Despite the fact harsh weather in the East and Midwest and a difficult reimbursement climate nipped at the bottom lines of several laboratories that issued recent earnings reports, most reported significant growth in revenue, if not their profits.
Although New Jersey-based Bio-Reference Laboratory reported a 12 percent increase in revenue for its fiscal quarter, ending Jan. 31, to $181.3 million from $161.3 million, net income dropped by two-thirds, to $3 million from $8.7 million.
Bio-Reference officials said the inclement weather snapped of 5 cents per share from its earnings, or about 30 percent overall. Another 30 percent of the drop was attributable to ongoing cuts in reimbursement from Medicare and other payers.
However, Bio-Reference noted that its molecular testing segment was growing steadily.
“Although companywide revenue per patient was flat (quarter-over-quarter), patient count for genetic testing increased by 70 percent,” said Bio-Reference Chief Executive Officer Marc Grodman, M.D. “The revenue per patient for these services is substantially higher than the rest of our business.”
Enzo Biochem Narrows Losses
New York-based Enzo Biochem narrowed its loss for its second fiscal quarter, ending Jan. 31, cutting it to $3.6 million. That’s compared to a $5.7 million loss for the year-ago quarter. Revenue was up slightly to $22.9 million, compared to $22.2 million in the second quarter of fiscal 2013. However, the company said the poor weather reduced revenue by a minimum of $500,000.
For the first half of fiscal 2014, revenue dropped slightly, to $47.1 million, compared to $47.8 million during the first half of fiscal 2013. Revenues from laboratory services did rise to $28.7 million, from $28.5 million.
Like Bio-Reference, molecular and genetic testing is pushing Enzo Biochem forward, according to President Barry Weiner.
Opko Health Grows Revenues
The Miami-based Opko Health grew its revenue dramatically but widened its losses. For the fourth quarter of 2013, revenue increased 30 percent to $20.7 million, up from $16.2 million for the fourth quarter of 2012. However, the company lost $17.3 million, compared to a loss of $600,000 in the year-ago quarter. Company officials attributed the loss to investments in ongoing product development.
For calendar 2013, Opko more than doubled its revenue to $96.5 million, from $47 million in 2012. However, it lost $117.3 million for the year, nearly quadruple the $29.7 million loss it reported in 2012.
Opko booked a highly ambitious $1 billion in ongoing research and development and good will on its balance sheet, compared to $92 million in 2012, strongly suggesting it expects an ongoing upsurge in sales. Its assays focus on the use of immunoglobulin G autoantibodies as disease-specific biomarkers. Opko also expects to market in the coming months a new blood test for prostate cancer that it will eventually convert into a point-of-care test. The assay has been available in Europe since 2012.
Transgenomic Struggling
Omaha, Neb.-based Transgenomic continues to struggle, reporting a loss of $4 million for the fourth quarter, ending Dec. 31, up 70 percent from the $2.3 million loss it reported in the final quarter of 2012. Revenue was down to $6.2 million, compared to $7.3 million in the year-ago quarter.
For calendar 2013, Transgenomic reported a loss of $16 million on revenue of $27.5 million. For 2012, it lost $8.2 million on revenue of $31.5 million.
Although Transgenomic reported that its genetic testing business had increased, it did not release specific figures. Overall revenue from its laboratory services segment was down more than 20 percent for the calendar year.
Takeaway: Molecular testing appears to be fueling most of the laboratory sector’s revenue growth, but margin growth remains elusive.
