=Cancer Genetics (CGIX) reported earnings on Tue 15 Aug 17 (b/o)

Cancer Genetics misses by $0.01, misses on revs; acquires vivoPHARM, accretive

• Reports Q2 (Jun) loss of $0.16 per share, $0.01 worse than the Capital IQ Consensus of ($0.15); revenues fell 5.7% year/year to $6.6 mln vs the $7.97 mln Capital IQ Consensus.
  • 170 biopharma projects, up from 111 in the same period last year.
  • $7.1 New Contract Bookings for biopharma customers.
  • Launched FDA-approved universal companion diagnostic for lung cancer leveraging Thermo Fisher's next generation sequencing panel Oncomine Dx target test.
  • Launched clinically actionable, multi-gene, liquid biopsy test for lung cancer patients, Liquid::Lung-cfDNA, changing the paradigm for lung cancer monitoring.
• vivoPHARM ACQUISITION HIGHLIGHTS
  
  • Bolsters growth with diverse global customer base of biopharma partners, especially in Europe and Asia-Pacific
  • Over 55 active biopharma studies and trials with 30 of those driven by immune-oncology related projects
  • 90% of vivoPharm's contracts are delivered within 90 days of being signed
  • Expected to immediately add approximately $5 million revenue and help in achieving profitable growth
  • vivoPharm studies have supported over 200 IND submissions
  • Total purchase price of USD $12 Million, with proceeds to be 90% CGIX stock, and 10% cash
• Mr. Panna Sharma, President and CEO of CGI commented, "During the second quarter of 2017 we continued our drive to become the oncology diagnostics partner of choice for biopharmaceutical companies and clinicians. During the second quarter we grew our clinical services revenue by approximately 20% and overall revenue for the first half of the year grew 4% over last year. Our revenue from biopharma projects during the second quarter were uneven due to the delay of 9 clinical trials, although we expect many of them to start over the next 2 quarters. We continue to be focused on reducing our losses and operating expenses as we target near-term profitability. We also achieved record demand from biotech and pharma customers as demonstrated by $7.1 million in new contracts and bookings. We are now supporting over 170 clinical trials serving 9 of the top 10 biopharma companies globally. We also closed 13 new biotech and pharma customers during the second quarter of 2017 that will support the reacceleration of our Biopharma revenue."