OncoCyte Corp, a leading precision diagnostics company, unveiled its financial results for the third quarter (Q3) ending on September 30, 2023. The company is gearing up for a promising commercial launch of its inaugural products in the first half of 2024, featuring the groundbreaking VitaGraft Kidney test, which recently received a favorable coverage decision from the Centers for Medicare & Medicaid Services (CMS). Following this announcement, OncoCyte Corp stock witnessed a surge in stock value.
At the time of this publication, OncoCyte Corp stock (OCX) has witnessed a surge.
OncoCyte Corp
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OncoCyte Corp Q3 2023 Financial Results:
OncoCyte reported consolidated revenue of approximately $0.4 million for the third quarter, primarily attributed to heightened revenue from Pharma Services. The cost of revenue was approximately $0.2 million. Notably, the net consolidated operating loss for the quarter amounted to $6.5 million, marking a substantial increase from the $1.7 million loss incurred in the third quarter of 2022. This shift was influenced by a non-cash benefit of $6.1 million for the change in fair value of contingent consideration recognized in the prior year.
Expense Management and Cash Burn Reduction:
Research and Development expenses saw a 48% rise to $2.2 million, underscoring the continued investment in the development of assays such as DetermaIO, VitaGraft, and DetermaCNI. Meanwhile, General and Administrative expenses experienced a 56% decrease, totaling $2.5 million, primarily due to reduced stock-based compensation and personnel costs. Sales and Marketing expenses saw a 76% increase, reaching $0.7 million, driven by heightened activities in anticipation of the VitaGraft Kidney test launch.
CEO Josh Riggs remarked 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 robust positioning for growth in 2024 and beyond, with a sustained cash burn below $5 million quarterly, and a range of 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 underscores a disciplined approach to resource management, with a primary focus on bolstering upcoming product launches and maintaining a resilient financial position.
For a comprehensive 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 stands poised for a transformative 2024, with the anticipated commercial launch of VitaGraft Kidney and GraftAssure. The company’s strategic emphasis on product development and market readiness, combined with prudent financial stewardship, lays the foundation for potential revenue growth and value generation for shareholders.
