NEW YORK – Grail reported after the close of the market on Tuesday that its third quarter revenues grew 39 percent year over year on strong sales of its blood-based Galleri cancer early detection test.
For the three months ended Sept. 30, its first operating quarter as a public company, Grail tallied $28.7 million in revenues compared to $20.7 million a year ago.
Screening revenue from Galleri testing grew 52 percent to $25.4 million from $16.7 million a year ago, and the company noted that it had sold more than 250,000 Galleri tests as of Sept. 30.
Development services revenue, meanwhile, fell 18 percent to $3.3 million from 4.0 million a year ago.
During the quarter, Grail and its collaborators published a prostate cancer sub-analysis from the company's prior case-control CCGA study and ongoing prospective PATHFINDER trial. Results of the study were published in JCO Precision Oncology and previously shared at the American Association for Cancer Research annual meeting in March. The company noted that the study demonstrated that when Galleri detected prostate cancer, most were high-grade and clinically significant, and usually indicated an aggressive disease where additional diagnostic evaluation is necessary, although these findings were not without criticism.
Grail's Q3 net loss shrank to $125.7 million, or $3.94 per share, from a net loss of $891.5 million, or $28.71 per share, a year ago. Net loss for the recently completed quarter included amortization of Illumina acquisition-related intangible items of $34.6 million and a restructuring charge of $19.0 million.
In August, in conjunction with the release of its second quarter financial results, Grail revealed a restructuring that would reduce its existing workforce and planned hires by around 30 percent while decreasing its investment in other product programs beyond Galleri. million from $80.1 million a year ago, while its SG&A expenses dropped 4 percent to $83.0 million from $86.8 million.
The company finished the quarter with $853.6 million in cash and cash equivalents.
In a statement, Grail CEO Bob Ragusa noted that the company will continue to focus on cost management and work toward completing registrational studies to support a US Food and Drug Administration premarket approval submission and broad payor reimbursement for Galleri.
In mid-morning Wednesday trading on the Nasdaq, shares of Grail were up around 2 percent at $15.36.