NEW YORK (GenomeWeb News) – MDx Health today reported an 8 percent increase in first-half 2011 revenues as commercial revenues rose 19 percent.
For the first six months of the year, the Belgium-based molecular diagnostics firm recorded total revenues of €1.4 million ($2.0 million), compared to €1.3 million during the first half of 2010. Commercial revenues increased to €819,000 from €688,000 a year ago, due primarily to an increase in services to the pharmaceutical industry for potential companion diagnostics, the company said.
MDx Health had a loss of €3.8 million, a 24 percent improvement from a loss of €5 million a year ago, as a result of cost reductions implemented during the previous year, it said. Those steps included shutting down its Netherlands facility, the shedding of 15 jobs, and ending its colorectal cancer screening test program.
It finished the first half of the year with €14.6 million in cash and cash equivalents.
"We successfully continued gearing up for US commercialization in 2012, while improving our financial and operating results," Jan Groen, CEO of MDxHealth, said in a statement. "We further progressed our proprietary tests for prostate, bladder, and lung cancer, and companion diagnostics in collaboration with large pharmaceutical partners … [and] are on track to launch our first tests for prostate cancer via our own CLIA commercial laboratory in the US in the first half of 2012."
For full-year 2011, MDx Health said that revenues are expected to "remain stable" compared to 2010, when it generated about $3.4 million in revenues. The firm's 2012 revenues are expected to increase after it launches its prostate cancer test via its US CLIA laboratory. The company said last week it had filed for CLIA certification for the laboratory in Irvine, Calif.
Operating costs are expected to be on par with 2010 levels though higher during the second half of 2011 than in the first half due to expenses related to preparation of the Irvine laboratory in anticipation of commercial operations next year. Net results, MDx Health added, are expected to be similar to 2010 when it posted a loss of €8.3million.