NEW YORK (GenomeWeb) – Novacyt reported today that full year 2016 revenues rose 25 percent year over year, driven in part by revenue growth from its Novaprep liquid cytology solution and by its acquisition in May 2016 of Primerdesign, a real-time PCR company.
For the full year 2016, the firm said that revenues rose to €11.1 million ($11.99 million) from €8.9 million in 2015. Revenues grew 38 percent at constant exchange rates, the company said.
Novacyt reported that full year Novaprep revenues grew to €1.6 million, an increase of 24 percent over the prior year, despite the negative impact of supply chain issues that led to shipping delays. during the year. The firm will ship orders valued at €346,000 this year instead, it said.
Novaprep revenues in Asia Pacific grew by 116 percent in 2016, and Eastern Europe and the Middle East each grew by more than 60 percent. In France, Novaprep revenues declined 7 percent, as the firm began transitioned to an indirect sales model there in the second half of the year.
Primerdesign revenues, on a pro forma basis, were down 4 percent to €5.1 million last year versus €5.3 million in the prior year. On a constant exchange rate, the business grew 8 percent and benefitted from "strong core growth" of 71 percent in South America, 67 percent in Asia Pacific, and 28 percent in North America.
Revenues from Lab21, which provides specialized and routine clinical laboratory testing services, were €6.2 million, down 8 percent from the prior year at constant exchange rates.
During 2016, the company raised €8.1 million in cash from equity rounds and €3.0 million in bonds from Kreos Capital.
The firm completed the year with €2.9 million in cash.
Novaprep noted that operational highlights in 2016 included the launch of Novaprep in new markets, including Turkey, Qatar, Israel, Malaysia, and Australia. It also launched Lab21 products in Brazil through a new manufacturing partnership that it said has the potential to deliver "significant sales in 2017." And Novacyt launched 10 CE-marked infectious disease products to complement its existing Lab21 portfolio.
The firm said that it is on track with the development of its first three infectious disease assays, including a broad spectrum human papilloma virus assay, a Zika virus assay, and a multiplex assay that differentiates between the Zika, dengue, and chikungunya viruses.
The firm said that in 2017, it expects to launch Novaprep within "key markets" in South America when registrations have been completed through a partnership it has with Cepheid.
Novacyt added that it is on track to announce "plans for seeking US Food and Drug Administration approval" for Novaprep in early 2017.
Novacyt CEO Graham Mullis said in a statement that in 2017 the firm plans to invest in R&D and commercial infrastructure at Primerdesign "to drive sustainable growth of high gross margin molecular products" and to support its expansion into clinical diagnostic markets.
"With continued sales growth and improving gross margins, we are aiming to move into profitable trading during 2017 to create a strong basis for future growth,” he added.