NEW YORK (GenomeWeb) – Veracyte reported after the close of the market on Tuesday that its first quarter 2019 revenues grew 47 percent year over year.
For the three months ended March 31, the genomic testing firm reported total revenues of $29.5 million, compared to $20.0 million in Q1 2018, beating analysts' average estimate of $27.6 million.
In addition, the firm's testing volumes grew by 33 percent year over year, to 9,162 tests.
"Product revenue and genomic volume both grew significantly in the quarter, and our biopharmaceutical service revenue exceeded our expectations," Veracyte CEO and Chairman Bonnie Anderson said in a statement.
Total revenue included $25.5 million in product revenue and $4.1 million in biopharmaceutical revenue, stemming from Veracyte's partnerships with Loxo Oncology to develop targeted thyroid cancer drugs, and with Johnson & Johnson to focus on lung cancer diagnostics, Veracyte management said during a conference call with investors.
As a result of its Q1 2019 performance, the company raised its full year revenue guidance to between $117 million and $121 million, up from a previous estimate of $113 million to $117 million. During the conference call, Veracyte CFO Keith Kennedy said that the company expects its genomic testing volumes to grow between 20 percent to 25 percent in 2019 compared to 2018 and expects biopharmaceutical revenue for the year to be around $8 million.
The company's net loss shrunk 79 percent to $1.9 million, or $.05 per share, from $9.2 million, or $.27 per share, in the year ago quarter. It beat Wall Street's expected loss per share of $.10. As previously stated, Veracyte expects to be cash-flow breakeven by the end of the year.
Veracyte's R&D expenses totaled $3.4 million in Q1 2019, down 8 percent from $3.7 million in Q1 2018. Its SG&A expenses, meantime, grew 13 percent to $19.4 million from $17.2 million.
The company ended the quarter with $67.8 million in cash and cash equivalents.
Veracyte's stock was up nearly 6 percent at $24.16 in Wednesday mid-morning trading on the Nasdaq.