NEW YORK (360Dx) – Opko Health said after the close of the market on Tuesday that total revenues shrank 12 percent year over year during the second quarter as revenues from the transfer of intellectual property retreated 58 percent.
For the three months ended June 30, Opko recorded $314.2 million in total revenues, down from $357.1 million in Q2 2016.
Service revenues were down 3 percent year over year to $256.7 million, compared to $266.0 million a year ago, while product revenues grew 27 percent to $29.0 million from $22.8 million. Revenues related to the transfer of IP fell to $28.5 million from $68.3 million.
During the second quarter, GeneDx, the genetic testing unit of Opko business BioReference Laboratories, extended an existing relationship with the University of California Health System to offer genetic, genomic, and molecular testing services. In a statement on Tuesday, Opko said the BioReference business is "well-positioned" to accelerate revenue growth through the second half of 2017 and 2018
Opko also said that it has completed clinical trials of the Claros point-of-care prostate specific antigen test and anticipates filing a premarket application with the US Food and Drug Administration during the fourth quarter of 2017. The firm added that it expects to start an additional multiclinic study of its POC testosterone test in late 2017 or early 2018, followed by a 510(k) submission to the FDA.
During the second quarter, Opko increased its R&D spending 4 percent year over year to $32.6 million from $31.3 million, and upped its SG&A spending 9 percent to $128.3 million from $117.5 million.
The firm posted a loss of $17.5 million, or $.04 per share, compared to a profit of $15.5 million, or $.02 per share, in the year-ago period.
Opko finished the quarter with $130.5 million in cash, cash equivalents, and marketable securities.
In early morning trading Wednesday on the Nasdaq, Opko shares rose almost 4 percent to $6.37.