NEW YORK (GenomeWeb) – Cancer Genetics said today that its third quarter revenues shot up 88 percent year over year on clinical testing volume growth and the close of two acquisitions during the quarter.
Cancer Genetics' total revenues for the three months ended Sept. 30 rose to $3.2 million from $1.7 million as clinical service revenues improved 44 percent year over year, while biopharma service revenues grew 159 percent. On average, Wall Street had estimated $3.2 million in revenues for the company.
Clinical service revenues grew as test volume improved 44 percent year over year, the company said, adding the average reimbursement per test rose 4 percent. Also, Cancer Genetics closed on its purchases of Gentris and BioServe Technologies in the quarter, contributing to the increase in biopharma service revenues.
"This past quarter places our company in an ideal position to continue our growth from the revenue synergies derived from the acquisitions, the launch of additional tests and services, and the investments we have made in sales and marketing," Cancer Genetics President and CEO Panna Sharma said in a statement. "We are seeing extraordinary interest among community oncologists and pathologists for targeted genomic information that has been validated with leading research institutions to improve diagnosis, as well as guide and monitor patient treatment."
The firm had a net loss of $4.8 million, or $.51 per share, for Q3 2014, compared to a net loss of $3.1 million, or $.61 per share, a year ago, missing the consensus Wall Street estimate of a loss of $.48 per share. In the recently completed quarter, Cancer Genetics used 9.6 million shares to calculate its loss on a per-share basis, compared to 5.1 million shares a year ago. In October 2013, the company raised $46 million in gross proceeds from a public offering of its shares.
Its R&D costs spiked to $1.4 million in Q3 2014 from $433,525 in the year-ago period, and its SG&A spending shot up to $4.2 million from $1.7 million.
Cancer Genetics exited the third quarter with $30.7 million in cash and cash equivalents.
Shares of the company's stock were up 18 percent in Monday morning trading on the Nasdaq to $7.08.