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Vermillion Posts $345K in Q4 Revenues

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Vermillion today announced revenues of $345,000 for the fourth quarter and $1.2 million for full-year 2010, the first year that its OVA1 triage test for ovarian cancer was commercially available.

For the three months ended Dec. 31, 2010, the Austin, Texas-based molecular diagnostics company posted revenues of $345,000, compared to no revenues a year ago. Wall Street had expected $660,000 for the quarter.

The company received $149,000 in product revenues with the balance, $196,000, comprised of licensing revenues.

During the quarter, 2,935 OVA1 tests were performed, a 49 percent increase over the third quarter. During a conference call following the release of Vermillion's earnings, Chairperson and CEO Gail Page said that the firm is moving closer to launching OVA1 abroad, and has been working with Quest Laboratories, its partner on the test, on launch plans in India, Mexico, and England.

Vermillion, she noted, is set to launch the test in at least one of those countries by mid-year.

In addition, the company is "very excited" by the market opportunity in China and is in discussions with potential partners there.

For the first quarter of 2011, the company expects to perform between 3,000 and 3,500 OVA1 tests, CFO Sandra Gardiner noted on the call.

Page said that the company is progressing with two other tests in its pipeline, one for vascular disease, and the other is the OVA2 test for diagnostic purposes in ovarian cancer not addressed by OVA1.

On the vascular program Vermillion has partnered with the Colorado Prevention Center on an intended-use study. Patient recruitment for the study is expected to begin shortly, Page said, and top-line data is expected to become available in the third quarter.

On OVA2, Vermillion is working with researchers at Johns Hopkins University. "We have undertaken marker assessment studies and have generated encouraging data," which will be presented at a forthcoming conference, she said.

During the quarter, Vermillion spent roughly $1.1 million on R&D, up 26 percent from $831,000 a year ago. SG&A costs rose five-fold to $3.5 million from $669,000 a year ago.

Vermillion's net loss for the fourth quarter was $4.0 million, or $0.38 per share, down 38 percent from a loss of $6.4 million, or $0.86 per share, for Q4 2009, above Wall Street estimates of a loss of $0.35 per share.

For full-year 2010, the company posted revenues of $1.2 million, compared to no revenues in 2009, but below analyst expectations of $1.49 million. Product revenues totaled $308,000, and licensing revenues totaled $867,000.

Its net loss for the year came in at $19 million, or $1.83 per share, down 14 percent from a loss of $22 million, or $3.31 per share, in 2009. Analyst estimates were for a loss of $1.81 per share.

Vermillion's R&D costs were $3.8 million, up from $2.3 million, a 64 percent uptick. SG&A costs rose nearly four-fold to $11.8 million from $3.0 million in 2009.

Vermillion had $22.9 million in cash and cash equivalents as of Dec. 31.

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