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Cancer Genetics Q4 Revenues Up 38 Percent

NEW YORK (GenomeWeb) – Cancer Genetics reported today after the close of the market that its fourth quarter revenues grew nearly 38 percent year over year.

For the three months ended Dec. 31, 2015, the company reported revenues of $5.5 million compared to $4.0 million in Q4 2014. The firm's biopharma services business contributed $3.0 million while its clinical services unit contributed $2.4 million of the total.

"Our business continues to scale as we integrate the acquisition of Response Genetics, focus on expanding our biopharma partnerships, and enhance our capabilities to provide both comprehensive immuno-oncology and genomic testing for oncology," said President and CEO Panna Sharma in a statement. "In addition, CGI's presence is growing both clinically and among biopharma companies — our teams are currently working with eight of the top 10 pharma companies, and we have agreements with 24 payers, managed care providers, and insurance companies."

CGI's Q4 net loss widened slightly to $5.7 million, or $.48 per share, compared to a loss of $5.2 million, or $.55 per share, a year ago.

The firm's R&D expenses fell 27 percent to $1.1 million from $1.5 million the year before, while its SG&A expenses rose 26 percent to $6.7 million from $5.3 million.

For full-year 2015, CGI reported that total revenues climbed 77 percent to $18.0 million from $10.2 million in 2014. Biopharma services revenue was responsible for most of the increase over the course of the year, rising 106 percent to $11.6 million from $5.6 million in 2014.

Among its key achievements during the year, the company highlighted being chosen to provide comprehensive testing for a global, multi-year chronic lymphocytic leukemia trial, which it said was the largest clinical trial it has ever been chosen to participate in.

CGI also completed the acquisition of Response Genetics for $14 million in October.

The firm's net loss for the year widened to $20.2 million, or $1.96 per share, from $16.6 million, or $1.80 per share, the year before.

CGI's R&D expenses rose 20 percent to $5.5 million from $4.6 million in the year-ago period, and its SG&A expenses rose 21 percent to $19.9 million from $16.4 million in 2014.

The firm ended the year with cash and cash equivalents of $19.5 million, and restricted cash of $300,000.

"As we look ahead in 2016, we see multiple growth drivers impacting our business," Sharma said. "The increasing number of oncology clinical trials utilizing both genomic and immune-based markers is expected to continue to drive strong demand for our products and services. In addition, our ability to offer a comprehensive oncology-focused menu of tests positions us as an ideal partner for healthcare systems."

The company also plans to launch several new tests in 2016, including a multiple myeloma panel with the Mayo Clinic, an NGS-based lung cancer panel, and an NGS-based panel for hereditary cancers, Sharma added.

In after-hours trading on the Nasdaq, CGI's shares were down more than 2 percent to $2.61.