NEW YORK – Interpace Diagnostics said after the close of the market on Wednesday that its third quarter revenues increased 33 percent year over year.
The Parsippany, New Jersey-based firm also announced that it has changed its name to Interpace Biosciences to better reflect its new business model combining esoteric molecular diagnostic testing with the new drug discovery and development services business it acquired from Cancer Genetics in July.
"We are a leader in enabling personalized medicine, offering specialized services along the therapeutic value chain from early diagnosis and prognostic planning by way of Interpace Diagnostics' historical business, to now targeted therapeutic applications for pharmaceutical and biotech companies by way of our new Interpace Pharma Solutions business," Interpace CEO Jack Stover said in a conference call recapping Q3 earnings. "We changed our name to better represent our broader based combined business, and to indicate that we are no longer a diagnostic company alone."
For the three months ended Sept. 30, 2019, Interpace tallied total revenues of $7.7 million compared to $5.8 million a year ago and short of analysts' average expectation of $10.5 million.
Interpace said that its diagnostics business saw volume growth of 16 percent in Q3 as Medicare and contracted reimbursement remained strong and continued to grow for both of its for thyroid cancer detection products, ThyGeNext and ThyraMir.
Q3 total revenues also included revenues from the its new business, called Interpace Pharma Solutions, for part of the quarter.
During Q3 Interpace closed on a $13 million convertible preferred stock investment by Ampersand Capital Partners, constituting the second tranche of an overall $27 million convertible preferred stock financing provided by Ampersand in connection with the acquisition of Cancer Genetics' biopharma business.
Also of note, Interpace said in September that it contracted with three independent Blue Shield Blue Cross plans in the South and Southwest US covering nearly 5 million lives in total.
Interpace's Q3 net loss was $7.4 million, or $.19 per share, compared to $3.0 million, or $.11 per share a year ago, and in line with the consensus Wall Street estimate.
The company's R&D expenses grew 68 percent to $857,000 from $510,000 in the year-ago period, while its SG&A expenses jumped 78 percent to $7.3 million from $4.1 million.
Interpace finished the quarter with $2.4 million in cash and cash equivalents.
The firm adjusted its full-year revenue guidance downward to a range of $28 million to $32 million from a previously stated range of $33 million to $36 million due to the continued transition of the biopharma business. The company also reconfirmed top-line revenue guidance of $50 million for 2020.