NEW YORK (360Dx) – Chembio Diagnostics said after the close of the market on Wednesday that its second quarter revenues were up 112 percent over Q2 2017.
For the three months ended June 30, the firm reported total revenues of $8.7 million compared to $4.1 million in Q2 2017, besting analysts' average estimate of $7.8 million.
The firm's net product sales were up 138 percent year over year to $6.9 million from $2.9 million; its license and royalty revenues rose 21 percent year over year to $276,526 from $227,635; and its R&D, milestone, and grant revenues rose 61 percent to $1.6 million from $994,237.
"With the patented [Dual Path Platform] as our foundation, we are expanding our commercial and manufacturing capabilities and strengthening our leadership team to further penetrate the global point-of-care diagnostics market," John Sperzel, Chembio's CEO, said in a statement.
The firm separately announced on Wednesday that Mary Lake Polan, a professor of clinical obstetrics, gynecology, and reproductive sciences at the Yale University School of Medicine, was appointed to the company's board.
In the quarter, the firm advanced to the second phase of a collaboration funded by AstraZeneca to develop a DPP Assay that identifies an undisclosed biomarker. It also entered a collaboration with the Foundation for Innovative New Diagnostics to expedite the feasibility testing of a rapid diagnostic test for the hepatitis C virus.
The firm installed the first automated manufacturing line in its New York facility to reduce costs and increase capacity. And it submitted a dossier to the World Health Organization for the prequalification of its Malaysia facility. Approval would allow manufacturing transfer of certain products, the firm said.
In Q2 2018, the firm's net loss narrowed to $1.7 million, or $.12 per share, compared to $2.2 million, or $.18 per share, in the prior-year quarter, missing analysts' average estimate of a loss of $.07 per share.
Chembio's R&D expenses for the second quarter were flat year over year at $2 million, and its SG&A expenses rose 19 percent to $2.5 million from $2.1 million. The increase in SG&A expenses was primarily associated with higher sales commissions and compensation expense related to a 137 percent increase in net product sales volume, the firm said.
At the end of the second quarter, Chembio's cash and cash equivalents were $9.5 million.