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MDxHealth 2019 Revenues Fall 58 Percent

NEW YORK – Molecular diagnostics company MDxHealth reported on Wednesday that its fiscal year 2019 revenues fell 58 percent year over year, largely due to a 59 percent decline in product revenues.

For the year ended Dec. 31, 2019, the company said total revenues fell to $11.8 million from $28.4 million a year earlier. Revenues for 2019 were affected by a one-time adjustment of $10.1 million following a significant change of estimates primarily related to management's decision to reduce the length of time it carries accounts receivable from 24 months to 12 months. Excluding this one-time adjustment, 2019 revenues would have been $21.9 million on a pro-forma basis, a 23 percent decrease from 2018.

Product revenues fell to $11.4 million in FY 2019 from $27.7 million in 2018. On a pro-forma basis, product revenues fell 22 percent in 2019 to $21.5 million. Revenues from royalties, patents, and other income fell 50 percent in 2019 to $342,000 from $687,000 in 2018.

For the fourth quarter, billable test volume for the company's ConfirmMDx prostate cancer test rose 22 percent to 5,158 from 4,219 for the same period last year. But billable test volume fell 5 percent in FY2019 to 18,195 from 19,194 in 2018. Revenues from ConfirmMDx represented more than 90 percent of product revenues in 2019, the company said.

For Q4, global billable test volume for the company's SelectMDx prostate cancer test rose 14 percent to 4,898 from 4,294 in Q4 2018. For the year, SelectMDx global billable test volume rose 61 percent to 21,669 from 13,447 in 2018.

"2019 has been a transformational year for MDxHealth, focused on assessing our business and operating execution with the goal of demonstrating evidence of the turnaround required to deliver results that are sustainable and will build value for all of our stakeholders," MDxHealth CEO Michael McGarrity said in a statement. "We are confident that evidence of this turnaround is reflected in our results and 2020 outlook."

Cash collections from ConfirmMDx and SelectMDx amounted to $23.7 million, a decrease of 11 percent from 2018.

The firm's net loss for the year widened to $43.1 million, or $.69 per share, from $32.5 million, or $.56 per share, in 2018. On a pro-forma basis, MDxHealth reported a loss of $33.0 million, or $.53 per share, for the year.

At the end of December, MDxHealth had cash and cash equivalents of $22.1 million.

For 2020, the company is expecting revenues of $27 million to $30 million. MDxHealth is also projecting growth of 20 percent to 25 percent in ConfirmMDx billed unit volume and growth of 25 percent to 30 percent in SelectMDx global billed unit volume.