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Foundation Medicine Preliminary Q4 Revenues Up 70 Percent

NEW YORK (GenomeWeb) – Foundation Medicine today reported a 70 percent increase in preliminary revenues for the fourth quarter.

For the quarter ended Dec. 31, preliminary unaudited revenues totaled $48.9 million, up from $28.8 million during the year-ago quarter. Analysts, on average, had estimated Q4 revenues to be only $39.2 million. Expected revenues from biopharmaceutical companies are $33.4 million, up from $19 million in Q4 of 2016, and expected revenues from clinical testing are $15.5 million, up from $9.8 million during last year's fourth quarter.

Based on a new reporting structure the company introduced last year, revenues from molecular information services are expected to be $37.4 million, up from $20.4 million in Q4 of 2016. Pharma research and development services revenues are expected to be $11.5 million, up from $8.4 million in Q4 of 2016.

The company reported 6,206 tests to biopharmaceutical companies in Q4. It also reported 20,044 clinical tests to ordering physicians, up 57 percent from 12,788 tests during Q4 of 2016.

For full year 2017, preliminary revenues totaled $152.9 million, a 31 percent increase from $116.9 million in 2016. Expected revenues from biopharmaceutical companies are $99.7 million, compared to $78.8 million in 2016. Anticipated revenues from clinical testing are $53.1 million, up from $38.1 million in 2016.

Based on its new reporting structure, the firm expects $117.1 million in molecular information services revenues for 2017, compared to $81.8 million in 2016. Pharma research and development services revenues are expected to be $35.8 million in 2017, compared to $35.1 million in 2016.

The company reported 67,375 clinical tests to ordering physicians in 2017, up 54 percent from 43,686 in 2016.

CEO Troy Cox said in a statement that the company's "most notable achievement" in 2017 was the completion of the parallel review process, which resulted in approval of its FoundationOne CDx test by the US Food and Drug Administration and a preliminary national coverage determination by the Centers for Medicare and Medicaid Services.

As of Dec. 31, Foundation Medicine had approximately $71.4 million in cash and cash equivalents, including $30 million in credit it obtained in Q4 under its credit facility agreement with Roche Finance.