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Sophia Genetics Q4 Revenues up 27 Percent

This story has been updated with details from the company's conference call and to provide an updated stock quote.

NEW YORK – Sophia Genetics said Tuesday that its fourth quarter revenues grew 27 percent year over year.

For the three months ended Dec. 31, the Swiss firm with a US base in Boston brought in $17 million in total revenues, up from $13.4 million in Q4 2022.

The company's Q4 R&D costs were $9.8 million, up 44 percent from $6.8 million in the same period of 2022. Its SG&A costs were $21.3 million, up 18 percent from $18.1 million.

Sophia's Q4 net loss swelled to $24.1 million, or $.37 per share, from $14.0 million, or $.22 per share, in Q4 2022.

"During 2023, we were excited to see continued, widespread adoption of Sophia DDM worldwide as the platform performed a record 317,000-plus analyses across the 450 core genomics customers we serve," CEO Jurgi Camblong said in a statement. Sophia DDM is the company's cloud-based platform for analyzing data and generating insights from multimodal data sets and diagnostic tests.

For full-year 2023, Sophia reported total revenues of $62.4 million, a 31 percent boost over $47.6 million for the prior year.

During a call with investors, Camblong said that it has been fulfilling for Sophia as a longstanding AI-driven precision medicine company to see interest in these technologies blossom in 2023. "Since inception 13 years ago, we have invested over $400 million to build some of the most advanced AI capabilities in the healthcare sector," he said.

Regarding the company's progress in now implementing this clinically, he said the firm saw its DDM solid tumor applications, in particular its homologous recombination deficiency (HRD) interpretation technology, undergo 150 percent revenue growth during the period, Camblong said, driven by both existing and new customers.

"By the end of Q4, we were proud to have a total of 129 core genomics customers using solid tumor applications, [including] nearly 50 customers using Sophia DDM for HRD," he added.

In 2024, Camblong said that the company aims to further capitalize on the launch of its new liquid biopsy offering, including the MSK-ACCESS liquid biopsy test powered with Sophia DDM. Sophia partnered with Memorial Sloan Kettering in 2023 to develop disseminated kit versions of the cancer center's MSK-IMPACT and MSK-ACCESS tests and saw a major milestone with the official launch of the ACCESS liquid biopsy kit in December.

"We are pleased with the strong demand we are seeing in the market for this application and are excited by our sales pipeline for it, which is approaching double-digit millions," Camblong said. "As an additional catalyst for the growth of our liquid biopsy applications, we recently announced a collaboration with AstraZeneca, in which they will sponsor the deployment of MSK-ACCESS on Sophia DDM to customers across the globe during 2024."

On the biopharma side, he noted the company's development during 2023 of what it calls Sophia CarePath, an adaptation to Sophia DDM that enables customers to perform longitudinal analyses of multimodal patient data, including modeling designed to predict treatment effects of different therapy decisions.

Toward the end of the year, the firm completed what Camblong called a "momentous project" with an undisclosed biopharma partner that identified a signature in subpopulations of lung cancer patients that was associated with different treatment effects for a specific drug. Moving into this year, he said Sophia plans to expand the footprint of CarePath beyond lung cancer to breast, prostate, and kidney cancer.

Sophia's R&D costs during 2023 totaled $37.0 million, a 5 percent increase from $35.4 million in 2022. The firm's SG&A costs were $81.7 million, down about 3 percent year over year from $84.1 million.

It's full-year net loss was $79.0 million, or $1.22 per share, compared to $87.4 million, or $1.36 per share, in 2022.

The company ended the year with $123.3 million in cash and cash equivalents.

For 2024, Sophia said it expects to see total revenues between $78 million and $81 million, representing growth of 25 percent to 30 percent over its 2023 earnings.

In Tuesday trading on the Nasdaq, shares of Sophia finished down a fraction of a percent at $5.60.