NEW YORK (GenomeWeb) – Cancer Genetics reported today that its fourth quarter revenues grew 32 percent year over year.
For the three months ended Dec. 31, 2016, the company reported revenues of $7.2 million up from $5.5 million in Q4 2015.
The firm's biopharma services business contributed $4.0 million, up 34 percent from $3.0 million in Q4, 2015. Its clinical services unit contributed $3.0 million, up 25 percent from $2.4 million in the prior-year quarter. Discovery services revenues contributed $317,000, essentially doubling year over year and driven by demand for discovery solutions by research institutions where next-generation sequencing is combined with bioinformatics analysis.
"Our business continues to scale, and shows tremendous demand going into 2017," Cancer Genetics President and CEO Panna Sharma said in a statement. "CGI is now working with nine of the top 10 pharma and biotech companies, and has made significant gains in our clinical market share due to our expansion into solid tumors, hereditary cancers, and immuno-oncology."
The firm said that it is involved in more than 125 active clinical trials and studies, and 36 of them are focused in immuno-oncology.
CGI's Q4 net loss narrowed to $2.8 million, or a loss of $.15 per share, from $5.7 million, or a loss of $.48 per share, a year ago.
The firm's Q4 R&D expenses were $1.2 million, up slightly from $1.1 million the year before, while its SG&A expenses were down 20 percent to $5.3 million from $6.7 million.
For full-year 2016, CGI reported that revenues rose 50 percent to $27 million from $18 million in 2015. Biopharma services revenue contributed $15.3 million, up 32 percent from $11.6 million in 2015. Clinical services revenue surged to $10.7 million, up 88 percent from $5.7 million in 2015. Discovery services contributed $1.1 million, up 31 percent over 2015.
The firm's net loss for the year narrowed to $15.8 million, or a loss of $1.00 per share, from $20.2 million, or a loss of $1.96 per share, in 2015.
CGI's R&D expenses for the year rose 9 percent to $6 million from $5.5 million last year, and its SG&A expenses rose 4 percent to $20.7 million from $19.9 million in 2015.
In February, CGI raised $1 million in non-dilutive capital through the New Jersey Technology Business Tax Certificate Program, and on Wednesday it closed $12 million in debt financing. The firm ended the year with cash and equivalents of $9.5 million.
"All categories of our business showed improvement throughout 2016 as we fully integrated our acquisitions, generated greater operating leverage across CGI, and increased market share," Sharma said. "We have also started a major initiative to make our information and molecular data more valuable to both our biopharma customers and healthcare systems. We expect that this big-data and artificial intelligence initiative will further expand our margins while increasing our value to the oncology ecosystem."
CGI said that during 2017, it expects to continue high double-digit growth while continuing to innovate in the development and delivery of precision diagnostics and testing for oncology.
"We believe that we have a clear path towards achieving profitability, and accelerating our market share through partnerships and collaborations in areas that are becoming increasingly critical to the next generation of breakthroughs in patient care," Sharma said.
Among its business highlights for 2016, CGI launched an NGS-based hereditary breast and ovarian cancer panel, an NGS-based panel for enabling precision diagnosis and therapy selection for renal cancers, and an NGS-based panel for precision hematological diagnosis.
The firm announced five agreements and contracts with biotech and pharma customers to develop liquid biopsy tests for a broad range of solid tumors, a market that CGI believes will be worth $20 billion by 2020.
In 2016, the firm also inked a strategic agreement with Lantern Pharma to jointly leverage genomics, biomarkers, and artificial intelligence "to rescue and repurpose drugs for cancer."
In morning trading on the Nasdaq, CGI's shares were up almost 22 percent to $3.53.