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HTG Molecular Posts 5 Percent Drop in Q2 Revenues

NEW YORK (GenomeWeb) – HTG Molecular Diagnostics reported on Tuesday a 5 percent drop in second quarter revenues as a decline in consumable sales more than offset an increase in revenues from biopharmaceutical partners.

For the three-month period ended June 30, HTG's revenues slipped to $1.8 million from $1.9 million in the same quarter last year. Service revenues grew to $1.4 million from $1.3 million, while product revenues fell to $407,177 from $577,127.

HTG's second quarter net loss narrowed to $5.8 million, or $.60 per share, from $6.9 million, or $.98 per share, the year before.

R&D spending in the quarter dropped 38 percent to $1.6 million from $2.6 million, while SG&A costs decreased 6 percent to $4.4 million from $4.7 million.

HTG finished the second quarter with $13.4 million in cash and cash equivalents.

"The second quarter was very productive for HTG, highlighted by the expansion of our pharma companion diagnostic pipeline," HTG President and CEO TJ Johnson said in a statement. "We now have three clinical development programs including two in partnership with Qiagen, further validating the combined value proposition that our partnership brings to pharma clients."

In July, HTG and Qiagen began working together to develop next-generation sequencing gene expression profiling assays for multiple undisclosed cancer therapies — the companies' second project under a master assay development, commercialization, and manufacturing agreement.

And today, HTG announced that its EdgeSeq NGS system will be used in combination with Illumina's NGS technology in a clinical study investigating a novel therapeutic approach using a combination of three targeted therapies for the first-line treatment of patients with advanced non-small cell lung cancer (NSCLC).

The trial — called Survival Prolongation by Rationale Innovative Genomics, or SPRING — is being run by the Worldwide Innovative Networking Consortium (WIN) and will enroll NSCLC patients who are usually offered first line platinum-based chemotherapy and who lack documented targetable driver alterations such as EGFR mutations, ALK rearrangements, ROS1, and MET exon 14 skipping mutations. The international study will also test a three drug cocktail — Merck KGaA's avelumab combined with Pfizer's palbociclib and axitinib — as a first-line regimen.

According to HTG, WIN also aims to validate an algorithm designed to match each patient's tumor biology to a specific drug combination, and will test tumor and normal lung tissue biopsies from SPRING participants using EdgeSeq mRNA and microRNA expression panels.

"We are pleased with our growing momentum and expect full year 2017 revenue in the range of $9.0 million to $12.0 million," Johnson added in the statement.

During Wednesday morning trading on the Nasdaq, shares of HTG were down .25 percent at $2.2943. Earlier this month, HTG reported that it has fallen out of compliance with a Nasdaq listing requirement and had until early next year to correct the issue.