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Genetron Health Posts 40 Percent Jump in Q2 Revenues

NEW YORK — Genetron Health on Thursday reported a 40 percent year-over-year rise in revenues for the second quarter on strong sales from its cancer diagnosis and monitoring operations, which include lab-developed tests (LDTs) and in vitro diagnostics (IVDs).

Beijing-based Genetron, which went public in the US in June to raise $235.0 million, posted second quarter revenues of RMB101.7 million ($14.6 million) versus RMB72.5 million in the year-ago period.

LDT service revenues were up nearly 31 percent to RMB75.8 million in the quarter from RMB58.0 million in Q2 2019, with Genetron reporting a 15 percent increase in the number of LDT tests sold to 6,700. IVD product sales rose 376 percent to RMB18.1 million from RMB3.8 million on higher sales of the firm's Lung 8 lung cancer assay and other tests, as well as sequencing platforms including the recently launched S5 system.

Revenues from development services, however, sank 28 percent to RMB7.8 million for the three-month period ended June 30 from RMB10.8 million a year earlier. Genetron attributed the decline to lower sequencing service revenues as it shifts its focus to biopharmaceutical services.

Genetron's net loss in the quarter climbed to RMB2.83 billion, or RMB17.04 per share, from RMB135.7 million, or RMB1.09 per share, in the second quarter of 2019. Non-IFRS EPS for the recently completed quarter was RMB.26.

R&D spending in the quarter jumped 55 percent to RMB29.8 million from RMB19.2 million, while selling and administrative expenses declined 5 percent RMB88.5 million from RMB93.0 million.

At the end of June, Genetron had cash and cash equivalents totaling RMB1.84 billion.