OncoCyte Corp (OCX) Reports Q3 2023 Financial Results with Key Product Launches on the Horizon
OncoCyte Corp (NASDAQ:OCX) announced Q3 2023 financial results with a net loss of $6.5 million.
Positive CMS coverage decision for VitaGraft Kidney test, with product launches expected in 1H 2024.
Reduced cash burn to $3.6 million in Q3, with $14.2 million in cash and equivalents on hand.
Revenue for Q3 stood at approximately $0.4 million, primarily from increased Pharma Services.
On November 9, 2023, OncoCyte Corp (NASDAQ:OCX), a precision diagnostics company, disclosed its financial results for the third quarter ended September 30, 2023. The company is gearing up for the commercial launch of its first products in the first half of 2024, including the innovative VitaGraft Kidney test, which has recently received a positive coverage decision from CMS.
Financial Performance Overview
OncoCyte reported consolidated revenue of approximately $0.4 million for the third quarter, mainly attributed to increased revenue from Pharma Services. The cost of revenue was approximately $0.2 million. The net consolidated operating loss for the quarter was $6.5 million, a significant increase from the $1.7 million loss in the third quarter of 2022. This change was influenced by a non-cash benefit of $6.1 million for the change in fair value of contingent consideration recognized in the previous year.
Expense Management and Cash Burn Reduction
Research and Development expenses rose by 48% to $2.2 million, reflecting continued investment in developing assays such as DetermaIO, VitaGraft, and DetermaCNI. General and Administrative expenses decreased by 56% to $2.5 million, primarily due to reduced stock-based compensation and personnel expenses. Sales and Marketing expenses increased by 76% to $0.7 million, driven by ramped-up activities in anticipation of the VitaGraft Kidney test launch.
CEO Josh Riggs commented on the company's financial discipline, stating,
Financially, we reduced our cash burn to $3.6 million in the third quarter, the lowest level in several years and a reflection of the sharp reductions in non-revenue related activities that we instituted earlier in the year."
He further emphasized the company's strong positioning for growth in 2024 and beyond, with a maintained cash burn below $5 million quarterly and multiple products nearing commercialization.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, OncoCyte held $14.2 million in cash, cash equivalents, and marketable securities. The balance sheet reflects a disciplined approach to managing resources, with a focus on supporting upcoming product launches and maintaining a robust financial position.
For a detailed view of OncoCyte's financials, the company's Quarterly Form 10-Q will be filed with the Securities and Exchange Commission on November 9, 2023.
Looking Ahead
OncoCyte is poised for a transformative 2024 with the expected commercial launch of VitaGraft Kidney and GraftAssure. The company's strategic focus on product development and market readiness, coupled with prudent financial management, sets the stage for potential revenue growth and value creation for shareholders.
For more information on OncoCyte's financial results and strategic initiatives, investors are encouraged to access the webcast and conference call held on November 9, 2023, or visit the company's website at https://investors.oncocyte.com.
OncoCyte's commitment to precision diagnostics and the upcoming product launches reflect the company's dedication to innovation and patient care, which may interest value investors and potential GuruFocus.com members seeking opportunities in the healthcare diagnostics sector.
Explore the complete 8-K earnings release (here) from OncoCyte Corp for further details.
This article first appeared on GuruFocus.
