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GenMark Posts 300 Percent Q2 Revenue Growth

NEW YORK (GenomeWeb News) – GenMark Diagnostics reported after the close of the market Tuesday that its second-quarter revenues increased 300 percent due to growth in its test menu and reagents sold.

The Carlsbad, Calif.-based molecular diagnostics firm brought in total revenues of $3.6 million for the three months ended June 30, compared to $901,000 for the second quarter of 2011. It beat the consensus Wall Street estimate of $3.1 million.

GenMark said that its reagent revenues increased 321 percent year over year to $3.5 million from $825,000, and its instrument and other revenues increased 86 percent to $141,000 from $76,000. It placed 31 analyzers during the quarter, bringing its total installed base to 220.

Four of the placements in the second quarter were outright capital sales, GenMark President and CEO Hany Massarany said on a conference call following the release of the results. He also said that the 31 total analyzers placed were in line with the company's expectations, and the firm is on target to reach its goal of placing more than 100 analyzers in the field this year.

The firm posted a net loss of $5.6 million, or $.26 per share, for the quarter, versus a net loss of $5.6 million, or $.39 per share, for Q2 2011. The number of shares used to calculate the loss per share was nearly 21.2 million for the most recent quarter, compared to 14.4 million for the second quarter of 2011. It beat analysts' consensus estimate by a penny.

GenMark's R&D spending increased 23 percent to $3 million from $2.3 million, while its SG&A expenses increased 33 percent to $4 million from $3 million.

GenMark finished the quarter with $64.2 million in cash and cash equivalents.

Two months ago, GenMark raised around $39.3 million in a public offering of its common stock. The funds are being applied to R&D work to expand GenMark's test menu, to further develop its NexGen System, a sample-to-answer platform, and to expand the firm's commercial organization.

The firm aims to show a prototype of the system later this year at the Association for Molecular Pathology meeting and expects a commercial launch of the system late in 2013, Massarany said on the call. He added that the initial target for the NexGen System are decentralized labs that are not currently running molecular tests.

In addition, late last year the firm filed for US Food and Drug Administration for 510(k) clearance of its Respiratory Viral Panel. Massarany said yesterday that the "process remains on track and we remain confident that we will obtain 510(k) clearance this quarter in advance of the upcoming flu season."

GenMark's shares closed up 23 percent at $7.05 in Wednesday trade on the Nasdaq.