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CareDx Reports Preliminary Q4 Revenues of Nearly $11M

NEW YORK (GenomeWeb) – CareDx reported after the close of the market on Wednesday that its preliminary fourth quarter revenues grew between 61 percent and 65 percent, largely due to sales of Olerup HLA typing-branded products following the acquisition of Allenex AB in April 2016.

For the three months ended Dec. 31, the diagnostics company reported preliminary revenues of $10.6 million to $10.9 million, up from reported revenues of $6.6 million in Q4 2015. Analysts are estimating Q4 revenues of $11.8 million.

The company said revenues from its AlloMap non-invasive blood test for heart transplant patients rose to between $7.2 million and $7.4 million, compared to $6.7 million in the year-ago period. Revenues from Olerup in Q4 were $3.4 million to $3.5 million.

CareDx posted a preliminary Q4 net loss of between $17.9 million and $15.3 million, compared to a net loss of $4.8 million in the same period of 2015. The company recorded an impairment of goodwill of $12.8 million to $14.9 million connected to the acquisition of Allenex. Also reflected in the results is a net income of $700,000 related to the settlement of legal matters with Oberland Capital and the Nasdaq Stockholm.

For full-year 2016, CareDx reported preliminary revenues of $40.4 million to $40.7 million, up from reported revenues of $28.1 million in 2015. Analysts are estimating 2016 revenues of $41.6 million.

The company said revenues from AlloMap rose to between $29.5 million and $29.7 million for the year, compared to $27.9 million in 2015. Revenues from Olerup in 2016 were $10.6 million to $10.7 million.

For the year, the company's preliminary net loss widened to between $41.9 million and $39.3 million compared to a reported net loss of $13.7 million in 2015.

The company touted activities in 2016 that bolstered reimbursement and adoption of its next-generation sequencing-based solid organ transplant diagnostic AlloSure. "Driving AlloSure toward commercialization is our top priority and we believe this will make a fundamental difference for kidney transplant patients and generate shareholder value," CareDx CEO Peter Maag said in a statement. "This quarter we demonstrated that we are delivering on our commitment to bring next-generation sequencing solutions to the transplant clinic. We have submitted the AlloSure dossier for reimbursement with Medicare."

CareDx also announced today that it has signed and closed a $25 million debt facility, the proceeds of which will be used to retire its remaining outstanding debt with East West Bank and provide additional funding for the AlloSure launch initiatives. The senior secured convertible note agreement with an institutional investor consists of $27.8 million in convertible notes with a maturity date of Feb. 28, 2020 and an interest rate of 9.5 percent per year payable monthly, and is convertible into the company's common stock at a price of $4.56 per share at the investor's option.

For full-year 2017, the company said it expects revenues of $45 million to $50 million, excluding any potential AlloSure revenue. Analysts are expecting revenues of $52.3 million for the year.