NEW YORK (GenomeWeb News) - Nanosphere yesterday said third-quarter revenues fell 58 percent as R&D spending rose 37 percent and its net loss ballooned.
Total receipts for the three months ended Sept. 30 decreased to $199,000 from $468,500 year over year.
The company said product-related revenue fell to $6,125 from $89,030, and grant and contract revenue fell to $192,880 from $379,494.
R&D spending rose to $5.7 million from $4.1 million year over year. The spending spike was due primarily to continued development of the firm’s Verigene platform, expanding its test menu, and developing its manufacturing systems.
Nanosphere's sales, general, and administrative costs also rose more than 300 percent to $4.4 million from $1.4 million.
The company posted a net loss of $27 million, up from $4.6 million in the year-ago period.
Nanosphere said the third quarter’s loss included non-cash charges of $16.7 million “due to the increase in fair value of the convertible derivative liability and preferred stock warrants.” The increased valuation of the firm was the result of the Verigene System and initial diagnostic assays recently receiving US Food and Drug Administration clearance.
“We are currently focused on product launch, initial customer placements, and continuing investments in research and development to expand our test menu and develop next generation systems,” Nanosphere President and CEO William Moffitt said in a statement.
Nanosphere had around $18.1 million in cash and cash equivalents at the end of the quarter.