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Rosetta's Q4, FY 2015 Revenues Rise on PersonalizeDx Acquisition

NEW YORK (GenomeWeb) – Rosetta Genomics announced after the close of the market Wednesday a more than 400 percent jump in fourth quarter revenues as the company benefitted from an expanded suite of molecular diagnostic offerings.

For the three-month period ended Dec. 31, Rosetta's revenues climbed to $3.6 million, including $1.6 million in license revenue, from $698,000, which included $228,000 in license revenue, in the same period a year ago.

"We set out to broaden our differentiated and proprietary content for use in personalized medicine, and while we entered 2015 with nearly all our revenue coming from a single commercial assay, we exited 2015 with more than 20 individual test offerings contributing to our top line," Rosetta President and CEO Kenneth Berlin said in a statement.

Revenues from solid tumor testing services, including the microRNA-based Cancer Origin Test, rose to $726,000 in the quarter from $343,000 in Q4 2014. Meanwhile, the company's urologic cancer testing services operations, where were acquired through Rosetta's purchase of PersonalizeDx last year, generated $1.2 million in revenues.

Rosetta's fourth quarter net loss was $6.7 million, or $.37 a share, and included $1.6 million in expenses related to the revaluation of warrants for share purchase agreements. The firm did not provide a comparison to the bottom line for the fourth quarter of 2014.

Fourth quarter research and development costs were $1 million, while SG&A expenses were $3.6 million. Rosetta said that it does not believe prior-year comparisons are meaningful as they would not reflect the impact of PersonalizeDx operations.

For full-year 2015, Rosetta's revenues from continuing operations jumped to $8.3 million from $1.3 million. Revenues from solid tumor testing increased 227 percent to $3.2 million, while revenues from urologic testing were $3.5 million.

The company's 2015 net loss was $17.3 million, or $1.15 a share, compared with $14.5 million, or $1.29 a share, in 2014. On a non-GAAP basis, its net loss for FY 2015 was $.99 per share versus an adjusted loss of $1.22 per share for 2014.

Its R&D spending for the year increased to $3 million from $1.9 million, primarily due to the costs associated with the development of its thyroid cancer assay. Meantime, SG&A expenses for the year rose to $14.9 million from $12.3 million, an increase the firm attributed to the PersonalizeDx acquisition.

At the end of 2015, Rosetta had cash, cash equivalents, restricted cash, and short-term bank deposits totaling $13.5 million. This figure doe not include $1.6 million in licensing revenues received in January related to a deal inked in December 2015.Rosetta said it expects it cash position will fund its operations for at least the next 12 months.