NEW YORK – CareDx reported after the close of the market on Thursday that its third quarter revenues rose 58 percent year over year, thanks largely to a 61 percent increase in testing services revenues.
For the three months ended Sept. 30, the molecular diagnostics company reported total revenues of $53.4 million, up from $33.8 million during the same period a year earlier, edging out the average Wall Street estimate of $53.0 million and its own preliminary Q3 revenue report of $53 million from earlier this month.
Testing services revenues rose to $45.5 million from $28.2 million in the prior-year quarter, while product revenues rose 29 percent to $5.4 million from $4.2 million. Digital and other revenues rose 79 percent to $2.5 million from $1.4 million in Q3 2019.
Separately, CareDx also announced that current Chairman and CEO Peter Maag will assume the role of executive chairman of the board, effective Nov. 1, and that current President and Chief Business Officer (CBO) Reginald Seeto will take over as president and CEO. Seeto will also join the firm's board.
Maag joined CareDx in 2012 as CEO and led the company through its IPO. Seeto joined CareDx in 2018 as president and CBO, leading the company's commercial, clinical, manufacturing, and R&D organizations.
"Our team continues to deliver the winning formula for CareDx. Beginning with a decision to drive our initiatives with a singular focus on transplantation, we continue to execute on our objectives and achieve tremendous results as we march forward with our mission to improve transplant patient care," Maag said in a statement. "We truly have an imminent opportunity to make our solutions be the standard of care for transplanted organ surveillance, and our efforts are centered on making this a reality."
CareDx said it returned more than 21,800 patient results from its AlloSure Kidney blood-based, donor-derived, cell-free DNA test for organ transplant rejection and AlloMap Heart transplant test to patients in Q3. On a conference call with analysts following the release of the earnings, Seeto noted that this was a 65 percent year-over-year increase.
He also said that around 150 transplant centers are offering the RemoTraC mobile phlebotomy service to their patients, and that more than 5,000 kidney, heart, and lung transplant patients have enrolled in the program to date. CareDx launched RemoTraC in early April to provide blood draws of routine transplant tests at home.
Further, Seeto said, while product revenues rose during the quarter, that business has been "negatively impacted by the global pandemic because hospitals and transplant laboratories across the US and Europe continue to restrict access to their facilities for some non-essential personnel."
The firm's Q3 net loss widened to $2.8 million, or $.06 per share, from $1.8 million, or $.04 per share, in Q3 2019. On an adjusted basis, the company reported earnings of $.10 per share for the quarter, beating analysts' consensus expectation for a loss of $.06 per share.
CareDx's Q3 R&D costs rose 47 percent to $12.5 million from $8.5 million in the year-ago quarter, and its SG&A expenses rose 31 percent to $27.0 million from $20.6 million.
The company ended the quarter with $213.8 million in cash and cash equivalents.
CareDx said that while it experienced improved trends in the third quarter, it won't be providing guidance because of the continued uncertainties with respect to the COVID-19 pandemic.