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Great Basin Q3 Revenues Grow 35 Percent

NEW YORK (GenomeWeb) – Molecular diagnostics firm Great Basin Scientific reported after the close of the market on Monday that its third quarter revenues rose 35 percent year over year, due primarily to sales of its C. diff and Group B strep tests.

For the three months ended Sept. 30, the molecular diagnostics company reported revenues of $735,817, up from $545,934 in the third quarter of 2015.

Revenues from Group B strep testing rose 339 percent to $108,730 from $24,770 in Q3 2015, and now represent 15 percent of total revenue, the company said. C. diff revenue rose 20 percent to $625,827 from $521,164 in the year-ago period.

Great Basin reported a net loss for the quarter of $29.0 million, or $50.36 per share, compared to net income of $13.1 million, or $48,001.32 per share for Q3 2015. Great Basin used approximately 576,752 shares to calculate loss per share in Q3 2016 compared to 272 shares to calculate EPS in the year-ago period.

The Salt Lake City-based firm's R&D spending increased 30 percent to $3.7 million from $2.9 million in the year-ago period due to new hires and additional costs associated with clinical trials, experimental assays, and outside consultants related to the development of new products. Its SG&A expenses rose 24 percent to $4.1 million from $3.3 million year over year due to hiring additional personnel to increase product sales and add customers, increased rent, higher legal and consulting fees, and hiring additional accounting and HR personnel.

In a letter to shareholders, the firm said it intends to launch a plan in Q1 2017 to hold SG&A selling steady and to reduce R&D spending upon completion of a clinical trial for a Bordetella test and 510(k) submission of a stool bacterial pathogens panel.

During the quarter the firm launched a test for Shiga toxin producing E. Coli and a Staphylococcus bacteria blood sepsis panel, effectively doubling its test menu. Great Basin was also delisted from the Nasdaq due to an inability to maintain the minimum $35 million market value and $1 minimum bid price requirements.

Great Basin finished the quarter with $809,763 in cash and $44.9 million in restricted cash.

The firm's shares rose 5 percent to $.02 in morning trading on the Nasdaq.