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In Brief This Week: Quest Diagnostics; T2 Biosystems; OraSure Technologies; DermTech; and More

NEW YORK – In its most recent form 10-Q filed with the US Securities and Exchange Commission, Quest Diagnostics said it paid $275 million for the assets of the laboratory services business of New York-Presbyterian that it acquired in February. 

T2 Biosystems said this week that the Nasdaq Hearings Panel has granted the firm's request for an extension to comply with two Nasdaq listing requirements. T2 Bio will have until Nov. 20 to comply with requirements calling for a closing bid price of $1.00 per share for 10 consecutive business days and a market value of listed securities of at least $35 million for 10 consecutive business days. If the firm does so by the November deadline and it satisfies all other listing criteria, the matter will be closed, T2 Bio said. 

OraSure Technologies reported this week that its second quarter revenues grew 6 percent year over year. For the three months ended June 30, the Bethlehem, Pennsylvania-based firm reported revenues of $85.4 million compared to $80.4 million in Q2 2022. Its core revenues rose 3 percent to $37.9 million from $36.9 million in the year-ago quarter, and its COVID-19 diagnostics revenues rose 9 percent to $47.5 million compared to $43.4 million in Q2 2022. The firm reported a net loss of $4.8 million, or $.07 per share, compared to a net loss of $18.9 million, or $.26 per share, a year ago. It posted non-GAAP EPS of $.09. OraSure ended the quarter with $185.9 million in cash and cash equivalents. 

DermTech reported this week a 7 percent year-over-year decline in its second quarter revenues, driven by lower test revenues. For the three months ending June 30, total revenues were $3.9 million, compared to $4.2 million in Q2 2022, and beating the consensus Wall Street estimate of $3.7 million.

Test revenues were down 14 percent to $3.6 million from $4.1 million, while contract revenues grew to $415,000 from $86,000. During Q2 2023 DermTech's billable sample volume shrank 5 percent year over year to about 17,450, it said.

The San Diego-based company had a net loss of $31.4 million, or $.99 per share for the recently completed quarter, compared to a net loss of $29.6 million, or $.99 per share, falling short of the consensus Wall Street estimate of a loss of $.97 per share. DermTech cut its R&D costs to $3.9 million from $6.9 million a year ago, while its SG&A expenses grew to $28.3 million from $23.9 million. DermTech ended the quarter with $42.8 million in cash and cash equivalents and $43.4 million in short-term marketable securities. 

Karius said that its Karius Test, a microbial cell-free DNA assay designed to identify more than 1,000 pathogens from a single blood draw, has been incorporated into the 2023 Duke-ISCVID Criteria for Infective Endocarditis by the International Society of Cardiovascular Infectious Diseases. The Duke Criteria was introduced 30 years ago by leading medical experts to enhance and standardize the diagnosis of infective endocarditis and has been periodically updated to incorporate technological advances and research discoveries, Karius noted. The latest version for the first time includes hypothesis-free metagenomic sequencing, the technology underlying the Karius Test, the company added. Specifically, it recognizes the high importance of metagenomic sequencing when blood cultures fail to identify a causative pathogen. 

Epigenomics said this week that it plans to reduce its share capital at a ratio of 5:1, or by 80 percent, in order to cover losses and to enable the firm to raise new funds quickly if required. The share capital reduction, which will be proposed at the firm's upcoming extraordinary shareholder meeting on Sept. 11, is anticipated to take effect in early October. Epigenomics, based in Berlin, said last month that it plans to sell almost all its assets to New Day Diagnostics. 

LUNGevity Foundation this week said it launched the Early Lung Cancer Center to accelerate development and adoption of early cancer detection and treatments for patients with lung cancer. The center will focus on screening, early-stage workflows, emerging technologies, and implementation and standardization of workflows for patients with incidental pulmonary nodules. AstraZeneca is a founding sponsor of the initiative. 

Quansys Biosciences and the Michael J. Fox Foundation for Parkinson's Research said this week that they are partnering to accelerate research into the disease. The deal will draw on Quansys' expertise in multiplex ELISAs and MJFF's understanding of Parkinson's to develop new immunoassays for monitoring disease progression and "target engagement for therapeutics in clinical trials." Based in Logan, Utah, Quansys develops multiplex ELISAs. Its proprietary Q-Plex technology enables researchers to access quantitative data quickly and efficiently, it said. 

In Brief This Week is a selection of news items that may be of interest to our readers but had not previously appeared on 360Dx.