NEW YORK (GenomeWeb) – Cancer Genetics (CGI) reported on Thursday that its third quarter revenues grew 19 percent year over year as the company narrowed its net loss.
For the three months ended Sept. 30, the Rutherford, NJ-based molecular diagnostics firm had revenues of $8.0 million compared to $6.8 million in the year-ago period. Analysts, on average, had expected revenues of $7.9 million.
CGI's biopharma services revenue grew 10 percent year-over-year to $4.2 million, while its clinical services revenue increased 7 percent to $2.9 million. The company also reported $1.0 million in discovery services in the quarter. Third-quarter test count increased 11 percent year-over-year to 13,726, bringing total year-to-date test count to 40,451. Total clinical services test volumes increased to 7,373 from 7,334 tests in Q3 2016.
The company booked $8.2 million in new contracts from biotech and pharma customers, compared to $3.5 million in the year-ago period, an increase of 134 percent.
This record contracted revenue is "illustrative of the high value the biopharma industry puts on the expertise that CGI brings to drug development, as well as the strategic focus of the company to be the premier partner for drug discovery and development in oncology," CGI President and CEO Panna Sharma said in a statement. "We are extremely proud to be actively working with nine of the top ten biopharma companies, which is a testament to our unique business model and capabilities," Sharma added.
During the quarter, CGI launched AntigenID, a neoantigen discovery service offering designed to accelerate immuno-oncology drug development. In addition, the company launched a US Food and Drug Administration-approved universal companion diagnostic for lung cancer using Thermo Fisher Scientific's next-generation sequencing Oncomine Dx Target Test.
CGI shaved its net loss to $633,000, or $.15 per share, from $3.7 million, or $.23 per share a year ago. Analysts had expected a loss per share of $.12. Net loss was primarily impacted by a non-cash adjustment of $2.8 million related to the valuation of derivative warrant liabilities.
The company's R&D expenses fell 38 percent to $981,000 from $1.6 million in Q3 2016, while its SG&A expenses rose 19 percent to $5.6 million from $4.8 million a year ago.
CGI finished the quarter with $4.8 million in cash and cash equivalents.
In August the company entered into a common stock purchase agreement with Aspire Capital Fund, through which Aspire has committed to purchase up to an aggregate of $16 million of CGI common shares (of which $3 million was drawn on Aug. 15) over a two-year period, subject to certain transaction-related conditions.