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Natera Q2 Revenues Climb 21 Percent

NEW YORK (GenomeWeb) – Natera reported after the close of the market on Wednesday that its second quarter 2018 revenues rose 21 percent year over year.

The San Carlos, California-based molecular diagnostics firm reported total Q2 2018 revenues of $63.1 million, compared to $52.3 million in Q2 2017, beating analysts' average estimate of $61.2 million.

The firm processed 162,807 tests in Q2 2018, a 29 percent jump from 125,700 tests in the prior year period. Total tests included 113,300 of its noninvasive prenatal test Panorama, a 27 percent bump from the 89,400 it ran in Q2 2017, as well as 41,800 of its Horizon carrier screening test, a 36 percent increase from the 30,700 accessioned in Q2 2017.

During a conference call with investors CEO Matt Rabinowitz said that the drivers for future revenue growth would be "volume growth and stable pricing," and that "both trends are playing out."

Natera recognized a net loss of  $33.8 million, or $.62 per share, in Q2 2018, up from $29.1 million, or $.55 per share, in Q2 2017. It missed Wall Street's loss-per-share estimate of $.55.

After the close of Q2, Natera completed a secondary equity offering, raising $97.3 million in net proceeds. Rabinowitz said in a statement that the "completion of our follow-on equity offering gives us capital to pursue near term opportunities across prenatal health, transplant rejection, and oncology."

As previously announced, Natera plans to launch a kidney transplantation rejection test based on collaborative research with the University of California, San Francisco.

The firm's R&D expenses ticked up 1 percent to $11.9 million from $11.8 million, while SG&A expenses rose 9 percent to $37.4 million from $34.3 million.

Natera anticipates total 2018 revenues between $250 million and $275 million. Analysts on average are expecting 2018 revenues of $258.7 million. Natera COO Steve Chapman said that the firm expects its test volume to grow by 25 percent to 35 percent in 2018.

Natera ended the quarter with $12.3 million in cash and cash equivalents, $5.6 million in restricted cash, and $70.9 million in short-term investments.

On Thursday morning Natera's stock was up close to 1 percent at $23.66 on the Nasdaq.