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Nanosphere Ends Yearly Revenue up on Verigene Sales

This article has been updated to include additional Q4 financial information, comments from a conference call, and a stock quote.

NEW YORK (GenomeWeb News) – Nanosphere said on Thursday after the close of the market that its fourth-quarter revenues rose 66 percent, with all of its sales coming from its Verigene System.

Nanosphere brought in revenues of $313,000 for the three-month period Dec. 31, compared with revenues of $188,000 for the comparable period of 2007, when most of the company's revenues came from the $138,000 it made from contracts and government grants.

The company's quarterly R&D spending rose 15 percent to $6 million from $5.2 million, while SG&A spending dipped 18 percent to $3.1 million from $3.8 million year over year.

Nanosphere's net loss for the quarter was $9.4 million, or $.42 per share, down from a loss of $10.8 million, or $.82 per share, for the fourth quarter of 2007.

In January, the company submitted its hemochromatosis genetic test with the Food and Drug Administration. In addition, during the fourth quarter, the firm filed 510(k) FDA submissions for two additional tests, including cystic fibrosis and a panel of respiratory viruses.

The company also has recently filed an FDA submission for the Verigene SP, a molecular diagnostic sample preparation tool. Nanosphere also has begun clinical trials for its cardiac troponin assay and plans to submit its 510(k) application for that product in the second quarter of this year, Nanosphere President and CEO William Moffitt said.

Nanosphere's full-year 2008 revenue rose 16 percent to $1.4 million from $1.2 million. Its net loss for the full year dropped 30 percent to $37 million, or $1.67 per share, from $53.2 million, or $14.18 per share.

"Looking back at 2008, there is no question that the controversy that surrounds the use of warfarin metabolism testing to guide therapy, as evidenced by the resistance on the part of some payers to reimburse the test, has had an impact on volume and system placements," Moffitt said during the firm's fourth-quarter conference call.

"We are disappointed that this test did not drive greater market adoption of our Verigene platform," he said. "We are, however, encouraged by the growing public attention focused on the value of warfarin metabolism as evidenced by the number of articles in major publications."

The firm's R&D spending for the year increased 11 percent to $23.7 million from $21.4 million, and SG&A spending ticked up one percent to $13.6 million from $13.4 million.

Nanosphere finished the year with $75.4 million in cash and cash equivalents.

In late Friday morning trade on the Nasdaq, Nanosphere's shares were up 14 percent at $3.69.