DiagnoCure restructures into 2 segments

DiagnoCure (TSX: CUR) has announced a reorganization into two business segments — an administrative headquarters in Quebec City to hold its patents and DiagnoCure Oncology Laboratories, its U.S. sales, marketing and service laboratory operations.

As part of the realignment, CEO John Schafer will relocate to the U.S. to lead the commercialization of the Previstage GCC colorectal cancer test on lymph nodes and to grow the lab franchise into a “profitable, full service specialty laboratory, featuring diagnostic tests for colorectal cancer.”

In a statement, Mr. Schafer said the “need for specialty service cancer laboratories in the United States is growing, and with new molecular diagnostic tests, the ability to fill that need is available.”

The Company said it will focus its product development on the pivotal VITAR clinical study designed to confirm the clinical value of the Previstage test. As part of the realignment, Dr. Yves Fradet, currently chairman, will become president of DiagnoCure, effective immediately.

The realignment, coupled with a selective reduction in personnel, is expected to allow DiagnoCure to “preserve all the liquidity necessary to support its operations until the sales of Previstage GCC ramp up and the PCA3 test is approved for sale in the U.S.,” it said, adding that approval is expected in 2011.