NEW YORK (GenomeWeb) – HTG Molecular Diagnostics reported after the close of the market on Thursday that its first quarter revenues fell 14 percent year over year, due in part to lower product sales.
The molecular-profiling instrument maker reported Q1 revenues fell to $865,232 from $1.0 million in Q1 2015. Service revenues rose sharply to $265,042 from $62,292 the year before, but were offset by a drop in product revenues to $600,190 from $727,438 in the year-ago period. Product revenues included $80,000 from instrument sales and $500,000 from the sale of consumables.
The company also said that Q1 2015 total revenues included a grant of $234,000, which ended in June 2015.
HTG's net loss for the quarter widened significantly to $7.0 million from $5.0 million the year before. However, the company's quarterly loss per share narrowed to $1.02 from $14.99 in Q1 2015, due to a twentyfold increase in the number of shares outstanding. The firm went public in May 2015.
The firm's R&D expenses for Q1 rose to $2.0 million from $688,214 year over year, while SG&A costs rose 38 percent to $4.7 million from $3.4 million.
The company ended the quarter with $4.9 million in cash and cash equivalents, and $25.2 million in short-term investments.
HTG also announced it has signed a research collaboration agreement with Bristol-Myers Squibb to evaluate the potential efficacy of immuno-oncology molecular profiling in multiple tumor types, and to develop immune-oncology tools. The partners plan to use HTG's next-gen sequencing-based EdgeSeq to support Bristol-Myers' translational research activities.
"We believe this collaboration will provide many benefits to Bristol-Myers Squibb's immuno-oncology development programs and further add to HTG's industry leadership in the development of NGS-based molecular diagnostic assays toward the goal of precision medicine," said HTG Chief Business Officer John Lubniewski in a statement. "This collaboration is the result of a long-standing Bristol-Myers Squibb/HTG relationship and we are excited to continue as a partner with Bristol-Myers Squibb's translational research team."
Further terms of the deal were not disclosed.
HTG's shares rose 35 percent to $3.25 in after-hours trading on the Nasdaq.