This article has been updated with additional comment from the company's earnings conference call.
NEW YORK (GenomeWeb) – OpGen reported after the close of the market on Tuesday that its second quarter revenues dropped 42 percent year over year.
For the three months ended June 30, the firm reported total revenues of $703,210, down from $1.2 million in Q2 2016. Product sales fell to $681,127 from $1.0 million in the year-ago quarter, while lab services revenues fell to $15,850 from $29,674, and collaboration revenues sank to $6,233 from $125,000.
On a conference call with analysts following the release of the earnings, OpGen CFO Tim Dec said the drop in overall revenues had been expected, and had been discussed in previous earnings releases. Approximately $300,000 of the drop was due to the company's phase out of its whole-genome mapping products while the remaining $200,000 decrease was due to decreased sales of its legacy FISH pathogen identification products, Dec said.
"During the second quarter and in recent weeks we achieved important milestones in the development of our first Acuitas Rapid Test and the Acuitas Lighthouse Knowledgebase," OpGen Chairman and CEO Evan Jones said in a statement. "We completed design of our new rapid test for complicated urinary tract infections and the associated Acuitas Lighthouse Knowledgebase for predicting antibiotic susceptibility using resistance gene test results. We are completing development and initial verification activities with a goal of having test kits for clinical evaluation in third-party sites during the fourth quarter of 2017."
The company also said it has completed development of genotype/phenotype predictive algorithms based on testing of 7,000 clinical isolates from the Merck SMART surveillance network and clinical collaborators, adding to the 11,000 isolates already in the Acuitas Lighthouse Knowledgebase.
On the conference call, Jones said the company is also envisioning developing a lower respiratory infections test as the second test in the Acuitas Rapid testing line.
OpGen's Q2 net loss narrowed to $4.2 million from $5.4 million a year earlier. Its net loss per share narrowed to $.15 on 28.2 million weighted average shares outstanding from $.37 on 14.5 million weighted average shares outstanding in Q2 2016.
The company's Q2 R&D expenses fell 22 percent to $1.8 million from $2.3 million in the year-ago period. Its SG&A costs fell 21 percent to $2.7 million from $3.4 million.
At the end of the quarter, OpGen had $211,683 in cash and cash equivalents.
The firm's shares closed nearly 8 percent lower at $.29 on the Nasdaq Wednesday.