NEW YORK (GenomeWeb) – Chembio Diagnostics reported on Tuesday a 2 percent year-over-year drop in total revenues, with product revenues receding nearly 14 percent.
The company recorded $4.3 million in total revenues for the three months ended Dec. 31, 2016, down from $4.4 million in the year-ago quarter.
Net product sales fell to $3.2 million in Q4 2016 from $3.7 million in Q4 2015, while license and royalty revenues grew to $315,835 from $18,736. R&D, milestone, and grant revenues were up 8 percent to $712,122 from $661,256.
In a statement, ChemBio CEO John Sperzel III attributed the decrease in product sales to a drop in DPP HIV and DPP Syphilis sales in Brazil after a competitor won an award "at an extremely low price point." He further noted the impact of the firm's decision to separate from its previous US distributor for the Sure Check HIV 1/2 assay.
ChemBio's R&D costs grew 47 percent year over year in Q4 2016 to $2.2 million from $1.5 million, while its SG&A expenses were up 38 percent to $2.2 million from $1.6 million.
The firm reported a net loss of $2.6 million, or $.21 per share, for the recently completed quarter, compared to a net loss of $648,984, or $.07 per share, in the year-ago quarter.
The company said that it ended 2016 with $10.6 million in cash and cash equivalents.
For full-year 2016, ChemBio's total revenues were down 26 percent to $17.9 million from $24.3 million in 2015.
Net product sales fell 37 percent to $13.7 million from $21.9 million. License and royalty revenues ramped up to $449,685 from $52,753, and R&D, milestone, and grant revenues grew 61 percent to $3.7 million from $2.3 million.
Its R&D costs increased 31 percent to $8.4 million from $6.4 million, while its SG&A costs were down 1 percent to $7.6 million from $7.7 million.
ChemBio had a net loss of $13.3 million, or $1.26 per share, in 2016, compared to a net loss of $2.4 million, or $.25 per share, in 2015.
Sperzel said that the firm anticipates the US clinical trial for its DPP HIV-Syphilis Assay to be completed during the current quarter. He added that during Q4, ChemBio won a two-year HIV contract with Florida, which is expected to contribute about $1.5 million in revenues this year and next.