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Vermillion Q2 Revenues Up 61 Percent

NEW YORK – Vermillion reported after the close of the market on Thursday that its second quarter revenues were up 61 percent year over year.

For the quarter ended June 30, the company reported total revenues of $1.1 million, up 61 percent from $708,000 a year ago. Product revenues were up 75 percent to $1.1 million from $627,000 in Q2 2018. The company posted $42,000 in service revenue, down 48 percent from $81,000 in the year-ago quarter.

Vermillion performed 3,129 OVA1 tests in the quarter, up 66 percent from 1,884 OVA1 tests performed in Q2 2018. Revenue per test was $352 during the quarter, compared to $333 per test in Q2 2018.

On a conference call following release of the results, Chris Goulart, Vermillion's senior vice president of commercial operations, attributed the jump in revenue and sales volume to the recently completed expansion of the company's direct sales force, noting that the force currently consists of 30 full-time employees covering 20 sales territories.

He noted that early Q3 returns suggest continued momentum, with volume growth in July up more than 70 percent year-over-year. The number of ordering physicians also continues to grow, ramping up from 573 in Q1 of this year to 728 in Q2 and 763 in July.

Goulart added that an important driver of physician uptake is the improved specificity of the company's OVA1+ test, which the company launched in the fall of 2018. According to Goulart, OVA1+ reduces false positives by more than 50 percent compared to the original OVA1 test, addressing what was a major concern with the original assay.

Goulart also highlighted the launch in June of a genetic testing product that includes a hereditary breast and ovarian cancer panel as well as a prenatal carrier screening panel. He added that the company plans a Q1 2020 launch for its next test, a seven-protein panel for monitoring patients with suspected benign pelvic masses who are in surveillance programs.

Vermillion's net loss for the quarter grew to $4.3 million, or $.06 per share, from $3.0 million, or $.04 per share, in Q2 2018.

The company's R&D expenses for Q2 were $225,000, up 46 percent from $154,000 in Q2 2018. Its SG&A expenses rose 55 percent to $4.3 million from $2.8 million in the same period last year.

Vermillion ended the quarter with $16.2 million in cash and cash equivalents.

This week, the company received a delisting warning from Nasdaq indicating that it has failed to meet the requirement that its common stock maintain a minimum closing price bid of $1 per share.

In Friday morning trading on Nasdaq, Vermillion shares were down 19 percent to $.51.