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

Vermillion Reports First Quarter 2013 Results

Published: Thursday, May 16, 2013
Last Updated: Thursday, May 16, 2013
Bookmark and Share
Building upon early success of OVA1, recent funding sets stage for 2013-2015 strategic plan.

Vermillion, Inc. has reported on its financial results for the first quarter ended March 31, 2013.

Q1 2013 Financial Results
Total revenue in the first quarter of 2013 was $328,000, compared to $312,000 in the same year-ago quarter. First quarter 2013 revenue was comprised of $214,000 in OVA1 product sales and $114,000 in license revenue, as compared to $198,000 of OVA1 product sales and $114,000 in license revenue in the year-ago quarter.

First quarter of 2013 product revenue was derived from 4,274 OVA1 tests performed at the fixed $50 per test as reported by the company's OVA1 marketing partner, Quest Diagnostics. This was an 8% increase from 3,952 OVA1 tests performed at the fixed $50 per test in the year-ago quarter.

The OVA1 product revenue in both periods does not include the additional royalty component of revenue based on 33% of Quest Diagnostics gross margin. Vermillion recognizes this portion of revenue when it is reported by Quest Diagnostics in an annual 'true-up' after the end of the calendar year.

The true-up is based on reimbursed and unreimbursed tests for which Quest Diagnostics considers the payment status as final. For the full year of 2012, the true-up provided $816,000 in revenue to Vermillion or an additional $60 per test.

Total operating expenses in the first quarter of 2013 were $2.9 million as compared to $2.4 million in the same year-ago quarter. The increase is primarily due to one-time items, including costs related to the delayed 2012 annual shareholder meeting held in March 2013, a proxy contest and CEO transition, partially offset by lower sales and marketing costs. Net loss for the first quarter was $2.6 million or $(0.17) per share, as compared to $1.8 million or $(0.12) per share in the same year-ago quarter.

As of March 31, 2013, cash and equivalents totaled $5.8 million. Following the private placement completed on May 13, 2013, Vermillion had approximately $16.6 million in cash and equivalents.

The company plans to use the cash on hand and the expected proceeds from exercise of the warrants to accelerate its research, clinical and commercialization programs.

As a result, guidance for 2013 cash-based operating expenditures is being increased to a range of $12 million to $13 million versus the previous guidance of $9.5 million to $10 million.

2013-2015 Objectives
The recently completed investment transaction was structured to provide funding for the company's 2013-2015 strategic plan. "This investment in Vermillion positions us to improve the quality of care for women with ovarian cancer," said Thomas McLain, Vermillion's president and CEO. "It provides both strategic and financial resources to build on our early success with OVA1 as the first FDA-cleared multi-biomarker blood test to aid in the diagnosis and treatment of ovarian cancer."

"Our experience in growing the OVA1 market with Quest Diagnostics has defined the key factors for building market awareness and expanding its use," continued McLain. "In 2013 and 2014 we will focus on positioning the patient outcome and cost advantages of the on-label usage of OVA1 versus off-label usage of CA-125 for the pre-surgical triage of suspicious ovarian masses."

Proceeds from the transaction will support the generation of additional clinical and economic data aligned with the company's efforts to secure treatment guideline support and expanded insurance coverage.

These studies will also be essential to building understanding of the benefits of integrating OVA1 with current clinical practice and showing how OVA1 can greatly reduce the percentage of women who receive substandard care.

The funding will also support two important strategic initiatives:

• The company will migrate OVA1 to a clinical testing platform commonly available around the world. This will expand the market for the test to more laboratories and hospitals and enable licensing OVA1 in non-U.S. markets. It will require the successful execution of validation and clinical studies to support submission of a 510-K and FDA clearance. The company targets launch on this new platform by the end of 2014.
• The company will also use the funding to accelerate the development of a next generation ovarian cancer diagnostic. This test will utilize a combination of current and novel biomarkers in a new algorithm to increase specificity and positive predictive value, while significantly reducing false positives. The company expects to announce proof of concept results during the second quarter and targets the launch of a next generation test in 2015.


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 3,500+ scientific posters on ePosters
  • More than 5,000+ 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 TechnologyNetworks.com 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
Vermillion Reports Fourth Quarter and Full Year 2013 Results
Company will next pursue a national price for its OVA1 test in 2014.
Saturday, March 08, 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
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
Potential of New Insect Control Traits in Agriculture
Researchers have discovered a protein that shows promise as an alternate corn rootworm control mechanism.
Fighting Cancer with Sticky Nanoparticles
Treatment that uses bioadhesive nanoparticles drug carriers proved more effective than conventional treatments for certain cancers.
Fighting Plant Pathogens with RNA
Researchers develop strategy that could lead to environmentally friendly fungicide to fight pathogens.
Smart Material Hunts Cancers
Team has created smart material that locates and images cancer or tumour sites in tissue.
Examining mtDNA May Help Identify Unknown Ancestry That Influences Breast Cancer Risk
Researchers studying mtDNA in a group of triple negative breast cancer patients found that 13 percent of participants were unaware of ancestry that could influence their risk of cancer.
Gene Therapy Technique May Help Prevent Cancer Metastasis
Gene-regulating RNA molecules could help treat early-stage breast cancer tumors before they spread.
Enhancing Antibiotics to Defeat Resistant Bacteria
Scientists enhance ability of antibiotics to defeat resistant types of bacteria using molecules called PPMOs
MRI Guidance Aids Stem Cell Delivery
Scientists have delivered stem cells to the brain with unprecedented precision, infusing the cells under real-time MRI guidance.
High-Capacity Nanoparticles
New type of nanoparticle can now have three or more drugs packaged within it, allowing for customised cancer therapy.
UTSW Creates Nanoparticles That Target Lung Cancer Cells
Researchers at UTSW have developed a synthetic polymers that could deliver nucleic acid drugs while possessing enough structural diversity to discover cancer cell-specific nanoparticles.
SELECTBIO

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
3,500+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
5,000+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FOR FREE!