NEW YORK – CareDx reported after the close of the market on Thursday that its second quarter revenues rose 77 percent year over year, thanks largely to a 79 percent increase in testing service revenues during the quarter.
For the three months ended June 30, the South San Francisco, California-based molecular diagnostics company reported total revenues of $74.2 million, up from $41.8 million during the same period a year earlier and beating the average Wall Street estimate of $67.6 million.
Testing services revenues rose to $64.9 million from $36.3 million in the prior-year quarter, while product revenues more than doubled to $6.9 million from $3.3 million. Digital and other revenues rose slightly to $2.4 million from $2.2 million in Q2 2020.
CareDx said it returned approximately 37,400 results from its AlloSure Kidney blood-based, donor-derived, cell-free DNA test for organ transplant rejection, AlloMap Heart transplant test, and other diagnostic tests to patients in Q2. On a conference call with analysts following the release of the earnings, CareDx CEO Reg Seeto said this indicated 109 percent year-over-year growth. This also included approximately 6,600 results from its AlloSure Heart test.
"With another record quarter, we continue to lead the transformation of the transplant patient journey with our innovative and patient-focused offerings," Seeto said in a statement. "We have become the transplant partner of choice by bringing industry-leading service offerings with AlloSure and AlloMap to the clinic, as well as leading innovation with our multimodal platforms, while we remain focused on the patient journey."
The company also said that more than 65 US-based transplant centers have adopted an AlloSure Kidney testing protocol, and that it can now connect more than 29,000 dialysis patients seeking to be referred for transplant to more than 50 centers and more than 800 dialysis centers and community nephrology practices through its TX Connect service.
On the call, Seeto noted that the company's direct-to-center approach remains central to its strategy, and that it will focus on this approach by offering "an expanded portfolio of offerings within the transplant centers and by increasing the number of AlloSure testing protocols."
He also highlighted CareDx's investments in the "broader ecosystem" of transplant testing and services, as well as its recent partnerships with other companies. In May, he noted, CareDx closed a minority investment for an undisclosed amount in Miromatrix, a biotechnology company developing implantable engineered biological organs. CareDx and Miromatrix have also agreed to collaborate on certain research and development activities using CareDx's technology.
Seeto also said CareDx had "augmented our pipeline" through a strategic agreement with OrganX to develop clinical decision support tools for transplant patients. The companies are planning to create advanced analytics that integrate CareDx's dd-cfDNA assay AlloSure with large transplant databases to provide clinical data solutions.
He further added that CareDx's acquisition of smartphone app developer Transplant Hero in June has helped to improve the company's existing app for transplant patients, making it easier for patients to manage their medications, schedule appointments, and view test results.
The firm's Q2 net loss narrowed to $1.9 million, or $.04 per share, from $6.6 million, or $.15 per share, in Q2 2020. On an adjusted basis, the company reported earnings of $.11 per share for the quarter, beating analysts' consensus expectation for earnings of $.02 per share.
CareDx's Q2 R&D costs rose 45 percent to $19.0 million from $13.1 million in the year-ago quarter, and its SG&A expenses rose 47 percent to $35.9 million from $24.4 million.
The company ended the quarter with $335.6 million in cash and cash equivalents, and $34.3 million in marketable securities.
For full-year 2021, CareDx raised its revenue guidance to a range of $280 million to $290 million from a previous expectation of $270 million to $280 million. Analysts, on average, are expecting revenues of $278.4 million for the year.