Transgenomic (TBIO) Tops Q2 EPS by 11c

Transgenomic (NASDAQ: TBIO) reported Q2 EPS of ($0.30), $0.11 better than the analyst estimate of ($0.41). Revenue for the quarter came in at $7 million versus the consensus estimate of $7.1 million.

“Transgenomic made solid progress in the second quarter in our ongoing transformation into an advanced technology company primarily focused on commercializing the many applications of our Multiplexed ICE COLD-PCR (MX-ICP) technology,” said Paul Kinnon, President and Chief Executive Officer. “Importantly, we reported good increases in sales in our strategically important businesses, with overall net sales up four percent year over year, and up 11% after adjusting for our divested Surveyor Kit product line. In the key Laboratory Services segment, we recorded a 26% increase in sales compared to the year-earlier period, as the impact of new product introductions began to manifest. At the same time, we were successful in continuing to manage costs, with operating expenses down compared to the second quarter in 2014 despite our investments in new products. We also are very pleased to report that gross margins in the quarter strengthened compared to last year, rising to 41% compared to 35% in 2014, a level we expect to maintain and seek to further improve.”

Mr. Kinnon continued, “We are delivering on our commitments to achieve continued progress this year in commercializing MX-ICP. Since the start of the second quarter, we incorporated MX-ICP technology in our Biomarker Identification business, making it available to all pharmaceutical and biotechnology customers who are developing biomarkers for targeted therapies and precision medicine applications. At ASCO, we announced the launch of our EGFR tests for lung and colon cancer, the first in a series of CLIA mutation detection tests that leverage MX-ICP’s exceptional accuracy and sensitivity and its ability to work with multiple patient sample types. We are starting to gain traction with these first tests and additional tests are moving through the pipeline. At the end of the quarter, we launched our ICEme™ Mutation Enrichment Kits available to cancer researchers worldwide. The initial menu includes 17 clinically actionable cancer mutations, and the kits are customizable and work on all sequencing platforms. Earlier this month, we announced initiation of a pilot clinical study in collaboration with four leading biopharmaceutical oncology firms to validate the accuracy and utility of MX-ICP-based liquid biopsies to guide and monitor cancer clinical trials. The results of this study, if positive, could serve as critical confirmation of our liquid biopsy technology, and the fact that multiple global oncology leaders are participating is very encouraging.

Mr. Kinnon concluded, “We also are delighted to announce the formation of the Transgenomic Clinical-Commercial Advisory Board for our MX-ICP technology. Our distinguished founding members are leaders in oncology and genomics from academia and industry. We view their participation as another confirmation of the exceptional promise of this technology to help transform the diagnosis and treatment of cancer. As we progress into the second half of the year, we believe our efforts to date are starting to bear fruit, as we work to accelerate the momentum already underway that we believe will enable us to realize the clinical and commercial promise of MX-ICP.”

For earnings history and earnings-related data on Transgenomic (TBIO) click here.

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