Biocept posts sixth consecutive growth quarter thanks to increase in commercial test volume

Biocept Inc (NASDAQ: BIOC) posted another record quarter as the commercial provider of liquid biopsy kits for cancer saw an increase in test volume.

The San Diego-based biotech firm delivered revenue of $1.8 million during 4Q 2019, an increase of 108% over the same period last year.

The gain was largely driven by commercial revenue, up 94% compared to 4Q 2018 and 11% over the previous quarter in 2019.

READ: Biocept says published clinical data further validates Target Selector to identify cancer-related mutations

It is the company’s sixth consecutive quarter of growth, CEO Michael Nall told shareholders in a statement Wednesday.

“Our growth for the quarter was driven by year-over-year increases of 46% in commercial test volume and 34% in average reimbursement per patient, predominantly due to reporting on more tests per accession ordered by referring doctors,” Nall said.

Fourth-quarter cost of revenues per accession declined 12% versus the fourth quarter of 2018, the company said.

“While growing revenues, we also benefitted from operating efficiencies, including automation initiatives in our CLIA-certified laboratory,” Nall said. “These efficiencies combined with higher sample volume moved us significantly closer to positive gross margin.”

For its fiscal 2019, Biocept delivered $5.5 million in revenue, a 70% increase from the $3.3 million it posted in 2018.

During the year, the firm launched the first-and-only liquid biopsy test to evaluate cerebrospinal fluid as well as test panels for lung and breast cancer. It also added a new revenue stream via sales of its Target Selector research-use only kits and expanded its intellectual property portfolio with new patents. 

In 2019 the firm raised net proceeds of $17.5 million from two equity offerings and warrant exercises.

Its net loss for 4Q 2019 was $5.7 million, or $0.20 per share, down from $6 million, or $1.43 per share during the year-ago period.

Biocept’s shares jumped around 9% in aftermarket trading Wednesday to sit around $0.38.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Story by ProactiveInvestors