NEW YORK (GenomeWeb) – HTG Molecular Diagnostics said that it expects to report up to a 380 percent increase in its fourth quarter revenues amid increased revenues from collaborations.
For the three-month period ended Dec. 31, 2017 HTG said it anticipates revenues in the range of $6.9 million to $7.2 million, representing a 360 percent to 380 percent increase over the $1.5 million in revenues generated in the fourth quarter of 2016. Revenues for the full-year 2017 are expected to be between $13.8 million and $14.1 million, up between 171 percent and 176 percent over the $5.1 million in revenues HTG recorded during 2016.
The company attributed the anticipated revenue growth to its collaborations, which include an ongoing project with Qiagen to develop next-generation sequencing gene expression profiling assays for multiple undisclosed cancer therapies and a recently expanded companion diagnostic alliance with Merck KGaA.Â
"Our strategy of developing high-value diagnostic tests through our collaborations with Qiagen and top-tier biopharmaceutical companies is a primary reason for the strong revenue growth we saw in 2017, and helped propel us to a strong year end," HTG President and CEO T.J. Johnson said in a statement. "We expect this momentum to continue and believe our clinical and preclinical collaborations, along with our independent development programs, will support continued revenue growth in 2018."
HTG also said that it expects its fourth quarter operating expenses to be slightly higher on an absolute dollar basis than the $7.7 million in total operating costs in the third quarter. Its Q4 net loss, however, is expected to be lower than the $5.4 million net loss in the previous quarter as a result of collaboration profit-sharing revenue expected to be recognized in the fourth quarter.
HTG expects to report roughly $10.0 million in cash as of the end of 2017, and said 2018 revenues will likely be in the range of $20.0 million to $25.0 million.
HTG expects to report its final 2017 financial results on March 22.