NEW YORK (GenomeWeb) – MDxHealth reported today that its first quarter revenues rose 50 percent, thanks to a 55 percent increase in total test volumes.
For the three months ended March 31, the molecular diagnostics company said revenues rose to $9.7 million from $6.5 million in Q1 2017. Included in the total revenue for Q1 was a license fee payment of $500,000. Product revenues from the firm's ConfirmMDx and SelectMDx tests for prostate cancer amounted to $7.9 million and rose 60 percent from $4.9 million a year earlier.
Revenues from ConfirmMDx, which is meant to address false-negative biopsy concerns, represented 91 percent of product revenues, the company said. Total global patient test volume for ConfirmMDx grew 51 percent to almost 5,800 in Q1 from 3,800 in the same period last year, including 640 tests associated with clinical studies initiated in 2017. Total global commercial test volumes from SelectMDx, which helps identify patients at increased risk for aggressive disease, grew 62 percent in the quarter to 3,500 from 2,100 in the same period last year, excluding an additional 1,000 non-billable study cases. Total test volumes for Q1 grew 55 percent to 9,263 from 5,990 in Q1 2017.
The firm also said it signed four new US payor contracts for ConfirmMDx, including two with Blue Cross Blue Shield Association licensees, and it signed two new US military hospitals payor contracts for SelectMDx.
"In the first quarter of 2018, we delivered strong growth in both patient test volumes and revenues. In particular, we are very pleased with the 50 percent growth of ConfirmMDx volumes compared to Q1 2017," MDxHealth CEO Jan Groen said in a statement. "In line with our growth strategy, we are also seeing strong volume growth for our liquid biopsy test SelectMDx, with volumes nearly tripling in Europe. Going forward, we expect the recent inclusion of this product in the European Association of Urology clinical guidelines to contribute to continued growth and adoption of the test in Europe."
MDxHealth's Q1 net loss widened to $6.7 million from $5.8 million in the prior year.
The firm ended the quarter with $51.3 million in cash and cash equivalents, and said it raised $44 million in gross proceeds through a private placement of nearly 10 million new shares at an issue price of €3.60 per share in March.
"Despite a strong first quarter, we do not yet have full visibility on revenue projections going forward, however, we remain confident in the positive outlook for the year and achieving higher levels of testing volume and product revenue compared to 2017. We will continue to keep the market updated as the year progresses," Groen said.