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Transgenomic Q1 Revenues Grow 4 Percent

NEW YORK (GenomeWeb) – Transgenomic said after the close of the market Thursday that its first quarter revenues increased 4 percent year over year, buoyed by a spike in laboratory services sales.

The company also said that it plans to launch its first services and products based on its flagship multiplex ICE-COLD PCR (MX-ICP) technology in June.

For the three months ended March 31, Omaha, Nebraska-based Transgenomic recorded $6.5 million in total revenues compared to $6.3 million in the year-ago period. Excluding the impact of the divested Surveyor product line, year-over-year net sales increased approximately 11 percent, the company said. Transgenomic last July sold its Surveyor Nuclease technology and assets to Integrated DNA Technologies for a minimum of $4.25 million.

Transgenomic's first quarter Laboratory Services segment revenues increased 32 percent to $4.9 million from $3.7 million in Q1 2014, reflecting higher sales of patient tests and increased sales of contract laboratory services. Meantime, Q1 Genetic Assays and Platforms revenues dropped 36 percent to $1.6 million from $2.6 million due to lower bioconsumables and fewer instrument sales.

Transgenomic's net loss in Q1 was $3.0 million, or $.36 per share, compared to $4.2 million, or $.60 per share, in the same quarter last year. On an adjusted basis, its Q1 net loss was $2.0 million.

The company's first quarter R&D expenses fell 24 percent to $567,000 from $745,000, while its SG&A expenses dropped 4 percent to $5.1 million from $5.3 million.

Transgenomic ended the quarter with $5.4 million in cash and cash equivalents.

In a statement, Transgenomic President and CEO Paul Kinnon noted that the company is preparing for the imminent launch of its "breakthrough" MX-ICP technology.

"We have been gearing up for the rollout of MX-ICP, both by augmenting our internal resources and completing agreements with collaborators that further strengthen customers' confidence in the utility and quality of the technology," Kinnon said. "Several weeks ago, we announced the availability of MX-ICP to customers of our Biomarker Identification services business, and today we are excited to announce that we will be launching MX-ICP CLIA testing at ASCO at the end of the month in Chicago, well ahead of our stated plan. Additionally, we expect to launch MX-ICP kits worldwide in mid-June."

Expanding on this during a conference call following release of the company's earnings, Kinnon noted that the MX-ICP product launches will be 12 months ahead of the company's previously stated goal.

"Providing access to MX-ICP … [in a] CLIA laboratory certified to conduct clinical diagnostic tests makes it available for the first time to oncologists and other physicians, hospitals, [and] institutions who want to realize the benefits in the therapeutic decision-making, monitoring, and treatment of patients," Kinnon said.

He further noted that the company will be launching its MX-ICP kits worldwide for use on all sequencing platforms. "The kits will initially be labeled research use in the US and will be available worldwide and in the US," he said. "Additionally, we will be offering CE marked kits in Europe for use in clinical assays."

Lastly, Kinnon noted that the company is also "pursuing a major initiative to establish a large number and variety of strategic partnering and licensing relationships with sequencing platform companies and other life sciences companies worldwide."