NEW YORK – CareDx reported after the close of the market on Thursday that its first quarter revenues rose 18 percent year over year.
For the three months ended March 31, the South San Francisco, California-based molecular diagnostics company reported total revenues of $79.4 million, up from $67.4 million during the same period a year earlier, and beating the average Wall Street estimate of $78.9 million.
"We are proud to lead with innovation, and as a company 100 percent dedicated to transplant, to be champions of patient care and science, and to fight for truth for the transplant community," said Reg Seeto, CareDx's president and CEO, in a statement.
CareDx's testing services revenues increased 12 percent to $66.4 million from $59.3 million in the prior-year quarter, while product revenues rose 17 percent to $6.8 million from $5.8 million. Digital and other revenues more than doubled to $6.2 million from $2.3 million in Q1 2021.
In an investor call, Seeto said that these revenues were driven largely by the recent acquisitions of MedActionPlan and The Transplant Pharmacy.
The firm said it returned approximately 42,600 results from its AlloSure Kidney blood-based, donor-derived, cell-free DNA test for organ transplant rejection and AlloMap Heart transplant test in Q1, with March marking the most tests in one month in the firm's history.
In the quarter, CareDx announced the availability of XenoSure and XenoMap, which it said are the world's first surveillance solutions for investigational use in xenotransplantation research and post-xenotransplant clinical monitoring.
The firm's Q1 net loss ballooned to $19.6 million, or $.37 per share, from a loss of $687,000, or $.01 per share, in Q1 2021. On an adjusted basis, the company reported a loss of $.13 per share for the quarter, below analysts' consensus expectation for a loss of $.05.
CareDx's Q1 R&D costs increased 37 percent to $21.9 million from $16.0 million in the year-ago quarter, and its SG&A expenses jumped 62 percent to $49.7 million from $30.7 million.
"This increase in expenses, was driven by investments in R&D and commercial, where we added resources in our clinical and research teams, as well as commercial resources with dedicated cardiothoracic and abdominal teams," said Ankur Dhingra, the firm's CFO. "Our legal expenses increased tied to the false advertising trial, where we received a positive jury award in our favor of over $44 million."
"We expect legal expenses to remain elevated this year," he added.
The company ended the quarter with $171.9 million in cash and cash equivalents, and $147.3 million in marketable securities.
For full-year 2022, CareDx reiterated revenue expectations in the range of $330 million to $350 million. Analysts, on average, are expecting revenues of $342.2 million for the year.
In Friday morning trading on the Nasdaq, shares of CareDx were down approximately 17 percent at $26.34.