NEW YORK (GenomeWeb News) – Vermillion today reported flat fourth quarter revenues year over year.
For the three months ended Dec. 31, 2014, the Austin, Texas-based company recorded $1.6 million in total revenues, even with the year-ago period. Product revenues, comprised of OVA1 sales, were also flat at $1.5 million, as were licensing revenues at $113,000.
OVA1 revenues during both Q4 2014 and Q4 2013, Vermillion said, included an additional royalty component of revenue based on 33 percent of the Quest Diagnostics gross margin on the test. Vermillion recognizes this portion of revenue when it is reported by Quest Diagnostics in a "true-up" after the end of the calendar year, it said.
A "true up" is an accounting method to adjust a figure to its true value.
During the recently completed quarter, product revenue was made up of $214,000 from 4,474 OVA1 tests, and $1.2 million from the 33 percent royalty on 16,563 OVA1 tests reported by Quest as resolved in 2014.
The resolved tests include reimbursed and unreimbursed tests for which Quest considers the payment status as final, Vermillion said.
Of the 4,474 tests performed in Q4, 257 were performed by Vermillion's CLIA facility Aspira Labs. Aspira performed 152 OVA1 tests in Q3 2014.
The firm posted a net loss of $4.1 million, or $.11 per share, for the fourth quarter, compared to a net loss of $1.8 million, or $.07 per share, a year ago.
Vermillion upped its R&D spending 19 percent in Q4 2014 to $1.2 million from $1.0 million in Q4 2013, and increased its SG&A spending 70 percent to $4.0 million from $2.3 million.
For full-year 2014, the company posted revenues of $2.5, down slightly from $2.6 million in 2013. Product revenues were flat at $2.1 million, while licensing revenues were unchanged at $454,000.
Product revenue from OVA1 in 2014 included $825,000 from 16,839 OVA1 tests performed, and $1.2 million from the 33 percent royalty reported by Quest.
By comparison, in 2013 product revenue from OVA1 included $851,000 from 17,004 OVA1 tests performed, and $1.3 million from the 33 percent royalty reported by Quest.
For full-year 2014 Vermillion had a net loss of $19.2 million, or $.53 per share, compared to a net loss of $8.8 million, or $.42 per share, a year ago.
The company's R&D costs in 2014 increased 80 percent year over year to $4.7 million from $2.6 million, while its SG&A costs were up 83 percent to $15.8 million from $8.7 million.
The company said its increased expenses during the year and quarter were due primarily to expanded sales and marketing headcount as well as increased R&D spending to complete OVA1's platform migration and the development of a second-generation test.
Vermillion finished 2014 with $23.0 million in cash and cash equivalents.