NEW YORK – NeoGenomics on Tuesday reported a 20 percent year-over-year increase in its third quarter revenues, primarily due to higher testing volume.
For the three months ended Sept. 30, total revenues reached $125.4 million, up from $104.7 million in Q3 2019, but short of the consensus analysts' estimate of $126.2 million.
Clinical services revenues rose 17 percent to $108.7 million from $92.6 million a year ago, while pharma services revenues rose 38 percent to $16.7 million from $12.1 million. The increase in clinical services was primarily driven by COVID-19 PCR testing revenue of $17 million, the Fort Myers, Florida-based company said.
In NeoGenomics' clinical operations, clinical test volume grew 2 percent year over year to 255,458 tests performed from 250,518 , and requisitions rose also about 2 percent to 147,518 in the recently completed quarter from 145,312 a year ago. The average revenue per test fell 3 percent to $359 from $369.
"Third quarter results were strong as we bounced back nicely from a challenging second quarter and set new company records for quarterly consolidated revenue and pharma services revenue and backlog," Douglas VanOort, chairman and CEO of NeoGenomics, said in a statement. "Importantly, test volume in our core clinical oncology business continued to trend higher on what looks to be a V-Shaped recovery and the majority of our pharma clients' clinical trial sites are now open."
The firm also noted on the call that it has increased its global laboratory footprint by expanding its collaboration with PPD to launch a lab in Suzhou, China in 2021. Announced earlier this month, the firm hopes to add capabilities to Greater China-based trials, as well as support global activities and trials.
In Q3 2020, the company's R&D spending dropped 23 percent to about $2.0 million from $2.6 million in Q3 2019, while its sales, marketing, general, and administrative costs rose 6 percent to $47.4 million from $44.6 million. The operating increase reflected investments in informatics, growth initiatives ,and costs associated with the integration of the oncology division of Human Longevity.
NeoGenomics posted a net profit of $2.6 million, or $.04 per share, during Q3 2020 compared to a profit of $2.1 million, or $.02 per share, a year ago. Its adjusted EPS for the quarter was $.06 and beat the consensus Wall Street estimate of $.04 per share.
NeoGenomics finished Q3 with $233.2 million in cash and cash equivalents, and $50.4 million in marketable securities.
In early morning trading on the Nasdaq, NeoGenomics' shares slid about 2 percent to $41.26
Earlier this month, NeoGenomics joined a consortium with other firms to accelerate aspects of SARS-CoV-2 testing.