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Transgenomic Q3 Revenues Fall 16 Percent

NEW YORK (GenomeWeb News) – Transgenomic reported after the close of the market on Wednesday that its sales in the third quarter fell 16 percent year over year.

Total sales for the three months came in at $6.6 million, compared to $7.9 million a year ago. While the Omaha, Neb.-based company saw a change in mix to higher priced lab tests and higher contract revenues associated with a collaboration agreement, it wasn't enough to offset a decrease in laboratory services to $4.1 million from $4.7 million, and a drop in diagnostic tools sales to $2.5 million from $3.2 million.

The firm's net loss rose to $5.6 million, or $.06 per share, in the recently completed quarter, compared to $2.8 million, or $.04 per share, a year ago, as SG&A costs increased 36 percent to $7.6 million from $5.6 million. Its R&D costs narrowed 6 percent to $630,000 from $668,000.

Transgenomic ended the quarter with $4.0 million in cash and cash equivalents.

The company's recent highlights include a marketing agreement with PerkinElmer covering Transgenomic's molecular diagnostic oncology products outside the US. It and PDI also reached a deal to commercialize Transgenomic's CardioPredict test in the US.

In September, Paul Kinnon was named as the company's president and CEO, replacing Craig Tuttle. In a statement on Wednesday, Kinnon said, "Transgenomic’s highest priority over the near term is to maximize the commercial potential of our strong molecular diagnostics portfolio, which focuses on low level and rare mutation detection, and the adoption of strategic partnerships to expand the company’s commercial reach."

"Going forward we will be placing significant emphasis and support on new commercialization agreements, developing clinical tests and building our strategy around companion diagnostics using our proprietary high-sensitivity technology while maximizing our own commercialization efforts in the area of rare genetic disorders," he added.