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Genetic Technologies' Q3 Revenues Narrow 9 Percent

NEW YORK (GenomeWeb News) – Genetic Technologies said after the close of the market on Tuesday that receipts from customers in its fiscal third quarter decreased 9 percent year over year.

For the three months ended March 31, the Australian company brought in A$1.2 million (US$1.2 million) in customer receipts, down from A$1.1 million a year ago, GTG said in a document filed with regulators in Australia.

During the quarter, GTG received 403 BrevaGen breast cancer test samples, the first time the figure exceeded 400 and an approximately 10 percent increase sequentially, the company said. Sales revenues for the test were up 31 percent sequentially, the result of positive changes affecting reimbursement for the test, it added.

"The record strength in the quarter is illustrative both of the continued traction BrevaGen is generating in the US marketplace, as well as the favorable effect of the new reimbursement guidelines with regard to our fully adjudicated claims," GTG CEO Alison Mew said in a statement.

On the litigation front, in March GTG initiated legal action against Bioscientia Institute for Medical Diagnostics in Ingelheim, Germany related to GTG's non-coding technology patents. It also has begun legal action against Hendrix Genetics, headquartered in Boxmeer, the Netherlands.

GTG also said that during the fiscal third quarter it filed lawsuits against Natera, HistoGenetics, and General Genetics, and discussions with the three firms "are now being pursued." The company added that its lawyers are "preparing additional [lawsuits], to be filed when appropriate."

Earlier this week, the company settled legal disputes with PreventionGenetics and Genetics & IVF Institute over its US patents related to non-coding DNA technologies. Last month, the US Patent and Trademark Organization granted a request from Merial for a second ex parte re-examination of US Patent No. 5,612,179 held by GTG.

The firm's net operating cash flow for the quarter narrowed to A$2.6 million from A$2.0 million a year ago.

GTG had no R&D costs in the quarter, the same as a year ago, while staff costs of A$1.9 million were up 12 percent from A$1.7 million, and advertising and marketing costs of A$163,727 were up 5 percent from A$156,204 a year ago.

The company finished the quarter with A$3.1 million in cash.