StageZero Life Sciences Ltd. (TSX: SZLS | OTC: GNWSF | FSE: 61N) is a life science and telehealth company that is focusing on launching Aristotle®, which is its next-generation, proprietary clinical test for the early detection of cancer. From one blood sample, it can screen for 10 cancers.
The company is on track to commercially launch the Aristotle® offering in the first quarter of 2021. In advance of the launch, the company has doubled in size since March 2020 and recently raised C$7.2 million to load up the treasury.
With its planned rollout of Aristotle®, StageZero has built a fully integrated telehealth platform that supports its cancer diagnostics program. With the current stay-at-home orders imposed by governments, telehealth has emerged as a viable alternative to access health care and diagnostic services.
Aristotle® Built on a Proven Platform
Aristotle® is built on StageZero’s proprietary Sentinel Principle Technology and validated on over 10,000 patients.
Aristotle® is literally based on 20 years of development work and building up the company’s experiences with other solutions, such as ColonSentry®, a test for colorectal cancer, which was launched in 2019.
To accommodate the step-function growth with its new service, StageZero’s lab has been expanding in both people and equipment to launch the new offering as well as to accommodate its recent Covid-19 testing service.
Cancer Diagnosis – a Billion Dollar Market
The continued rise of cancer cases and deaths has shifted the attention towards the adoption of early detection and diagnosis techniques for cancer, to help lower health costs and increase survival rates.
According to a recent industry report, the Cancer Diagnostics market was valued at US$144 billion in 2020 and is forecasted to reach US$192 billion by 2024, growing by 7.5% annually.
One of the largest growth segments is diagnostic solutions aimed at cancer detection, cardiovascular disease, or eye issues.
Quickly Added Covid Testing in 2020
Last year, to help out during the Covid-19 crisis, StageZero launched a Covid-19 testing service, offering both the serology point-of-care and lab-based polymerase chain reaction (PCR) tests.
StageZero’s Covid-19 testing solution helped to generate revenue of US$1.61 million in the third quarter of 2020. The company forecasted that Covid-19 testing-related revenue should be higher in the fourth quarter of 2020 and even higher in the first quarter of 2021.
The company found success by partnering with over 55 groups including Mercer, UDoTest, and the City of Alpharetta, to name just a few.
For Covid-19 testing, speed and accuracy are paramount and the telehealth infrastructure that StageZero put in place is paying off. The tests are done, packaged up, sent in overnight, processed the next day, and reported back to the patient.
Saliva PCR Test to Help Travel Industry Rebound
Last October, StageZero announced that it launched a saliva-based PCR test that makes it easier for patient sample collection.
The saliva-based PCR test targets the home diagnostic market and for use by companies and communities in remote areas where Covid-19 testing is more challenging.
- On January 13, Ichor Blood Services and StageZero launched a Covid-19 testing program for Canadians returning home from the U.S.
- Last year, StageZero was selected by the Government of Barbados to provide Covid-19 testing services to travelers visiting Barbados from Canada and the U.S.
- Also announced last year, StageZero reported the initiation of testing for travel to China with a Canadian partner.
In the case of the Ichor-StageZero partnership, this testing program allows travelers to take a lab-quality Covid-19 test kit with them to the U.S. and complete their witnessed test remotely prior to returning home.
StageZero is a cancer testing company, capitalizing on its telehealth platform, and should benefit financially in 2021 from the rollout of Aristotle® that is planned for this quarter.
In the meantime, the company has scaled up to meet the demand for Covid-19 testing and this revenue should continue to grow quarter-over-quarter in 2021 as the Aristotle® service rolls out.
With the growing need for both Covid-19 and cancer testing, revenue could double for the company this year.
StageZero closed the week at $1.09, up 6% on the day, and currently has a Market Cap of almost $65 million.