NEW YORK – Interpace Diagnostics reported this morning that its second quarter revenues rose 14 percent year over year, primarily due to the expansion of its existing products in the gastroenterological and endocrine space.
For the three months ended June 30, the Parsippany, New Jersey-based firm reported revenues of $6.3 million, up from $5.5 million in the year-ago quarter but missing the consensus Wall Street estimate of $6.6 million.
Highlights in the recently completed quarter include coverage of Interpace’s ThyGeNext and ThyraMir by Independence Blue Cross in June. Subsequent to the end of Q2, Interpace inked an agreement with Blue Shield of California and Blue Cross of Michigan in July to cover the assays as an in-network service. In addition, Interpace signed an agreement with SelectHealth/Intermountain Healthcare to offer the thyroid cancer detection assays to SelectHealth’s 850,000 members in Utah and Idaho.
“We have over 200 million lives covered in terms of thyroid [cancer], including the recent plans,” Interpace President and CEO Jack Stover said in a conference call with investors after the release of earnings. “A good deal of our effort today is converting those carriers … to contracts as appropriate.”
Interpace also signed an agreement with Helomics in July to leverage ThyGeNext and ThyraMir molecular markers with Helomics' D-CHIP tool to develop products that work together to diagnose and assess the risk for thyroid cancer.
The same month, Interpace purchased Cancer Genetics’ biopharma services business for about $23.5 million, and noted that the acquisition will help secure its future with diversified laboratory services and strong biopharmaceutical customer base.
The firm has partnerships with physicians in Canada, and it believes it has opportunities to expand its services in other western countries. While Interpace currently markets its technology in Israel, Stover said the firm will establish a stronger commercial presence by partnering with external groups in the country.
For Q2 2019, the firm posted a net loss of $5.2 million, or $.14 per share, compared to a net loss of $1.9 million, or $.07 per share, in the year-ago period. The firm fell short of the consensus Wall Street estimate for a loss of $.06 per share.
Interpace's R&D spending rose nearly 25 percent year over year to $647,000 from $518,000 in Q2 2018, while its SG&A costs jumped 50 percent to $5.7 million from $3.8 million.
According to Stover, the higher SG&A costs were due to "continued investments in commercial activities as well as higher professional costs in the period," primarily from Interpace’s February public offering and other costs related to potential future collaborations.
The firm finished the quarter with $4.2 million in cash and cash equivalents.
Interpace increased its full-year 2019 revenue guidance to a range of $33 million to $36 million from its guidance in Q1 of between $27 million and $28 million.
“The remainder of the year will be focused on recognizing synergies and integrating our business to further accelerate growth and diversification as a biopharma and clinical business,” Stover said in a statement.
In Tuesday morning trading on the Nasdaq, shares of Interpace were down nearly 11 percent at $.74.