Satellite Banner
Scientific Community
Become a Member | Sign in
Home>News>This Article

Vermillion Reports Fourth Quarter and Full Year 2013 Results

Published: Saturday, March 08, 2014
Last Updated: Saturday, March 08, 2014
Bookmark and Share
Company will next pursue a national price for its OVA1 test in 2014.

Vermillion, Inc. has reported on its results for the fourth quarter and full year ended December 31, 2013.

Q4 and 2013 Key Developments

• OVA1® product revenue increased 29% to $2.1 million in 2013 versus 2012 due primarily to improved claims resolution and higher realized revenue per test.
• For the full year 2013, OVA1 tests totaled 17,004 tests, up 3% from 16,460 in 2012. For areas where Vermillion sales representatives called on physician offices, volumes increased by more than 15% from 2012.
• At December 31, 2013, the company's cash and cash equivalents totaled approximately $29.5 million, up from $8.0 million at the end of the previous year. The increase included $17.6 million received in connection with the exercise of common stock warrants in December 2013.
• During December 2013, the Center for Medicare & Medicaid Services (CMS) issued its final Clinical Lab Fee Schedule determinations. The guidance specifies that pricing for OVA1 will be determined using a market value based method (Gap-Fill). This resolved a significant market concern regarding the methodology for pricing OVA1. Vermillion will next pursue a national price through CMS for its OVA1 test in 2014.
• Two clinical publications in the quarter provided additional evidence to help physicians and health care providers understand the clinical value of OVA1. One study showed the positive performance of OVA1 in triage of women with early-stage cancer compared to today's standard of care. The second study assessed the value of integrating OVA1 into standard care practices to help assure a gynecologic oncologist is consulted when a woman is at higher risk for an ovarian malignancy.
• James T. LaFrance joined the company's board and was elected chairman, bringing almost 30 years of diagnostic industry experience to the company's board of directors.
• Marian E. Sacco joined Vermillion as senior vice president of sales and marketing and chief commercial officer. She brings more than 25 years of diagnostics experience in product development, worldwide marketing, operations and sales management in both private and public companies focused on women's health and oncology.

Q4 2013 Financial Results
Total revenue in the fourth quarter of 2013 increased 39% to $1.6 million from $1.1 million in the same year-ago quarter. Fourth quarter of 2013 revenue was comprised of $1.5 million in OVA1® product revenue and $113,000 in license revenue.

The OVA1 product revenue in both quarters includes an additional royalty component of revenue based on 33% of the Quest Diagnostics gross margin on OVA1 tests. Vermillion recognizes this portion of revenue when it is reported by Quest Diagnostics in a 'true-up' after the end of the calendar year.

Fourth quarter of 2013 product revenue was comprised of $211,000 from 4,218 OVA1 tests performed (at the fixed $50 per test) and $1.3 million from the 33% royalty on 16,745 OVA1 tests reported by Quest Diagnostics as resolved in 2013. The resolved tests include both reimbursed and unreimbursed tests for which Quest Diagnostics considers the payment status as final.

By comparison, revenue in the fourth quarter of 2012 included $213,000 of product revenue from 4,260 OVA1 tests performed (at the fixed $50 per test), and $816,000 from the 33% royalty on 13,709 OVA1 tests reported by Quest Diagnostics as resolved in 2012.

Total operating expenses in the fourth quarter of 2013 increased to $3.3 million from $2.4 million in the same year-ago quarter. The increase was primarily due to expanded research and development headcount and Johns Hopkins University collaboration costs to advance Vermillion's platform migration and next generation test.

Net loss for the fourth quarter was $1.8 million or $(0.07) per share, as compared to a net loss of $1.4 million or $(0.09) per share in the same year-ago quarter.

Full Year 2013 Financial Results
Total revenue for the full year of 2013 increased 23% to $2.6 million from $2.1 million in 2012. Total revenue in 2013 was comprised of $2.1 million in product revenue from OVA1 and $454,000 in license revenue. Product revenue from OVA1 in 2013 included $851,000 from 17,004 OVA1 tests performed (at the fixed $50 per test) and $1.3 million from the 33% royalty reported by Quest Diagnostics for 2013.

By comparison, revenue in 2012 was comprised of $1.6 million in product revenue from OVA1 and $454,000 in license revenue. Product revenue from OVA1 in 2012 included $824,000 from 16,460 OVA1 tests performed (at the fixed $50 per test) and $816,000 from the 33% royalty reported by Quest Diagnostics for 2012.

For the full year of 2013, total operating expenses were $11.3 million as compared to $11.4 million in 2012.

For the full year of 2013, net loss was $8.8 million or $(0.42) per share as compared to a net loss of $7.1 million or $(0.48) per share in 2012. The prior year included one-time gains on a sale of an instrument business and a litigation settlement totaling $2.5 million.

As of December 31, 2013, cash and equivalents totaled $29.5 million. The company utilized $2.9 million in cash in the fourth quarter of 2013, and expects between $3.5 million and $4.0 million in cash outlay during the first quarter of 2014. The expected increase is due to ongoing costs of the company's research and development programs, as well as expansion of its sales force in 2014.

