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MDxHealth H1 2020 Revenues Down 9 Percent on Declining Test Volumes

NEW YORK – MDxHealth reported Wednesday that its revenues for the first half of 2020 fell 9 percent year over year, as product revenues also saw a 9 percent decline over the prior-year period.

For the six months ended June 30, total revenues fell to $9.9 million from $10.9 million in H1 2019. Product revenues fell to $9.6 million from $10.6 million in the prior-year period. Revenues from royalties, patents, and other income fell 6 percent to $284,000 from $302,000.

The company saw a decline of 12 percent in ConfirmMDx prostate cancer test volume to 7,662 from 8,732 in H1 2019. It also saw a reduction of 48 percent in SelectMDx prostate cancer test volume compared to the prior year period to 6,485 versus 12,528.

In a statement, MDxHealth CEO Michael McGarrity noted that the year-over-year drop in ConfirmMDx volume reflected limited patient access to doctors and medical procedures during the COVID-19 pandemic. However, he added, the company has seen continued demand for tests despite the pandemic.

"Despite the challenges presented by the pandemic, MDxHealth's compelling value proposition, strong business fundamentals, and emphasis on focus and execution remain unchanged," he said. "While our 2020 guidance remains suspended given the challenge to forecast upcoming quarters amid COVID-19, we do expect to see patient flow and growth in associated volumes return as restrictions are lifted."

The firm's H1 net loss widened to $13.7 million, or $.18 per share, from $14.1 million, or $.24 per share, a year earlier.

MDxHealth had cash and cash equivalents of $23.8 million as of June 30. The company noted that its total cash collections amounted to $11.5 million in H1 2020, a decrease of about 3 percent compared to the same period last year amid lower test volumes, due to the impact of COVID-19.