Biocept Inc (NASDAQ:BIOC) posted first-quarter results that saw its revenue jump 12% year-over-year on the back of its RT-PCR coronavirus (COVID-19) testing services.
For the period ended March 31, 2022, the San Diego, California-based provider of molecular diagnostic assays, products, and services, reported revenue of $19.9 million, compared to $17.8 million in 1Q 2021.
During the quarter, Biocept said it earned $18.6 million in RT-PCR COVID-19 test revenue, $1.3 million in oncology test revenue, $38,000 in development services test revenue and nothing for distributed products, Target Selector RUO kits and CEE-Sure blood collection tubes. The company had collected $16.8 million in RT-PCR COVID-19 test revenue and $2.5 million in oncology test revenue in 1Q 2021.
READ: Biocept Inc says coronavirus testing drove strong rise in full-year 2021 revenue
Biocept accessioned 153,056 commercial samples during the quarter, compared with 141,340 commercial samples during the comparable quarter a year earlier.
The cost of revenues for the quarter was $10.3 million, compared with $9 million for 1Q 2021 with the rise related mainly to the RT-PCR testing business.
Research and development expenses amounted to $1.9 million, compared to $1 million for 1Q 2021, with the increase mainly due to additional costs associated with preparing for the CNSide clinical trial, now called the FORESEE trial, which is expected to begin enrollment during 3Q 2022.
During the quarter, general and admin expenses shot up to $6.8 million, compared to $3.1 in the same period a year earlier, due to severance and stock-based compensation expenses related to separation agreements with former executives.
Sales and marketing expenses for the quarter totaled $3.7 million. The net loss for the quarter was $2.8 million, or $0.16 per share on 16.8 million weighted-average shares outstanding.
Biocept had cash and equivalents as of March 31, 2022, of $27.6 million, compared with $28.9 million as of December 31, 2021.
In a statement accompanying the numbers, Biocept CEO Samuel D. Riccitelli said revenue for the quarter was driven by COVID testing services, but the company also experienced growth in other areas.
"We continued to generate strong growth with our neuro-oncology assay CNSide, with volume up 70% sequentially and up 219% over the prior-year period,” added Riccitelli. “We also expanded our customer base with six of the leading cancer centers with an increasing number of oncologists placing first-time CNSide orders, and now have more than 40 ordering physicians across the US.”
The Biocept boss said the firm exited the quarter with a cash position "sufficient to fund planned operations for at least the next year,” including its planned investments in CNSide cerebrospinal fluid assay that detects cancer that has metastasized to the central nervous system (CNS).
"Following a comprehensive review of our assets and commercial opportunities, we are excited to preview our re-focused and rationalized business strategy to build shareholder value,” said Riccitelli. “Our objective is to lead the emerging category of neurological tumor diagnostics with CNSide and become the partner of choice for biopharma companies developing therapies to treat cancer that has metastasized to the central nervous system.”
According to the company’s CEO, the initial diagnostic scenarios Biocept is focused on represent “a $1.2 billion annual market opportunity” in the US and a $2 billion opportunity worldwide.
Biocept said it plans to generate evidence of clinical utility that will support CNSide reimbursement and adoption through its own and investigator-initiated clinical trials, while forming collaborations with biopharma companies that are developing treatments for CNS tumors or looking to expand uses for existing targeted therapies
“We also will support our community with RT-PCR COVID-19 testing for as long as necessary, while judiciously exiting our blood-based oncology diagnostics business in order to focus resources on the most promising opportunities involving cerebral spinal fluid," concluded Riccitelli.
Biocept will hold a conference call on Tuesday, June 7, 2022, at 4 pm Eastern Time. Participants can pre-register for the conference call here.
The conference call can be accessed at the time by dialing (855) 656-0927 for domestic callers, (855) 669-9657 for Canadian callers and (412) 902-4109 for other international callers.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive