On August 4, 2022 Biodesix, Inc. (Nasdaq: BDSX), a leading data-driven diagnostic solutions company with a focus in lung disease, reported its financial and operating results for second quarter ended June 30, 2022 and provided a corporate update (Press release, Biodesix, AUG 4, 2022, View Source [SID1234617569]).
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"We are thrilled to announce strong growth from our core lung diagnostic testing, with an increase in revenue of 52% over the second quarter of 2021 and 56% over the first quarter of 2022," said Scott Hutton, CEO of Biodesix. "With the recent Medicare coverage of the Nodify CDT test, all five of our core lung diagnostic tests are now covered, which will help drive adoption of the test and improve margins over the long term.
In addition, we announced two exciting corporate arrangements. The first, announced with Royal Phillips, integrates our Nodify Lung tests into its Lung Cancer Orchestrator patient management system to help facilitate digital ordering of the tests following detection of a lung nodule with the ultimate goal of improving patient care and outcomes. The second, announced with Memorial Sloan Kettering Cancer Center and Bio-Rad Laboratories, allows us to leverage the capabilities of these leading organizations to potentially bring new transformative diagnostics to market, including our initial intention to co-develop a molecular minimal residual disease (MRD) test for solid tumors.
Overall, our progress and positive trends in our core lung diagnostics tests in the first half of the year solidifies our confidence in reaffirming our 2022 revenue guidance."
Second Quarter 2022 Financial Results
For the three-month period ended June 30, 2022, as compared to the same period of 2021 (where applicable):
Total revenue of $11.0 million, a decrease of 8%, driven primarily by an anticipated year-over-year decline in COVID-19 diagnostic testing revenue, offset by strong year-over-year growth in core lung diagnostics:
Core lung diagnostic revenue of $7.3 million, reflected a year-over-year increase of 52% that was driven primarily by the increased adoption of Nodify Lung nodule management tests (Nodify CDT & Nodify XL2 tests);
COVID-19 testing revenue of $3.0 million reflected a year-over-year decrease of 51% that was driven by the shift to at-home rapid antigen testing;
BioPharma Services revenue of $0.7 million decreased 29% year-over-year. COVID-related delays in clinical study enrollment and sample shipping logistics have begun to recover but are still impacting timelines for existing and new agreements;
Second quarter 2022 gross margin of $7.0 million, or 64% as a percentage of revenue as compared to 40% in the comparable prior year period primarily driven by the shift of sales to higher-margin core lung diagnostics and away from lower-margin COVID-19 testing;
Operating expenses (excluding direct costs and expenses) of $18.6 million, an increase of 21% driven primarily by growth in sales and marketing to drive our growth in core lung diagnostics sales as well as the recent GeneStrat NGS commercial launch;
Includes non-cash stock compensation expense of $1.4 million as compared to $0.5 million;
Net loss of $15.8 million, an increase of 39%, driven primarily by the loss on extinguishment charge resulting from the restructuring of the contingent consideration agreement with Integrated Diagnostics (Indi);
Cash and cash equivalents of $28.7 million, inclusive of $5.1 million in restricted cash, as of June 30;
Raised net proceeds of $27.3 million during the quarter through debt and equity offerings;
Includes principal payment of $3.0 million on the 2021 Term Loan and $2.0 million for scheduled milestone payment in April 2022 to Indi.
2022 Financial Outlook
The Company reaffirms its 2022 financial outlook and expects to generate between $37.5 million and $39.5 million in total revenue in 2022.
An archived replay of the webcast will be available on the Company’s website for a period of 90 days.
For a full list of Biodesix’s press releases and webinars, please visit Biodesix.com.