NEW YORK (GenomeWeb) – Natera said after the close of the market on Wednesday that its third quarter 2016 revenues climbed 20 percent year over year.
For the three months ended Sept. 30, the molecular diagnostics firm brought in $53.9 million in revenues compared to $44.9 million in Q3 2015, and beating analysts' average estimate of $48.1 million.
Revenues were driven primarily by running more of its Panorama noninvasive prenatal tests and Horizon carrier screening tests. Natera accessioned more than 84,000 Panaroma tests in the quarter, compared to 67,000 in the year ago quarter. It also accessioned more than 20,000 Horizon tests compared to 13,000 in Q3 2015.
"We are making strong progress growing the NIPT and carrier screening business, and towards achieving broader reimbursement of NIPT in the average risk setting," Natera CEO Matt Rabinowitz said in a statement. Coverage policies that include average risk pregnancies now represent more than 90 million covered lives.
During a conference call discussing the company's third quarter performance, Rabinowitz said that although the firm's average per-test reimbursement has dropped as the company has moved to in-network status on commercial insurance plans, it has mitigated "that impact by driving more business from our most profitable accounts." As such, revenue generated from Panorama grew 12 percent to $38.2 million in the quarter from $34.2 in the previous year quarter, while revenue from Horizon grew 95 percent to $12.3 million from $6.3 million.
Natera's net loss in the quarter was $26.0 million, or $.50 per share, compared to a net loss of $17.6 million, or $.39 per share, in the year-ago quarter. It beat Wall Street's average estimate of a $.55 loss per share.
Natera's R&D expenses were $11.3 million in Q3 2016, up from $7.3 million in Q3 2015. Its SG&A expenses also rose to $34.9 million from $27.9 million in the year ago quarter.
Natera finished the quarter with $25.3 million in cash and cash equivalents and $157.7 million in short-term investments.
For the full year 2016, Natera said it anticipates $215 million to $220 million in revenue.
On Thursday morning, Natera's stock was up 15 percent, trading at $11.00.