Management Commentary
"Our revenue growth in 2013 demonstrates the value of Vermillion's increased efforts in directly promoting the use of OVA1 in the U.S. market," said Thomas McLain, Vermillion's president and CEO. "With the knowledge and experience gained during the year, we plan to significantly expand our sales efforts in 2014. While we will continue to partner with Quest Diagnostics to make OVA1 available in the U.S., we expect that our direct efforts will lead to a higher volume of tests and increased revenue per test. We plan to apply the proceeds from the warrant exercise in December to support this expanded direct commercialization effort, as well as advance our next-generation ovarian cancer diagnostic."

Further Information

Join For Free

Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 3,900+ scientific posters on ePosters
  • More than 5,300+ scientific videos on LabTube
  • 35 community eNewsletters

Sign In

Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

Vermillion Awarded $7.5M Grant
The grant awarded is to aid the development of a multi-site pelvic mass registry.
Friday, May 22, 2015
New Clinical Study on the Relationship Between Imaging and OVA1®
New analysis explores interactions between clinical risk factors used in pre-surgical assessment.
Friday, March 21, 2014
American Journal of Obstetrics & Gynecology Publishes New Clinical Study of OVA1 Test
Significantly superior early-stage sensitivity shown versus CA125, modified ACOG guidelines or overall clinical assessment in premenopausal and postmenopausal women planning surgery.
Thursday, November 14, 2013
Vermillion's OVA1 Receives New Statement by SGO
OVA1® has received new statement on clinical validation and medical use.
Tuesday, July 16, 2013
Vermillion Supports First World Ovarian Cancer Day
Vermillion offers women new hope with OVA1, a FDA-cleared test designed to aid in the prediction of malignancy prior to surgery on an ovarian mass.
Thursday, May 16, 2013
Vermillion Reports First Quarter 2013 Results
Building upon early success of OVA1, recent funding sets stage for 2013-2015 strategic plan.
Thursday, May 16, 2013
U.S. Army and Vermillion Sign Cooperative Research and Development Agreement
U.S. Army and Vermillion to assess health and economic benefits of OVA1 as a standard of care.
Friday, April 19, 2013
Vermillion Announces Positive Top-Line Results from the OVA500 Multi-Center Study
Outstanding performance reported in early-stage ovarian cancer and across broad range of malignancy subtypes.
Friday, December 28, 2012
Vermillion Receives Notice of Allowance from USPTO
Company receives notice of allowance for patent on methods for diagnosing ovarian cancer.
Thursday, September 27, 2012
Vermillion Receives Notice of Allowance for Patent of Biomarker for Ovarian Cancer
Patent makes claims in the uses of urinary sMAP in the diagnosis of ovarian cancer.
Tuesday, July 24, 2012
Vermillion Receives Notice of Allowance for Patent on Platelet Biomarkers of Angiogenesis
Patented biomarkers used to measure ongoing angiogenic activity.
Tuesday, March 06, 2012
Vermillion Completes the Acquisition of Correlogic Systems' Ovarian Cancer Diagnostics Business for $435,000
The assets include more than 1,000 prospectively collected diagnostic samples from ovarian tumor studies, three biomarker-related pending U.S. patents, proprietary software and other intellectual property.
Thursday, December 22, 2011
Vermillion Announces Issuance of Patent for Lung Cancer
The United States Patent and Trademark Office (USPTO) has issued patent number 8,014,952 entitled " Serum Biomarkers in Lung Cancer " to the Company.
Thursday, September 08, 2011
Vermillion Announces Presentation of Positive Ovarian Biomarker Data for Next Generation Test
Results presented by collaborators at Johns Hopkins University School of Medicine at the 42nd Annual Meeting in Orlando, Florida.
Thursday, March 10, 2011
Scientific News
Big Genetics in BC: The American Society for Human Genetics 2016 Meeting
Themes at this year's meeting ranged from the verification, validation, and sharing of data, to the translation of laboratory findings into actionable clinical results.
Cancer Genetics: Key to Diagnosis, Therapy
When applied judiciously, cancer genetics directs caregivers to the right drug at the right time, while sparing patients of unnecessary or harmful treatments.
Accelerating the Detection of Foodborne Bacterial Outbreaks
The speed of diagnosis of foodborne bacterial outbreaks could be improved by a new technique developed by researchers at the Georgia Institute of Technology.
Top 10 Life Science Innovations of 2016
2016 has seen the release of some truly innovative products. To help you digest these developments, The Scientist have listed their top picks for the year.
Scientists Identify Unique Genomic Features in Testicular Cancer
The findings may shed light on factors in other cancers that influence their sensitivity to chemotherapy.
Secret Phenotypes: Disease Devils in Invisible Details
Algorithmic deep phenotyping exposes masses of hidden traits and possible subtle genetic connections relevant to unseen influences on disease.
Cracking the Code of a Deadly Virus
Researchers have exploited weaknesses in VEEV's genetic code, creating a far less deadly variant.
Hunting the Missing Link Between Genetics and the Environment
The International Phenome Centre Network (IPCN) works to transform healthcare through phenomics - the dynamic interactions between our genes and our environment.
Repurposing Genes for Brain Development
Mammalian bone gene may be repurposed to promote cognition in humans.
Enhancing CRISPR to Explore Further
Researchers have developed sOPTiKO, a more efficient and controllable CRISPR genome editing platform.
Skyscraper Banner

SELECTBIO Market Reports
Go to LabTube
Go to eposters
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
3,900+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
5,300+ scientific videos