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Great Basin Preliminary Q2 Revenues Climb 39 Percent

NEW YORK (GenomeWeb) – Molecular diagnostics firm Great Basin Scientific today reported that its preliminary second quarter revenues rose 39 percent year over year due to growth in its customer base.

For the three months ended June 30, the Salt Lake City-based firm reported preliminary revenue of $728,957, up from $525,506 in the second quarter of 2015.

The firm also saw a 126 percent increase in US customers, from 115 to 260, in the quarter.

"We remain convinced that our combination of ease of use, affordability, and versatile menu put us in an exceptional position as we seek to dominate the market of 4,900 hospitals under 400 beds in the United States," Ryan Ashton, the firm's president and CEO, said during a conference call to discuss the preliminary results.

The firm added 38 new customer sites in Q2, Ashton said. As of June 30, test penetration included 182 customer sites using only the firm's C. diff test, seven using only Group B Strep, and 71 using both.

In the quarter, the firm launched an enhanced version of its platform. It had also expected to begin shipping its Shiga Toxin Direct Test and the Staph ID/R Blood Culture Panel that were recently cleared by the US Food and Drug Administration.

However, "We determined that minor sample preparation format changes were needed for both assays to meet our stringent standards for ease of use and customer experience. Bluntly, we failed to properly estimate the time required to make and validate the changes and we missed our target ship dates," Ashton said.

The firm is now completing the validation process and expects commercial launch of the tests in Q3.

Great Basin closed a $75 million convertible note financing with $68 million of gross proceeds earlier this month.

"We believe this financing, combined with a smaller equity transaction we are planning for the fall of this year, may very well be adequate to fund Great Basin through to profitability," Ashton said. He further noted that the firm estimates profitability by 2018 will require between 800 and 1,000 customers utilizing between 1,800 and 2,000 instruments, as well as seven to nine FDA-cleared and commercially available tests by the late 2017 or early 2018. 

The firm was granted continued listing on Nasdaq last month, and now has until September 26, 2016 to obtain the minimum $35 million market value of listed securities requirement, which must be maintained for ten trading days prior to October 10, 2016.