NEW YORK – MDxHealth reported before the opening of the market on Thursday that its first quarter revenues rose 24 percent year over year, thanks to a 26 percent increase in product revenues.
For the three months ended March 31, total revenues rose to $5.9 million from $4.7 million in Q1 2019. Product revenues increased to $5.6 million from $4.5 million in the prior-year period.
The company saw 3 percent growth in ConfirmMDx prostate cancer test volume to 4,532 tests from 4,379 in Q1 2019. It also saw a reduction of 28 percent in SelectMDx prostate cancer test volume compared to the prior year period. In the US, the number of SelectMDx tests decreased 32 percent to 3,346 from 4,941, and in the EU, test volume fell 9 percent to 1,063 tests from 1,165.
"As communicated at the time of our annual results in February, we have been highly focused on execution of our growth strategy, and our first quarter 2020 results reflect that focus," MDxHealth CEO Michael McGarrity said in a statement. "Product revenues in the first quarter of 2020 increased by 26 percent compared to Q1 2019 and ConfirmMDx units, while impacted in March by the COVID-19 outbreak, were still up 3 percent from the same period last year. Despite the unavoidable challenges presented by this pandemic, MDxHealth's compelling value proposition, strong business fundamentals, and emphasis on focus and execution remains unchanged."
Contact between MDxHealth sales reps and clinicians in the field began to decline in March because of the COVID-19 pandemic, which predominantly affected SelectMDx volumes, McGarrity added. However, the impact of this volume reduction had minimal effect on the company's revenues or cash flows in Q1 as SelectMDx is not yet reimbursed.
As a result of the pandemic, the company suspended its 2020 guidance, noting that current market conditions make it very difficult to project future results.