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Oncocyte Q1 Revenues Rise 27 Percent on DetermaRx Activity

NEW YORK – Oncocyte's first quarter revenues grew 27 percent year on year, driven largely by its DetermaRx lung cancer test, the company reported after the close of the market on Wednesday.

For the three months ending March 31, the Irvine, California-based company reported $1.4 million in revenues, compared to $1.1 million in the same quarter last year, missing the consensus Wall Street estimate of $2.2 million. Revenues associated with DetermaRx came to $1 million, up from $600,000 million in Q1 of 2021.

"In the first quarter, DetermaRx grew 66 percent versus Q1 of 2021," CEO Ronald Andrews said in an investor call, "and sample volumes are 73 percent above the prior year, reflecting continued momentum towards our stated goal of doubling 2021 volumes and revenues."

The firm reported a net loss of $10.3 million, or $.11 per share, compared to a net loss of $3.9 million, or $.05 per share, in the same period last year. Analysts, on average, had expected a net loss of $.12 per share.

Oncocyte's first quarter R&D expenses rose 50 percent, from $3.4 million in the first quarter of 2021 to $5.1 million in Q1 of 2022, driven by increased headcount supporting clinical trials in oncology and transplants.

SG&A expenses rose 27 percent to $8.9 million in Q1 from $7.0 million in the same quarter last year. This increase, the firm said, was due largely to increased personnel and related expenses, as well as higher sales and marketing activities in the transplant area and oncology-related commercialization efforts.

"We saw increases in stock based and cash compensation for our new hires and a standard cost of living increase for many employees," said CFO Mitch Levine. "We also incurred professional legal fees, as well as other acquisition and business development related costs, which we expect will be non-recurring."

The company ended the quarter with cash, cash equivalents, restricted cash, and marketable securities of $22.7 million and marketable securities of $574,000.

In early morning trading on the Nasdaq, Oncocyte shares were down 3.54 percent, at $1.09.