VolitionRx Limited (NYSE American:VNRX), a diagnostics company specializing in in vitro and in vivo diagnostic substances, has disclosed new executive employment arrangements in a recent SEC filing. On Thursday, the company revealed that its subsidiary, Belgian Volition, has entered into an employment agreement with Dr. Gaetan Michel to continue his role as CEO. This agreement, effective since September 1, 2024, supersedes the previous contract with Volition America from September 15, 2021.
The new contract with Dr. Michel is for an indefinite term and includes a monthly salary of €12,000, a 13th-month bonus, a company car, fuel allowance, and potential variable bonuses. Termination conditions follow Belgian law, with severance pay and a non-competition clause also outlined.
Additionally, an amendment to the consulting services agreement between Volition Global Services and 3F Management, effective September 1, 2024, has been made. This amendment allows 3F Management to provide Dr. Michel's services to the company and its subsidiaries. The monthly fee for these services is set at €12,797, increasing in November 2024, with eligibility for performance-related bonuses.
In other recent news, VolitionRx Limited, a biotechnology firm, reported significant growth in its Q2 2024 earnings with an 83% year-over-year increase, totaling approximately $396,000. The company also noted the successful launch of the Nu.Q Vet cancer test, which outperformed the prior year's total sales in just the first half of 2024. In addition to these developments, VolitionRx is in the process of negotiating its first licensing deal in the human health sector, facilitated by PharmaVentures.
Further, VolitionRx has made its oncology assets available for out-licensing as part of a strategic initiative to collaborate with other healthcare entities. This move could potentially allow the company to capitalize further on its scientific advancements while enabling other companies to bring new diagnostic solutions to market.
These recent developments come as VolitionRx continues to make strides in its product offerings and research. The company reported promising preliminary results from clinical trials for oncology and sepsis. VolitionRx also raised approximately $21.5 million through a registered direct offering of common stock and warrants.
Looking ahead, VolitionRx aims to become cash flow positive by 2025 and is implementing cost reduction measures. The company also plans to present a paper focusing on lung cancer at the ESMO conference in September 2024 and will report clinical study results at the European Society of Intensive Care Medicine conference in October.
InvestingPro Insights
Recent InvestingPro data offers additional context to VolitionRx's financial position and market performance. The company's revenue for the last twelve months as of Q2 2024 stood at $0.98 million, with a remarkable revenue growth of 88.32% over the same period. This aligns with one of the InvestingPro Tips, which indicates that analysts anticipate sales growth in the current year.
Despite the positive revenue trajectory, VolitionRx faces some financial challenges. The company reported an operating income of -$32.77 million and is not profitable over the last twelve months, as highlighted by another InvestingPro Tip. This financial situation may explain the need for clear executive compensation structures, as detailed in the recent SEC filing.
The stock's recent performance has been challenging, with a -15.15% return over the past week and a -19.93% return over the last month. This market reaction could be influenced by the company's current financial status and investor sentiment regarding its growth prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 10 additional InvestingPro Tips available for VolitionRx, which could provide valuable perspective on the company's financial health and market position.
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