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HTG Molecular Diagnostics Posts 10 Percent Drop in Q3 Revenues

NEW YORK (GenomeWeb) – HTG Molecular Diagnostics reported after the close of the market Monday that its third quarter revenues fell 10 percent amid a sharp decline in product sales.

For the three months ended Sept. 30, HTG's revenues fell to $913,901 from $1.0 million the year before.

Product revenues dropped 48 percent to $506,065 from $973,956 year over year, which HTG said reflected its focus on biopharmaceutical partners that prefer to access its technology via services in its VERI/O laboratory. The company also experienced a significant reduction in consumable sales to a single customer after it completed a large sample analysis project in late 2015.

HTG's Q3 service revenues, which consisted primarily of sample processing for biopharma customers, surged more than 1,000 percent to $407,836 from $37,000 in the year-ago quarter — an increase the company attributed to its partners' usage of the HTG EdgeSeq next-generation sequencing system in their drug-development programs.

HTG's third quarter net loss widened to $6.5 million, or $.92 per share, from $5.2 million, or $.76 per share, in the same quarter last year.

R&D spending in the quarter rose to $1.9 million from $1.3 million, while SG&A costs increased slightly to $3.9 million from $3.7 million.

At the end of the third quarter, HTG had cash and cash equivalents totaling $5.5 million.

Looking ahead, HTG President and CEO TJ Johnson said in a statement that the company is "off to a healthy start [in the fourth quarter] as we continue to make strides with pharma, especially in immuno-oncology. We are also encouraged by the performance of our HTG EdgeSeq ALKPlus assay in the first phase of clinical trials" as a companion diagnostic for the non-small cell lung cancer drug crizotinib.

During Tuesday morning trading on the Nasdaq, shares of HTG were down nearly 5 percent to $2.11.