NEW YORK (GenomeWeb) – Cancer Genetics reported after the close of the market Tuesday a 39 percent increase in first quarter revenues.
For the three-month period ended March 31, the company's revenues grew to $6.1 million from $4.4 million a year earlier. The company's biopharma services generated $3.3 million, while clinical services contributed $2.5 million and discovery services contributed $300,000. Clinical services revenues increased 181 percent year over year as a result of the company's October acquisition of Response Genetics.
"Our company has focused aggressively on … the final phase of integration of Response Genetics, and on developing new business contracts — both clinical and biopharma — with partners that will be essential to helping both long-term growth and margin expansion," Cancer Genetics President and CEO Panna Sharma said in a statement. "Our company's solid growth, coupled with our industry-leading capabilities in providing both genomic and immune marker data, positions CGI in a central position to be the partner of choice in delivering precision medicine for oncology."
CGI's Q1 net loss widened to $5.3 million, or $.39 a share, on 13.5 million shares outstanding from $4.3 million, or $.44 a share, on 9.7 million shares outstanding a year earlier
The company's R&D spending in the quarter edged up to $1.5 million from $1.3 million, while SG&A costs climbed to $5.6 million from $4.1 million.
At the end of the quarter, CGI had cash and cash equivalents totaling $13.3 million.
Since the start of Q1, CGI added the number of immuno-oncology clinical trials using its immune market and genomic data services to 12 from three. During the quarter it also inked a deal for its cancer diagnostics and genomic testing services with Blue Cross Blue Shield of Minnesota.
"The global infrastructure and unique business model we've developed through strategic acquisitions has positioned us for diversified growth and unparalleled access to the oncology community," Sharma added. "Our team's efforts in immune-oncology will drive substantial increases in both community testing and clinical trial participation throughout the remainder of 2016 and well into 2017, which leads the company towards its goal of profitability."
During early morning trading on the Nasdaq Wednesday, shares of CGI were down 8 percent at $2.38.