Earnings reports for some of the smaller esoteric labs trickled in during the latter part of November and December, and they presented a mixed bag. The largest of the labs, Redwood City, Calif.-based Genomic Health, dropped into the red for the third quarter ending Sept. 30, reporting a loss of $6.1 million, compared to net income of $604,000 for the third quarter of 2013. Revenue was up 5 percent, to $69.1 million compared to $66 million a year ago. Although the company reported rapid growth of its breast and prostate cancer tests, operating expenses increased more than 15 percent. For the first nine months of 2014, Genomic Health has posted a loss of $18 million on revenue of $206.6 million, compared to a loss of $3.2 million on revenue of $192.1 million a year ago. New York-based Enzo Biochem also operated in the red for its fiscal 2015 first quarter ending Oct. 31. It posted a loss of $3.7 million on revenue of $24.8 million. That compares to a net loss of $2.8 million for the fiscal 2014 first quarter on revenue of $24.1 million. Legal fees were up more than 70 percent, to $2.5 million, due to what the […]
Earnings reports for some of the smaller esoteric labs trickled in during the latter part of November and December, and they presented a mixed bag.
The largest of the labs, Redwood City, Calif.-based Genomic Health, dropped into the red for the third quarter ending Sept. 30, reporting a loss of $6.1 million, compared to net income of $604,000 for the third quarter of 2013. Revenue was up 5 percent, to $69.1 million compared to $66 million a year ago. Although the company reported rapid growth of its breast and prostate cancer tests, operating expenses increased more than 15 percent. For the first nine months of 2014, Genomic Health has posted a loss of $18 million on revenue of $206.6 million, compared to a loss of $3.2 million on revenue of $192.1 million a year ago.
New York-based Enzo Biochem also operated in the red for its fiscal 2015 first quarter ending Oct. 31. It posted a loss of $3.7 million on revenue of $24.8 million. That compares to a net loss of $2.8 million for the fiscal 2014 first quarter on revenue of $24.1 million. Legal fees were up more than 70 percent, to $2.5 million, due to what the company said was increased litigation.
Omaha, Neb.-based Transgenomic was able to reduce its flow of red ink even as revenue continues to shrink. It reported a loss of $80,000 on revenue of $6.4 million for the third quarter ending Sept. 30, compared to a year-ago quarterly loss of $5.6 million on revenue of $6.6 million. The company attributed the dip in part to the sale of rights to its Surveyor line of assays and a large testing contract that ended in 2013. Chief Executive Officer Paul Kinnon said the loss of revenues is expected to be replaced with other testing in the coming quarters.
Miami-based Opko Health also narrowed its quarterly losses, but they remained significant. It reported a loss of $48.7 million on revenue of $19.8 million for the third quarter, compared to a loss of $60 million on revenue of $20.6 million for the third quarter of 2013.
The company said its 4KScore prostate cancer test was gaining a toehold in the European market, and had a new pharmaceutical in late-stage testing. It also had some $120 million in cash on hand in order to continue its focus on new product growth.
Takeaway: Many of the smaller esoteric labs are struggling to achieve significant revenue growth and profitability.
