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Renalytix Q2 Revenues More Than Doubles, Firm Announces $30M Financing Round

NEW YORK — Renalytix on Thursday said its fiscal second quarter revenues more than doubled year over year.

Separately, it announced a $30.0 million round of financing.

For the three months ending Dec. 31, 2021, the London, UK-based company reported revenues of $845,000 compared to $400,000 in Q2 2021.In Q2, Renalytix saw quarter-over-quarter growth in testing volume for its KidneyIntelX blood-based assay for acute and chronic kidney disease detection.

The company noted that it is now registered as a vendor to enable KidneyIntelX testing services at 16 Veterans Health Administration (VHA) health centers, with additional health centers expected this calendar year.

KidneyIntelX is being used by the VHA, New York physician-led payor program CDPHP, Wake Forest Baptist Health, and Atrium Health system, the firm said.

It is partnering with Singing River Health System to deploy KidneyIntelX to improve kidney health in individuals in the Mississippi Gulf Coast with type 2 diabetes and early-stage chronic kidney disease and has launched the myIntelX national provider access portal for online ordering of KidneyIntelX.

The firm has executed 22 private insurance coverage contracts, including the first regional Blue Cross Blue Shield plans, with additional coverage contracts expected this calendar year. Additionally, 31 state Medicaid programs are now contracted, with additional states expected this calendar year.

Renalytix noted it has a joint program with the American Diabetes Association to improve overall kidney health in patients with type 2 diabetes in the US and is launching regionally focused early-stage kidney disease education programs in partnership with the National Kidney Foundation.

The firm also noted that it also published data in the American Journal of Nephrology demonstrating that KidneyIntelX successfully monitored patient response to new drug therapy during a multinational clinical trial involving 1,325 patients.

Renalytix's net loss in fiscal Q2 rose to $15.3 million, or $.21 per share, from a net loss of $9.1 million, or $.12 per share, a year earlier. It missed the consensus Wall Street estimate of a loss of $.17 per share.

Its Q2 R&D spending jumped 64 percent year over year to $4.1 million from $2.5 million. The increase was driven by employee-related expenses and professional fees associated with utility studies at the Icahn School of Medicine at Mount Sinai, Wake Forest, and University of Utah.

General and administrative spending in the recently completed quarter rose 53 percent year over year to $10.1 million from $6.6 million. The increase was primarily due to a $1.7 million increase in compensation and related benefits, including share-based payments, due to increased headcount, as well as a $1.1 million increase in consulting and professional fees including marketing expenses. The firm also noted a $300,000 increase in employee expenses; a $200,000 increase in computer, software, and information technology costs; and a $200,000 increase in other operating expenses.

At the end of Q2, Renalytix had cash and cash equivalents totaling $39.9 million.

Separately, Renalytix announced a $30.0 million financing round comprising an $8.8 million equity subscription at $7.25 per American Depositary Share per $3.625 per ordinary share and $21.2 million aggregate principal amount of convertible bonds with an issue price of 85 percent of the principal amount, resulting in net cash proceeds of about $18.0 million. It also comprises a 5.5 percent coupon payable in cash or shares at the company’s option and over a five-year term.

Renalytix said the financing will generate gross cash proceeds of $26.8 million. It expects to use the net proceeds from the financing for general working capital purposes and to support expected company growth.

Both the equity raise and convertible bonds transaction are expected to close around April 6.

Shares of Renalytix were up more than 11 percent to $7.96 in early morning trading on the Nasdaq.