Rosetta Genomics Reports 2015 Full Year Financial Results

Revenues reach a record $3.6 million for the fourth quarter, $10.2 million (pro forma) for the year

Conference call begins today at 5:00 p.m. Eastern time

PHILADELPHIA & REHOVOT, Israel--(BUSINESS WIRE)--Rosetta Genomics Ltd. (NASDAQ:ROSG), a leading developer and provider of microRNA-based and other molecular diagnostics, today reported financial results for the 12 months ended December 31, 2015.

“We are pleased to have started 2016 on strong footing as we drive clinical testing services of our high-value molecular diagnostics and advance our clinical development pipeline. As a result, we believe we are well-positioned to achieve a series of value-creating milestones throughout the balance of 2016 and beyond”

Recent developments include:

• Launched RosettaGX Reveal™, a first-of-its-kind, microRNA-based indeterminate thyroid nodule classification assay, at the International Thyroid Congress and Annual Meeting of the American Thyroid Association;
• Received conditional approval from New York State to offer RosettaGX Reveal Thyroid microRNA Classifier to patients in New York, which now makes the assay available in all 50 U.S. states;
• Expanded the Company’s molecular diagnostics test menu in oncology with the launch of HEME FISH, BRAF Lung and NRAS Colon assays;
• Granted European patent allowance for the use of microRNAs for the treatment of liver cancer;
• Advanced the collaboration with Biocept to proof-of-concept studies for microRNA profiling of circulating tumor cells to enhance the diagnosis of lung cancer;
• Sublicensed certain microRNA-related patents for the development of oncology therapeutics to Mirna Therapeutics for an upfront payment of $1.6 million, low-single-digit royalties on product sales and potential milestone payments and sublicense fees;
• Presented positive performance data from a multicenter validation study of RosettaGX Reveal; and
• Strengthened the Company’s balance sheet through a private placement that raised net proceeds of $7.3 million.

Management Commentary

“2015 was transformational for Rosetta Genomics. A year ago we put forth a three-pronged strategic approach and we have made excellent progress across all three areas. 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. We also set out to accelerate revenue growth to achieve scale, and today we are reporting pro forma 2015 revenues of $10.2 million, up from $1.3 million in 2014, reflecting our acquisition of PersonalizeDx,” stated Kenneth A. Berlin, President and Chief Executive Officer of Rosetta Genomics. “While our third imperative, improving our efficiency in delivering and distributing novel content, is work in process, we are extremely focused on increasing demand for our broad portfolio and improving collections. If successful, we expect these improvements, along with increased traction from higher margin assays like RosettaGX Reveal, to increase our overall margins and create a foundation to get to breakeven and beyond.