Corporate Banner
Satellite Banner
Technology
Networks
Scientific Communities
 
Become a Member | Sign in
Home>News>This Article
  News
Return

Vermillion Reports Third Quarter 2013 Results

Published: Friday, November 15, 2013
Last Updated: Friday, November 15, 2013
Bookmark and Share
Company reports Q3 2013 financial results and key developments.

Vermillion, Inc. has reported on its financial results for the third quarter ended September 30, 2013.

Q3 2013 Financial Results
Total revenue in the third quarter of 2013 was $330,000 compared to $319,000 in the same year-ago quarter. Third quarter 2013 revenue was comprised of $216,000 in OVA1® product sales and $114,000 in license revenue.

Third quarter of 2013 product revenue was derived from 4,328 OVA1 tests performed at the fixed $50 per test as reported by Quest Diagnostics. This represents a 5.6% increase in test volume compared to approximately 4,100 OVA1 tests performed in the year-ago quarter. Although covered lives have decreased to approximately 67.0 million due to the previously announced BlueCross BlueShield Technical Evaluation Center position, it did not affect test sale volumes for the 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.

Total operating expenses were $2.6 million in both the third quarter of 2013 and the same year-ago quarter. For the nine months ended September 30, 2013, total operating expenses were $7.9 million as compared to $9.0 million in the same year-ago period.

Net loss for the third quarter was $2.3 million or $(0.10) per share, as compared to a net loss of $2.0 million or $(0.13) per share in the same year-ago quarter. For the nine months ended September 30, 2013, net loss was $7.0 million or $(0.36) per share as compared to a net loss of $5.8 million or $(0.39) per share in the same year-ago period. The prior year included one-time gains on a sale of an instrument business and a litigation settlement totaling $2.5 million. As of September 30, 2013, the company had 23.5 million common shares outstanding.

As of September 30, 2013, cash and equivalents totaled $14.6 million. The company utilized $1.8 million in cash for operations in the third quarter of 2013, and expects $2.4 million to $2.9 million in cash outlay during the fourth quarter of 2013 including $0.3 million for the purchase of an IVD platform for research and development.

Q3 2013 Key Developments

• Advanced Vermillion's OVA1 platform migration and Next-Generation product development. The company selected a top-tier IVD instrument for development as well as expanded its agreement with Johns Hopkins' Center for Biomarker Discovery and Translation (CBDT). The company will fund $1.6 million to CBDT through June 2015 for assistance with these programs.

• Continued steps to expand the market for OVA1. Vermillion sent Quest Diagnostics a notice of termination of the Strategic Alliance Agreement on August 23, 2013, with the proviso that Quest Diagnostics can continue to provide OVA1 under the existing financial terms while negotiating in good faith towards an alternative business structure. Quest Diagnostics has disputed the effectiveness of the termination.

• Broadened Vermillion's sales and reimbursement team by adding an additional field representative and two managed care directors. The company now has a total of 10 experienced sales professionals as well as a team of four reimbursement professionals.

• Appointed Dr. Eric Varma to the board of directors, bringing to the company significant financial and commercial experience in the Life Sciences. Dr. Varma is currently a partner at Oracle Investment Management, Vermillion's largest stockholder.

Management Commentary
"We have continued to make progress on the commercialization of OVA1," commented Tom McLain, Vermillion's president and CEO. "In sales regions covered by Vermillion sales reps, test volumes were up more than 15% from the third quarter of 2012. This reflects the positive impact of the SGO statement issued in May, new clinical data and our expanded commercial presence.

"In the fourth quarter, our operational focus continues to be on four key areas: collaborations to develop additional clinical and economic data, treatment guidelines, favorable coverage decisions and expanding access to our OVA1 test. We remain confident that the foundation we are building for our novel diagnostic test will support strong future growth."


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
Vermillion to Present at the 26th Annual ROTH Conference
Company to present at the conference on March 11, 2014.
Thursday, March 06, 2014
Vermillion to Present at Leerink Global Healthcare Conference
Conference to be held at the Waldorf Astoria Hotel from February 12-13, 2014.
Tuesday, February 04, 2014
Vermillion Completes $17.6 Million Warrant Exercise
Proceeds from the warrant exercise will be used to increase test sales for OVA1.
Friday, December 20, 2013
Vermillion Reports Results of 2013 Annual Meeting
Company has approved the reappointment of Peter S. Roddy.
Friday, December 20, 2013
Vermillion Appoints SVP of Sales and Marketing and Chief Commercial Officer
Appointment of Marian E. Sacco as senior vice president of sales and marketing.
Friday, December 20, 2013
Vermillion Board of Directors Elects James T. LaFrance as Chairman
LaFrance has been appointed a member of Company’s board on December 12, 2013.
Monday, December 16, 2013
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 Appoints Dr. Eric Varma to its Board of Directors
Dr. Varma is currently a partner at Oracle Investment Management.
Tuesday, September 17, 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 Appoints President and Chief Executive Officer
Appointment of Thomas McLain effective March 18, 2013.
Thursday, July 04, 2013
Vermillion Appoints Bruce A. Huebner to Chairman of the Board
Shareholders to vote on approval of expanded stock incentive plan at upcoming annual meeting.
Friday, June 28, 2013
Vermillion Announces Closing of Equity Financing
Company to increase the number of directors of the Company from six to eight persons.
Thursday, May 16, 2013
Scientific News
Point of Care Diagnostics - A Cautious Revolution
Advances in molecular biology, coupled with the miniaturization and improved sensitivity of assays and devices in general, have enabled a new wave of point-of-care (POC) or “bedside” diagnostics.
Mass Spec Technology Drives Innovation Across the Biopharma Workflow
With greater resolving power, analytical speed, and accuracy, new mass spectrometry technology and techniques are infiltrating the biopharmaceuticals workflow.
One Step Closer to Precision Medicine for Chronic Lung Disease Sufferers
A study led by University of North Carolina at Chapel Hill, and National Jewish Health, has provided evidence of links between SNPs and known COPD blood protein biomarkers.
Researchers Find a Gap in the Brain’s Firewall Against Parkinson’s Disease
Researchers at NIH have found mouse study that identified a key player in the progression of the disorder.
Fat Cells That Amplify Nerve Signals in Response to Cold Also Affect Blood Sugar Metabolism
Researchers at UTSW have found that the protein connexin 43 forms cell-to-cell communication channels on the surface of emerging beige fat cells that amplify the signals from those few nerve fibers.
Drug to Treat Alcohol Use Disorder Shows Promise Among Drinkers With High Stress
The findings suggest that potential future studies with drugs targeting vasopressin blockade should focus on populations of people with AUD who also report high levels of stress.
C Dots Show Powerful Tumor Killing Effect
Nanoparticles known as Cornell dots, or C dots, have shown great promise as a therapeutic tool in the detection and treatment of cancer.
Faecal Bacteria Linked to Body Fat
Researchers at King’s College London have found a new link between the diversity of bacteria in human poo – known as the human faecal microbiome - and levels of abdominal body fat.
How Baby’s Genes Influence Birth Weight And Later Life Disease
The large-scale study could help to target new ways of preventing and treating these diseases.
Genes Underlying Dogs’ Social Ability Revealed
The social ability of dogs is affected by genes that also seem to influence human behaviour, according to a new study from Linköping University in Sweden.
Scroll Up
Scroll Down
Skyscraper Banner

Skyscraper Banner
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!