Opko Q3 Revenues Up 108 Percent on Strength of BioReference
Nov 8, 2016 12:50:55 GMT
icemandios and drangled like this
Post by gutset on Nov 8, 2016 12:50:55 GMT
www.genomeweb.com/business-news/opko-q3-revenues-108-percent-strength-bioreference-sales
NEW YORK (GenomeWeb) – Opko Health reported after the close of the market Monday that its third quarter revenues jumped 108 percent compared to Q3 2015, driven primarily by revenues from clinical lab BioReference Laboratories, which it acquired in August 2015.
For the three-month period ended Sept. 30, Opko's revenues rose to $298.0 million from $143.0 million a year ago, missing Wall Street analysts' consensus estimate for revenues of $322.0 million.
"This increase in revenue was generated by our diagnostics business at BioReference," Opko Executive Vice President Steven Rubin said during a conference call with analysts after the release of the results.
"During the quarter, we continued to make improvements in the financial performance at BioReference through a revenue cycle management program that was initiated during the second quarter of 2016. The most critical component of this program was the successful implementation of a new billing system [that] will provide us with the power to more effectively manage our billing process as well as our payor relationships while … effectively appealing coverage denial."
Opko's net loss for the quarter was $15.0 million, or a loss of $.03 a share, compared with net income of $128.2 million, or $.18 a share, in the same period last year. The loss per share matched analysts' consensus estimate. The 2015 period included a non-recurring income tax benefit related to the release of a valuation allowance against the firm's deferred tax assets because of the BioReference acquisition.
R&D spending in the first quarter rose 29 percent to $24.4 million from $18.9 million, while SG&A costs increased 126 percent to $124.9 million from $55.3 million. The increase in selling, general and administrative expenses was primarily due to the acquisition of BioReference in August 2015, which accounted for $100.3 million and $35.3 million of SG&A expenses in the third quarter of 2016 and 2015, respectively.
The firm ended the quarter with $144.6 million in cash and cash equivalents.
"Our BioReference Laboratories and its GeneDx unit continue to grow and the utilization of our innovative 4Kscore test for predicting the probability of aggressive prostate cancer remains strong," Phillip Frost, chairman and CEO of Opko, said in a statement.
The firm said that it is working to obtain positive coverage for the test by its local Medicare administrator.
During Q3 around 16,000 4Kscore tests were performed, a 9 percent increase from the quarter ended June 30, and a 365 percent increase over Q3 2015.
The firm expects to commence a multi-center clinical study of its Claros POC diagnostic test for prostate specific antigen later this year.
It expects to submit its application to the US Food and Drug Administration for approval of the assay in mid-2017, and commence an additional multi-center clinical study for its POC testosterone test in 2017 followed by a 510(k) submission in late 2017.
Shares of Opko were down almost 1 percent to $9.66 in after-hours trading today on the Nasdaq.
NEW YORK (GenomeWeb) – Opko Health reported after the close of the market Monday that its third quarter revenues jumped 108 percent compared to Q3 2015, driven primarily by revenues from clinical lab BioReference Laboratories, which it acquired in August 2015.
For the three-month period ended Sept. 30, Opko's revenues rose to $298.0 million from $143.0 million a year ago, missing Wall Street analysts' consensus estimate for revenues of $322.0 million.
"This increase in revenue was generated by our diagnostics business at BioReference," Opko Executive Vice President Steven Rubin said during a conference call with analysts after the release of the results.
"During the quarter, we continued to make improvements in the financial performance at BioReference through a revenue cycle management program that was initiated during the second quarter of 2016. The most critical component of this program was the successful implementation of a new billing system [that] will provide us with the power to more effectively manage our billing process as well as our payor relationships while … effectively appealing coverage denial."
Opko's net loss for the quarter was $15.0 million, or a loss of $.03 a share, compared with net income of $128.2 million, or $.18 a share, in the same period last year. The loss per share matched analysts' consensus estimate. The 2015 period included a non-recurring income tax benefit related to the release of a valuation allowance against the firm's deferred tax assets because of the BioReference acquisition.
R&D spending in the first quarter rose 29 percent to $24.4 million from $18.9 million, while SG&A costs increased 126 percent to $124.9 million from $55.3 million. The increase in selling, general and administrative expenses was primarily due to the acquisition of BioReference in August 2015, which accounted for $100.3 million and $35.3 million of SG&A expenses in the third quarter of 2016 and 2015, respectively.
The firm ended the quarter with $144.6 million in cash and cash equivalents.
"Our BioReference Laboratories and its GeneDx unit continue to grow and the utilization of our innovative 4Kscore test for predicting the probability of aggressive prostate cancer remains strong," Phillip Frost, chairman and CEO of Opko, said in a statement.
The firm said that it is working to obtain positive coverage for the test by its local Medicare administrator.
During Q3 around 16,000 4Kscore tests were performed, a 9 percent increase from the quarter ended June 30, and a 365 percent increase over Q3 2015.
The firm expects to commence a multi-center clinical study of its Claros POC diagnostic test for prostate specific antigen later this year.
It expects to submit its application to the US Food and Drug Administration for approval of the assay in mid-2017, and commence an additional multi-center clinical study for its POC testosterone test in 2017 followed by a 510(k) submission in late 2017.
Shares of Opko were down almost 1 percent to $9.66 in after-hours trading today on the Nasdaq.