Categories Earnings, Health Care

Biocept (BIOC) posts wider-than-expected loss in Q4

The liquid biopsy market for oncology is expected to be a $17 billion market by 2023

Biocept, Inc. (NASDAQ: BIOC) reported a narrower loss in the fourth quarter of 2019 driven by higher revenue. The bottom line was wider than the analysts’ expectations while the top line exceeded consensus estimates.

Net loss was $5.71 million or $0.20 per share compared to a loss of $6.01 million or $1.43 per share in the previous year quarter. Net revenue jumped by 108% to $1.78 million. Analysts had expected a loss of $0.10 per share on revenue of $1.7 million for the fourth quarter.

diagnostics
Image for representation only. Courtesy: Michal Jarmoluk from Pixabay

The results were driven by a 46% year-over-year jump in commercial test volume and 34% in average reimbursement per patient. This was due to reporting more tests per accession ordered by referring doctors.

The top-line growth was driven by commercial test, development services test, as well as Target Selector RUO kits, which were commercially launched in early 2019, and CEE-Sure blood collection tubes. Biocept exited 2019 with 37 issued patents globally for its highly sensitive method of detecting cancer biomarkers.

The company has historically incurred substantial net losses and expects losses to continue due to costs from laboratory operations, sales and marketing, and ongoing research and development. This will continue to have a negative impact on working capital, total assets, and stockholders’ equity.

Research and development expenses declined by 8% for the fourth quarter helped by the lower allocated cost of laboratory associated activities. However, general and administrative expenses increased by 19% due mainly to a reclass of customer service and related expenses from sales & marketing to G&A.

The liquid biopsy market for oncology is expected to be a $17 billion market by 2023. The company focuses on patients with lung, breast, prostate and colorectal cancers. Biocept aims to increase market penetration into the emerging liquid biopsy segment with a focus on neuro-oncology, urology, breast, and lung cancer treatment segments.

Also Read:  Moderna (MRNA) set to take advantage of opportunity in vaccines

The stock ended Wednesday’s regular session up 12.43% at $0.35. Following the earnings, the stock fell by 3.43% in the after-hours trading. The shares remained overvalued at the current levels with a bullish pattern trend. The performance outlook is negative in the near-term and long-term.

Most Popular

Major earnings conferences to watch this week

After registering a slow recovery in the first half of the week, the markets pared these gains on Thursday and Friday. The weakness witnessed in the latter half of the

Illumina (ILMN) is uniquely placed to offer long-term returns. Here’s why

Illumina, Inc. (NASDAQ: ILMN), a pioneer in genome sequencing technology, has strived to strengthen its unique position in the healthcare sector through strategic partnerships and technological innovation. Its performance so

The COVID-19 pandemic gave these companies an unexpected opportunity

The COVID-19 pandemic raged through the first half of this year and continues to impact the world without signs of abating. Amid this health crisis, several companies reported strong results

Top