NEW YORK – HTG Molecular Diagnostics reported after the close of the market on Tuesday that its second quarter revenues rose 18 percent year over year.
For the three-month period ended June 30, the Tucson, Arizona-based firm's revenues rose to $5.8 million from $4.9 million in the year-ago quarter, beating the Wall Street estimate of $5.6 million.
Revenues from products and product-related services soared to $4.4 million from $2.0 million a year ago, primarily due to steady growth in the firm's core RUO profiling business. Revenues from collaborative development programs sank 52 percent to $1.4 million from $2.9 million in the year-ago quarter. In a conference call recapping the company's earnings, HTG CEO and President John Lubniewski said this decline was due to a drop in the number of development programs and reduced activity in two active programs.
HTG's net loss in the second quarter rose to $4.8 million, or $.17 per share, from $4.1 million, or $.14 per share, but beat analysts' consensus loss per share estimate of $.15.
HTG's R&D spending in the quarter rose 18 percent to $3.3 million from $2.8 million in Q2 2018. SG&A costs, meanwhile, fell to $4.7 million from $4.8 million.
At the end of June, HTG had $11.8 million in cash and cash equivalents, and $9.8 million in short-term investments.
HTG plans to launch a research-use-only version of its breast cancer panel in early 2020, as the firm seeks to obtain full 510(k) approval from the US Food and Drug Administration to commercialize the assay in late 2020 or early 2021. Following the release of the RUO breast cancer assay, the team will develop in vitro diagnostic assays that Lubniewski said will "address current unmet needs in diagnostic intervention points within the breast cancer treatment paradigm."
Lubniewski also noted that HTG has a funnel of biopharma partnerships and projects (currently around 72) that have potential to lead to FDA-approved companion diagnostics in the future.
During the quarter, HTG said that users can now run its HTG EdgeSeq DLBCL Cell of Origin Assay and EdgeSeq Lung Fusions assays on Thermo Fisher Scientific's Ion Torrent Ion S5 platform. In addition, in June the firm released an updated version of its HTG EdgeSeq Reveal data analytics software.
HTG said that it believes total revenue for the full year ending Dec. 31, 2019 will be in the range of $23.0 to $26.0 million.
During Thursday morning trading on the Nasdaq, shares of HTG were down 2 percent at $1.35.