Oncocyte Sees $2M in Q2 Revenues, Beating Wall Street Estimate

Original from genomeweb

Oncocyte said after the close of the market on Tuesday that its revenues for the three months ended June 30 were $2 million, compared to $143,000 in the same period of 2020 and beating analysts' average estimate of $1.57 million.

The Alameda, California-based firm said the majority of revenues were attributable to tech transfer under a licensing deal announced last December with Chinese firm Burning Rock Biotech for Oncocyte's DetermaRx lung cancer test. Revenues from DetermaRx also increased compared to the prior year's quarter.

Pharma Services revenues were slow in contrast, the company said, a result of variability in the timing of customer projects.

"We expect to gain traction in Pharma Services with a number of near-term opportunities on the horizon with global leaders in pharma and molecular diagnostic platforms," CEO Ron Andrews said in a statement. "DetermaIO, which is on track for clinical launch before year end, continues to prove to be a better predictor of immunotherapy response than the current prognostic assays and has the potential to be transformative for immunotherapy response prediction for both patients and pharma partners," he added, saying that the company is confident it has built a solid "foundation of data" to support pan-cancer utility of the test.

Oncocyte incurred a net loss of $10.5 million, or $.12 per share during the quarter, compared to $9.1 million, or $.14 per share in the same period last year. Analysts on average had expected a lower loss per share of $.10.

Its Q2 R&D expenses dropped about 22 percent to $2.5 million from $3.2 million in Q2 2020. According to the company, this reflects decreases in outside services and clinical consulting for its development programs, as well as a $300,000 depreciation expense decrease.

Oncocyte's SG&A expenses doubled to $10.6 million from $5.3 million, driven by non-cash stock-based compensation expenses. According to the firm, it also incurred a $2.5 million severance expense from its acquisition of Chronix Biomedical.

Oncocyte ended the quarter with $46.5 million in cash and cash equivalents and $1.1 million in marketable securities.

Source: Oncocyte Sees $2M in Q2 Revenues, Beating Wall Street Estimate | Genomeweb