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CareDx Records 36 Percent Improvement in Q4 Revenues

NEW YORK (GenomeWeb) – CareDx said after the close of the market on Tuesday that its revenues in the fourth quarter jumped 36 percent year over year, aided by a one-time payment from Laboratory Corporation ofAmerica. 

The Brisbane, Calif.-based molecular diagnostics firm recorded $8.0 in total revenues for the three months ended Dec. 31, 2014, up from $5.9 million in Q4 2013 and beating the consensus Wall Street estimate of $6.9 million. 

During the recently completed quarter, CareDx received a one-time payment from LabCorp of $1.1 million related to the termination of an agreement between the firms to develop a lupus flare test. 

It said that testing revenues — comprising the firm's AlloMap gene expression-based test for heart transplant rejection — increased to $6.7 million in Q4 2014 from $5.8 million a year ago. The test was used about 3,100 times during the quarter, representing a 14 percent increase over Q4 2013 levels. 

Collaboration and license revenues rose to $1.3 million in the recently completed quarter from $39,000. 

CareDx had a net loss of $5,000, or break-even on a per-share basis, for Q4 2014, compared to a net loss of $562,000, or $.56 per share, in Q4 2013. Analysts, on average, anticipated a loss of $.11 per share. 

The company, which went public in July 2014, used 12.1 million shares to calculate its loss on a per-share basis for the recently completed quarter, compared to 1 million shares in the year-ago quarter. 

For full-year 2014, CareDx recorded total revenues of $27.3 million, a 24 percent increase from $22.1 million in 2013. It beat the average analysts' estimate of $26.2 million. 

AlloMap test revenues were up to $25.8 million in 2014 from $21.7 million in 2013, while collaboration and license revenues grew to $1.5 million from $426,000. 

CareDx recorded a profit of $781,000, or $.10 per share, in 2014, compared to a net loss of $3.5 million, or $3.50 per share, in 2013, and easily beat the consensus Wall Street estimate of a loss of $.19 per share. 

The firm used about 9.3 million shares to calculate its EPS in 2014 versus 1 million shares to calculate its loss on a per-share basis in 2013. 

CareDx finished 2014 with $36.4 million in cash and cash equivalents. Subsequent to the end of the year, it secured a $20 million loan from East West Bank. Also, in January, two Medicare Administrative Carrier jurisdictions issued positive decisions on covering AlloMap, extending coverage of the test to Medicare patients in 11 additional states.

For 2015, CareDx said that it anticipates full-year revenues to be in the range of $28 million to $30 million. 

In a statement, CareDx President and CEO Peter Maag said that while the firm will continue efforts to increase AlloMap adoption, a primary focus will be advancing CareDx's cell-free DNA surveillance program. 

"Additional testing has shown us that our existing sample sets of heart and kidney transplant patients will need to be augmented by an additional sample collection effort," he said. "Accordingly, we are focusing our internal efforts on the clinical validation of cell-free DNA in kidney transplant patients by initiating the [developmental and reproductive toxicology] study. 

"We continue to believe that our rejection surveillance management solutions could play an important role in the estimated $1 billion post-transplant surveillance market in solid organ transplantation, and we seek to help clinicians address critical unmet medical needs," he added.