Although many publicly traded genomic laboratories are experiencing extraordinary growth in their revenues, smaller organizations are reporting decidedly mixed results, including struggles keeping their revenue streams in place. Florida-based OPKO Health reported revenue of $22.3 million for the first quarter, down nearly 30 percent from the $31.3 million reported during the first quarter of 2013. Its net loss widened to $45.1 million, compared to $34.6 million during the year-ago quarter. Company officials attributed much of the increased loss to an additional $11 million devoted to expanding product research and development, especially in relation to its 4Kscore prostate test, which was released on March 31. Phillip Frost, M.D., OPKO’s chief executive officer, said the new test was expected to generate substantial revenues in the months ahead. OPKO’s stock rose about 3 percent in trading on the New York Stock Exchange the day after earnings were announced and has risen another 5 percent since then. Massachusetts-based Interleukin Genetics appears to be stuck in place. Its first-quarter revenues were $488,000. Its first-quarter 2013 revenue: $487,000. It lost $1.7 million during the quarter, up about 40 percent from the first quarter of 2013. The company has developed and markets genetic tests to predict periondontal […]
Although many publicly traded genomic laboratories are experiencing extraordinary growth in their revenues, smaller organizations are reporting decidedly mixed results, including struggles keeping their revenue streams in place.
Florida-based OPKO Health reported revenue of $22.3 million for the first quarter, down nearly 30 percent from the $31.3 million reported during the first quarter of 2013. Its net loss widened to $45.1 million, compared to $34.6 million during the year-ago quarter.
Company officials attributed much of the increased loss to an additional $11 million devoted to expanding product research and development, especially in relation to its 4Kscore prostate test, which was released on March 31. Phillip Frost, M.D., OPKO’s chief executive officer, said the new test was expected to generate substantial revenues in the months ahead. OPKO’s stock rose about 3 percent in trading on the New York Stock Exchange the day after earnings were announced and has risen another 5 percent since then.
Massachusetts-based Interleukin Genetics appears to be stuck in place. Its first-quarter revenues were $488,000. Its first-quarter 2013 revenue: $487,000. It lost $1.7 million during the quarter, up about 40 percent from the first quarter of 2013. The company has developed and markets genetic tests to predict periondontal disease and tooth loss, as well as predicting the best exercise regimens for weight loss. Interleukin received approval from New York regulators in April to offer its periodontal disease test in that state. It receives reimbursement of $125 to $200 per periodontal test, Chief Executive Officer Ken Kornman told analysts during a conference call to discuss earnings.
Meanwhile, Nebraska-based Transgenomic is having trouble maintaining its ground. It reported a net loss of $4.2 million for the first quarter, compared to a loss of $3.6 million during the first quarter of 2013. Revenue declined to $6.3 million from $7.4 million, a drop of 15 percent. Chief Executive Officer Paul Kinnon said he was buoyed by the quarter-over-quarter growth in its laboratory services segment. It grew from $2.8 million during the fourth quarter of 2013 to $3.7 million in the most recent quarter. However, it was still down 17 percent from the $4.4 million reported for the first quarter of 2013.
“This is where we see the best prospects for substantial, sustained, profitable growth in the near and midterm, and this increase in sequential sales is an early but promising sign that our rebuilding efforts are on track,” Kinnon said.
Takeaway: The smaller genomic laboratories are struggling with growing revenues and narrowing losses.
