NEW YORK (GenomeWeb) – OpGen reported after the close of the market on Tuesday that its second quarter revenues rose 215 percent year over year driven by sales of its rapid pathogen ID molecular diagnostic products.
For the three months ended June 30, the Gaithersburg, Maryland-based firm reported total revenues of $1.2 million compared to $375,146 a year ago. Product sales rose to $1.0 million from $319,171, while lab services revenues rose slightly to $29,674 from $28,195 the year before. Revenues from collaborations rose to $125,000 from $27,780.
"We are pleased with our continued revenue growth for the second quarter with sales of our rapid pathogen ID diagnostic products as the primary contributor," said Chairman and CEO Evan Jones in a statement. "These results reflect the shift of our business towards rapid molecular testing to help guide antibiotic decision making."
The company also continued development of its new genomic analysis and informatics solutions for hospital and network-wide infection prevention and treatment, Jones said, and completed internal development of its new Resistome test for high-resolution analysis of antibiotic resistance markers in clinical isolates.
On a conference call with analysts following the release of the results, Jones touted the company's completion of a health outcomes study of multi-drug resistant organisms (MDRO) in partnership with Intermountain Healthcare. Overuse of antibiotics in healthcare has led to the rise of drug-resistant superbugs, he said, and OpGen intends to help solve the problem. The company is developing digital solutions based on genomics and informatics technology that can help rapidly identify a pathogen and provide a clinician with accurate treatment options. OpGen President Kevin Krenitsky said that the majority of the study's results will be released in conference posters and presentations in coming months, though the company intends to keep some of the data proprietary.
Jones also added that OpGen is building a data warehouse where thousands of microbes will be sequenced and analyzed. Based on its Lighthouse informatics, the data warehouse will be cloud-based, and CLIA and HIPPA compliant. Krenitsky also noted that the firm's CLIA lab has been successfully inspected by the New York State Department of Health, and that the firm expects to receive formal approval from the agency by year's end.
The company's longer term goal is to develop a one-hour rapid ID test to help physicians make antibiotic treatment decisions, Jones said. OpGen is further working to expand its relationships with various governments, NGOs and other firms, he added, noting that Merck is now a "significant stockholder" in OpGen. The firm's reported net loss for the quarter stayed fairly flat at $5.4 million. However, OpGen's loss per share narrowed to $.37 from $.84 a year ago as its weighted average shares outstanding more than doubled to approximately 14.5 million.
Its R&D costs rose 130 percent to $2.3 million from $1.0 million in Q2 2015. According to CFO Timothy Dec, this was due to lab expenses and costs of developing the QuickFISH rapid pathogen ID test. Its SG&A costs rose 48 percent to $3.4 million from $2.3 million because of increased salary, facility, and public company costs, as well as costs of expanding the sales and marketing team, and completing its MDRO health outcomes study with Intermountain Healthcare, Dec added.
OpGen ended the quarter with $8.0 million in cash and cash equivalents. The firm also reported it closed a previously announced $10.4 million placement, with Merck Global Health Innovation Fund and Sabby Management as lead investors.
The firm's shares rose more than 8 percent to $2.25 in after-hours trading on the Nasdaq.