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Interpace FY15 Revenues Rise on MDx Acquisitions

NEW YORK (GenomeWeb) — Interpace Diagnostics this week reported a surge in revenues for 2015, reflecting the impact of the acquisition of molecular diagnostic assets during the last two quarters of the previous year.

For the 12-month period ended Dec. 31, Interpace's revenues jumped more than 525 percent to $9.4 million from $1.5 million.

It posted a net loss of $11.4 million, or $.73 per share, versus a net loss of $16.1 million, or $1.08 per share, for FY2014. Its loss from continuing operations climbed to $31 million from $13.5 million year over year. 

Interpace, formerly PDI, began restructuring itself as a pure-play molecular diagnostics firm in 2014, acquiring Asuragen's miRInform Thyroid and Pancreas cancer tests that August and RedPath Integrated Pathology a few months later. In late 2015, the company sold off its biomedical commercialization and marketing services business to Publicis Group for up to roughly $48 million.

According to the company, these assets drove the 2015 revenue increase, while also pushing up SG&A and R&D costs. The company's R&D spending in 2015 surged to $2.3 million from $255,000, while SG&A expenses increased to $27.3 million from $14.9 million.

The firm also reported $3.8 million in acquisition-related amortization expense compared to $773,000 for 2014. 

At the end of 2015, Interpace had cash and cash equivalents totaling $8.3 million.

"Since we began transitioning our company to focus exclusively on developing and commercializing our own molecular diagnostics assays, Interpace has achieved several critical milestones," Interpace Interim CEO Jack Stover said in a statement. "We continue to build commercial momentum for our thyroid assays, ThyGenX and ThyraMIR, reflected by a 38 percent sequential increase in volumes during the fourth quarter. PancraGen, our test for pancreatic cysts, is making progress through increased peer-reviewed evidence demonstrating its clinical utility, generating enhanced payor coverage and expanding the number of doctors and patients with access to PancraGen."

He added, "Our key goal in 2016 is to leverage our commercial expertise and capitalize on our strong clinical evidence and increased payor coverage to cost effectively drive diagnostic test volume and revenue."

In Thursday morning trade on the Nasdaq, shares of Interpace were down around 15 percent at $.22.