Oncocyte Shares Fall On Posting Wider Than Expected Q2 Loss
- Oncocyte Corporation's (NASDAQ: OCX) Q2 revenues were $2.03 million, compared to $143,000 in Q2 FY20 and beating consensus of $1.57 million.
- Most revenues were attributable to tech transfer under a December licensing deal with Burning Rock Biotech for Oncocyte's DetermaRx lung cancer test.
- Revenues from DetermaRx also increased compared to the prior year's quarter.
- During a Q2 conference call, Oncocyte CEO Ron Andrews said, "we have continued our expansion into new hospitals with a total of 176 onboarded hospitals at the end of Q2 … an approximate 43% growth sequentially. At the end of Q2, we also had a total of 317 onboarded physicians, which is a 45% sequential increase."
- Pharma Services revenues were slow in contrast, reflecting variability in the timing of customer projects.
- The company still plans to launch a second clinical test, DetermaIO, by the end of this year.
- Oncocyte incurred an EPS loss of $(0.12), compared to $(0.14) in Q2 FY20. Analysts had expected a lower loss of $(0.10).
- Oncocyte's SG&A expenses doubled to $10.6 million from $5.3 million, driven by non-cash stock-based compensation expenses.
- The firm also incurred a $2.5 million severance expense from its acquisition of Chronix Biomedical.
- Oncocyte ended Q2 with $46.5 million in cash and cash equivalents and $1.1 million in marketable securities.
- Price Action: OCX shares are down 19.10% at $4.05 during the market session on the last check Wednesday.
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