NEW YORK (360Dx) – OraSure Technologies said after the close of the market on Wednesday that its fourth quarter revenues increased 46 percent year over year.
For the three months ended Dec. 31, 2017, the company reported revenues of $52.0 million compared to $35.5 million for the fourth quarter of the prior year and above the consensus Wall Street estimate of $47.8 million.
In early January, the company said that anticipated revenues for the quarter would be "at least $50 million."
By market, infectious disease testing grew 3 percent year over year to $14.1 million from $13.7 million; risk assessment testing was down 5 percent to $3.1 million from $3.3 million; cryosurgical systems ticked up 3 percent to $3.2 million from $3.1 million; and molecular collection systems increased sharply to $29.8 million from $8.6 million.
Within infectious diseases, OraSure posted HIV testing revenues of $10.1 million, a 24 percent increase over $8.1 million in the year-ago period. In June, OraSure announced a deal with the Bill & Melinda Gates Foundation to make the company's HIV test available in 50 developing countries at a reduced price. The firm said today that it recorded $589,000 in sales of OraQuick HIV self-tests during Q4 2017 related to the deal.
Meanwhile, hepatitis C revenues fell 68 percent year over year to $3.6 million from $11.2 million. In Q4 2016, OraSure recorded $6.1 million in revenues related to an HCV co-promotion agreement it had with AbbVie, which ended on Dec. 31, 2016.
OraSure's R&D spending rose more than threefold to $3.8 million in the recently completed quarter from $1.2 million in Q4 2017. Its SG&A costs dropped 8 percent year over year to $14.5 million from $15.7 million.
The company posted a profit of $7.3 million, or $.12 per share, in Q4 207, compared to a profit of $7.2 million, or $.13 per share, in Q4 2016. It beat analysts' average estimate of $.11 per share.
For full-year 2017, OraSure posted $167.1 million in revenues, up 30 percent from $128.2 million in 2016 and topping the consensus Wall Street estimate of $163.4 million.
Infectious disease testing grew 28 percent year over year to $62.0 million from $48.4 million, while risk assessment testing shrank 3 percent to $12.7 million from $13.1 million. Cryosurgical systems revenues were down 7 percent to $12.3 million from $13.2 million, and molecular collection systems revenues more than doubled to $75.1 million from $32.2 million.
HIV revenues were up 6 percent to $35.1 million compared to $33.1 million in 2016. Revenues related to the Gates Foundation agreement totaled $689,000.
HCV revenues contracted 23 percent year over year to $25.4 million from $33.0 million. The 2016 HCV revenues included $18.9 million from the AbbVie deal, it said.
OraSure grew its 2017 R&D spending 37 percent to $13.4 million from $9.8 million, while its SG&A costs were down slightly to $57.9 million from $58.0 million.
The company recorded a profit of $30.9 million, or $.51 per share, in 2017, compared to a profit of $19.7 million, or $.35 per share, in 2016. The consensus Wall Street estimate for EPS was $.50.
OraSure said it had $72.9 million in cash and cash equivalents as of the end of 2017 and $83.0 million in short-term investments.
For Q1 2018, it anticipates revenues to be in the range of $40.0 million to $41.0 million. The company expects a net loss of $.06 per share for the quarter.
As previously announced, Stephen Tang will become president, CEO, and a board member on March 31, replacing Douglas Michels, who is retiring. Also, Ronald Spair will be retiring as CFO and COO on or before June 30.
Charges associated with the transitions are estimated to be $6.8 million in Q1 2018, OraSure said.
Shares of OraSure dropped around 8 percent to $18.62 in Thursday morning trade on the Nasdaq.