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Transgenomic Q2 Revenues Edge Up as Net Loss Narrows

NEW YORK (GenomeWeb) – Transgenomic said after the close of the market on Friday that its second quarter sales revenues rose slightly year over year.

For the three months ended June 30, the firm reported revenues of $505,000 compared to $442,000 in the year-ago quarter.

The company's laboratory services revenues were flat year over year, with the slight increase in total revenues due to oncology revenues and awarded grants.

In a statement, Transgenomic President and CEO Paul Kinnon said that through the first half of 2016, the company has made progress in its plans to focus its business on advancing ICE-COLD PCR-based tests, having let go of many of the other arms of its business over the past year, culminating in a move to suspend operations of its New Haven, Connecticut-based patient testing laboratory earlier this year.

According to Kinnon, Transgenomic has significantly advanced its commercialization strategy for ICE-COLD PCR-based tests, "despite challenges," and the positive feedback received from early ICP customers and potential partners has been encouraging.

During a call discussing the company's Q2 earnings, Kinnon said that the "superior performance and unique qualities" of ICE-COLD PCR "should result in a number of deals in the coming months of 2016."

"We now have a number of signed revenue-generating projects with pharma and biotech clients that we expect to get underway as soon as patient samples become available," he said, adding that the company anticipates seeing revenues for these projects in the "single-digit millions" of dollars starting in the second half of 2016.

Recent highlight for the company include the launch during the first quarter of this year of its rapid-turnaround breast cancer analysis panel at the annual meeting of the American Association for Cancer Research, and a study presented at June's American Society of Clinical Oncology meeting confirming the concordance of ICP-enriched and conventional PCR testing.

After the close of Q2 2016, Transgenomic launched the first commercially available test for the detection of EGFR C797S mutations, which predict resistance to new lung cancer therapies.

The company also signed a non-exclusive agreement with VWR in July for distribution of ICEme kits to researchers and labs in North America.

Transgenomic's net loss available to common stockholders was $997,000, or $.05 per share, compared to a net loss of $3.6 million, or $.30 per share in the year-ago period. Transgenomic used approximately 21.8 million shares to calculate per-share loss in the most recent quarter, compared to about 12.1 million shares in Q2 2015.

On a non-GAAP basis, the company reported a net loss of $1.8 million in the quarter compared to $2.1 million in Q2 2015.

The firm spent $402,000 on R&D in Q2 2016, down from $468,000 in the year-ago period. Its SG&A expenses also dropped to $1.4 million from $1.9 million.

Transgenomic finished the quarter with $421,000 in cash and cash equivalents.