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CareDx Q3 Revenues up 16 Percent

NEW YORK (GenomeWeb) – CareDx said after the close of the market on Monday that its third quarter revenues were up 16 percent year over year.

The Brisbane, Calif.-based molecular diagnostics firm reported total revenues of $6.7 million for the three months ended September 30, up from $5.8 million in the year-ago quarter and just above the consensus analyst estimate of $6.6 million.

Testing revenue increased 16 percent year over year to $6.6 million from $5.7 million, while collaboration and license revenue decreased 42 percent to $53,000 from $91,000.

During the third quarter, CareDx settled with Roche over a dispute concerning a licensing agreement signed by the companies in late 2004. "This resulted in a positive impact to cost of testing, since the final payment for past royalties was less than what was accrued during the past three years," CareDx said in a statement accompanying its Q3 results.

As part of the settlement reached between the firms, CareDx agreed to pay Roche more than $2.8 million for past royalties due between July 1, 2011 and June 30, 2014. The terms of the settlement also provided for a future reduction in the portion of CareDx's AlloMap that is subject to the royalties due Roche starting in Q4 2014.

CareDx President and CEO Peter Maag said that the firm continues "to generate new and recurring revenue from our AlloMap surveillance solution for heart transplant patients, while developing a new pipeline for cfDNA tests for heart and kidney transplant patients."

CareDx had a profit of $1.2 million, or $.12 per share, for the recently completed quarter. Analysts, on average, had estimated a loss of .13 per share. During the year-ago quarter, the firm had a net loss of $830,000, or $.82 per share.

CareDx went public in July and used 11.2 million shares to calculate its EPS figure for Q3 2014, compared to 1 million shares for its net loss per share figure for Q3 2013.

The company increased its R&D spending 49 percent year over year for the recently completed quarter to $1 million from $668,000, and increased its SG&A spending 23 percent to $3.7 million from $3 million.

CareDx finished the quarter with $39 million in cash and cash equivalents.

It said that it continues to expect full-year 2014 revenues to be in the range of $26 million to $26.5 million.

Shares of CareDx climbed 8 percent to $6.94 in Tuesday morning trade on the Nasdaq.