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Foundation Medicine Preliminary Q4 Revenue Rises 11 Percent

NEW YORK (GenomeWeb) – Foundation Medicine's preliminary fourth quarter 2016 revenue increased by approximately 11 percent year over year, the company said today.

Foundation Medicine reported about $28.8 million in preliminary fourth quarter revenue, up from $26.1 million during the same period in 2015. Analysts, on average, had estimated $30.3 million in revenue for the quarter.

About $19 million of Q4 revenue came from biopharmaceutical companies, up from $14.1 million in Q4 of 2015. Q4 revenue from clinical testing is an estimated $9.8 million, down from $12 million in Q4 of 2015.

Foundation Medicine reported 12,788 clinical test results to ordering physicians in Q4, up from 8,286 tests during Q4 of 2015.

For full-year 2016, the company booked approximately $116.9 million in preliminary revenue, up 25 percent from $93.2 million in 2015. Full-year 2016 revenue from biopharma customers climbed to approximately $78.8 million, from $44 million in 2015, while clinical testing revenue was about $38.1 million, down from $49.2 million in 2015.

In 2016 the company reported 43,686 clinical tests to ordering physicians, up from 32,998 in 2015.

As of Dec. 31, Foundation Medicine had approximately $143 million in cash, cash equivalents, and marketable securities.

In a statement, CEO Michael Pellini said that the company is  "well positioned for continued growth and further competitive differentiation," particularly as a result of its ongoing Parallel Review process with the US Food and Drug Administration and the Centers for Medicare & Medicaid Services for its FoundationOne universal pan-cancer companion diagnostic assay. Troy Cox will take over for Pellini as CEO by early February.

Foundation Medicine hopes to advance several other business objectives this year, including broadening Medicare and third-party payor coverage for its clinical tests, growing its clinical test volume and expanding its global market for those tests, and increasing its biopharma business, including new companion diagnostic collaborations and clinical trial access programs.

The company plans to announce complete fourth quarter and full year financial results in February. At that time, it will also provide financial guidance for 2017.

Foundation Medicine's shares climbed 0.5 percent to $19.40 in Monday morning trading on the Nasdaq.