- Fourth Quarter Revenues up 118 Percent Year over Year to $4 million
- Full-Year 2014 Revenue Increase up 54 Percent over 2013 to $10.2 Million
- Cancer Genetics to Host Conference Call Today, Thursday March 12th at 8:30 am Eastern Time / 5:30 am Pacific Time
RUTHERFORD, N.J., March 12, 2015 (GLOBE NEWSWIRE) -- Cancer Genetics, Inc. (Nasdaq:CGIX), an emerging leader in DNA-based cancer diagnostics, announced today financial and operating results for the fourth quarter and year-ended December 31, 2014.
Financial results and highlights for the fourth quarter, ended December 31, 2014, and full year 2014, include:
- Fourth quarter 2014 revenues were $4.0 million, a 118% increase over fourth quarter 2013 revenues of $1.9 million, and 25% sequential growth over $3.2 million in the third quarter of 2013.
- Revenue from Biopharma services revenue grew 280% year-over-year during the fourth quarter while revenue from Clinical services increased 24% year-over-year for the same quarter.
- Full year 2014 revenues were $10.2 million, a 54% increase over 2013 revenue.
- 2014 revenue from Biopharma services increased 112% to over $5.6 million during the full year while revenue from Clinical services increased 21% to over $4.4 million during the same period.
- Total cash was $31.9 million at the year-end of 2014 with unrestricted cash at $25.6 million.
- Signed contracts in Biopharma services increased significantly to over $25 million for year-end 2014.
“Our business is gaining strong momentum across all key customer categories,” said Panna Sharma, president and chief executive officer of Cancer Genetics. “Our recent acquisitions are contributing significantly to our revenue growth, and to our differentiated global capabilities in oncology diagnostics and genomics. We expect continued positive impact from these strategic initiatives in 2015 and beyond. The ability to serve clients from bench to bedside across multiple geographies as the oncology diagnostics partner of choice is driving significant demand for our services, especially among biotechnology and pharmaceutical companies. Both biopharma companies and leading clinical centers are demanding biomarker guided clinical decision making and patient management.”
“2014 was a tremendous year for CGI on many fronts, highlighted by numerous advancements in innovation, and execution,” said Panna Sharma. “We made significant progress in expanding access to the Company’s tests and services globally, generating adoption among leading companies and clinicians in cancer care and treatment,” continued Mr. Sharma. “As we look into 2015 and beyond, we expect expanded revenue growth, more rapid test adoption and the achievement of a number of significant milestones and market-defining partnerships that will continue to drive growth.
“The upcoming launch of our groundbreaking genomic panel in multiple myeloma from our joint venture with the Mayo Clinic, Oncospire™, is further evidence of our commitment to innovation and ability to execute targeted improvements in oncology patient care,” continued Mr. Sharma. “We are also excited about the progress in the further development of our strategic and marketing initiatives of our unique product for cervical cancer diagnosis and management, FHACT®, which has the potential to significantly improve cervical cancer detection while reducing invasive procedures and costs.”
2014 and Recent Corporate Highlights
- Completed two key acquisitions that will drive both revenue growth and innovation
- BioServe Biotechnologies (India) Pvt. Ltd., a premier genomic services provider serving both the research and clinical markets in India based in Hyderabad, India
- Gentris Corporation, a global provider of clinical pharmacogenomics solutions, next-generation sequencing, and biomarker testing for the global pharmaceutical and biotechnology industry based in Research Triangle Park, North Carolina
- Launched several new and unique oncology tests focused on improved patient management
- Focus::CLLTM, a targeted next-generation sequencing (NGS) based panel for Chronic Lymphocytic Leukemia, which was subsequently selected for use in global clinical trial by a leading biotechnology company
- Updated our proprietary algorithm for risk stratification and outcome prediction for CLL and SLL patients providing greater clarity of risk and improved patient management
- Expanded our unique genomic tests into additional B-Cell cancers, Follicular Lymphoma and Mantle Cell Lymphoma
- Initiated groundbreaking research collaborations with Columbia University, Beth Israel Deaconess Medical Center and Keck School of Medicine at USC to identify genomic signatures, biomarkers and novel treatments in hematologic malignancies.
- Collaboration and development focused on myelodysplatic syndrome (MDS) and acute myeloid leukemia (AML), with Columbia University
- Collaboration focused on validation and discovery of genomic biomarkers in patients with diffuse large B-cell lymphoma (DLBCL) with Beth Israel Deaconess and Keck School of Medicine at USC.
- Digitally enabled our ExpandDx™ service, which is a collaborative testing program for community hospitals and clinical laboratories that contributed to our 24% annual growth in Clinical services.
- Continued expansion of service contracts with leading biotechnology and pharmaceutical companies
- The Company was selected during January to power molecular and biomarker testing for six clinical trials with leading biotechnology companies focused on hematological cancers
- We also experienced significant expansion of Biopharma service pipeline and opportunities as a result of the acquisition synergies
- Received CE Mark approval in Europe and secured two key patents for FHACT.
- Strengthened core management team with addition of key personnel in clinical reimbursement, revenue cycle management and biopharma operations.
Fourth quarter revenues were $4.0 million, a 118% increase compared to the fourth quarter of 2013, and a 25% increase over the third quarter. This growth was driven by strong market demand across all customer categories. The Clinical services business, which provides oncology testing for clinicians, cancer centers, and hospitals. This category grew 24% over the fourth quarter of 2013. Revenue from the Company’s Biopharma services business, which includes our acquisition of Gentris, provides genomic, molecular and biomarker based testing for biotech and pharmaceutical customers, was up 280%, as compared to the prior year fourth quarter.
Revenue for the full-year increased 54%, to $10.2 million, primarily due to the acquisitions of Gentris and BioServe. The Company’s average revenue (excluding grant revenue and probe revenue) per test decreased to $550 per test for the year ended December 31, 2014 from $566 per test for the year ended December 31, 2013, principally due to a decrease in the average revenue per test from private insurance carriers and other non-Medicare payors.
Revenue from Biopharma services increased 112%, or $3.0 million, to $5.6 million, for the year ended December 31, 2014, from $2.7 million for the year ended December 31, 2013, principally due to the acquisition of Gentris. Revenue from Clinical services customers increased 21%, or $770,000, to $4.4 million for the year ended December 31, 2014, from $3.7 million for the year ended December 31, 2013, primarily due to an increase in test volume. This increase in volume was partially offset by a decrease in average revenue per test from private insurance carriers and other non-Medicare payors. Revenue from Discovery services, a recently launched service line focused on the technology and discovery needs of research organizations in public and private companies increased $161,000 for the year ended December 31, 2014, representing approximately 2% of total revenue.
Earnings on an adjusted basis (Adjusted earnings) during the fourth quarter was ($4.7) million, or ($0.49) per diluted share. Adjusted earnings, which is a non-GAAP measure, excludes one-time expenses related to our M&A activity. For the full year 2014, adjusted earning was ($16.2) million, or ($1.71) per diluted share. Net loss for the quarter was ($5.2) million, or ($0.55) per diluted share, compared to a net loss of ($2.5) million, or ($0.37) per diluted share in the fourth quarter of 2013. Net loss for the year was ($16.6) million, or ($1.80) per diluted share, compared to ($12.4) million, or ($3.64) per diluted share in 2013.
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