NEW YORK – Diagnostics firm Oncocyte said after the close of the market on Tuesday that it saw $503,000 in revenues during the fourth quarter compared to none a year ago and falling short of the Wall Street analysts' average expectation of $820,000.
The Irvine, California-based company said it derived these revenues from pharma services performed by its subsidiary Insight Genetics, and from the DetermaRx test it launched last year.
Test volumes were up 36 percent sequentially to 238 samples for the three months ended Dec. 31, 2020, the company said, adding DetermaRx revenues grew 58 percent sequentially.
"In a short time, we have transformed Oncocyte from a single-product, development-stage company into a commercial-stage oncology diagnostics company with a broadening product portfolio and multiple engines of revenue growth," company President and CEO Ron Andrews said in a statement.
During 2020, the company completed its first commercial test launch, and completed important clinical studies for its immune therapy selection assay DetermaIO, slated to become its second clinical product in the second half of 2021, with additional assays DetermaTx and DetermaCNI to follow.
On a call discussing the company's financial results, Andrews estimated that Oncocyte has engaged with approximately 3,000 health professionals through its early commercial promotion of DetermaRx.
"By year's end we had onboarded 87 hospitals and now have broad adoption at very prestigious national comprehensive cancer centers, as well as National Cancer Institute hospital sites. Most recently, we added Virginia Cancer Specialists, which is part of the US Oncology Network, a network of 900 physicians treating over 1 million patients annually," he said, adding that the company has also recently expanded its sales team to 10 individuals.
Andrews also highlighted Oncocyte's December announcement of a strategic agreement with Burning Rock Biotech to distribute DetermaRx in China, where he estimated that early-stage lung cancer incidence represent a market approximately six times that of the US.
For Q4 2020 Oncocyte had a net loss of $6.3 million, or $.09 per share, down from a net loss of $8.0 million, or $.15 per share, in the same period of 2019.
Wall Street analysts, on average, had expected a per-share loss of $.11.
Oncocyte's Q4 R&D costs dropped 22 percent to $1.8 million from $2.3 million in the same period of 2019, reflecting reduced clinical trial expenses for the DetermaDx. Its SG&A expenses for the quarter were up slightly at $5.3 million compared to $5.2 million a year ago.
For full-year 2020, Oncocyte's revenues were $1.2 million compared to none in 2019, falling short of Wall Street analyst's average estimate of $1.5 million.
Its net loss rose to $29.9 million, or $.46 per share, from a net loss of $22.4 million, or $.44 per share, in 2019. Analysts, on average, expected a loss per share of $.48.
The company's R&D costs for the year rose 44 percent year over year to $9.8 million from $6.8 million, and its SG&A expenses were up 51 percent at $23.3 million compared to $15.4 million in 2019, primarily due to personnel growth, spending related to the ramp up in sales and marketing activities for DetermaRx, and market development investments in preparation for the launch of new products in 2021.
Oncocyte ended the year with $7.1 million in cash and cash equivalents, and $675,000 in marketable securities.