cleared on March 18, 2016, measures the levels of five proteins found in the blood and then uses a proprietary software called OvaCalc® to calculate a single score. A woman’s risk of cancer is measured by using a 0-10 scale with a single cut-off point of 5 eliminating the ambiguity in determining menopausal status. A high Overa score is not a diagnosis of cancer, rather it indicates an increased risk of malignancy when used as intended.
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant a number of risks and uncertainties, including with respect to Overa and Vermillion’s plans and expectations regarding DECD loan proceeds and the use thereof. Words such as “may,” “expects,” “intends,” “anticipates,” “believes,” “estimates,” “plans,” “seeks,” “could,” “should,” “continue,” “will,” “potential,” “projects” and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this press release are based on Vermillion’s expectations as of the date of this press release. A variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. Factors that could cause actual results to materially differ from those projected in such forward-looking statements include but are not limited to factors that are described in Vermillion’s Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission. Vermillion expressly disclaims any obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this press release, except as required by law.
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