Cancer Genetics, Inc. Announces Strong Fourth Quarter and Full-Year 2015 Results and Provides 2016 Business Update

  • Full-Year 2015 revenues up 77% year-over-year to $18 Million
  • Fourth Quarter revenues up 36% year-over-year to $5.5 Million
  • Closed 2015 with strong cash balance of $19.5 Million
  • Conference call begins at 5:00 p.m. Eastern time today

RUTHERFORD, N.J., March 10, 2016 (GLOBE NEWSWIRE) -- Cancer Genetics, Inc. (Nasdaq:CGIX), an emerging leader in enabling precision medicine for oncology diagnostics, announced financial and operating results for the fourth quarter and full-year-ended December 31, 2015 and provided an update on the business progress for 2016.

“Our business continues to scale as we integrate the acquisition of Response Genetics, focus on expanding our biopharma partnerships, and enhance our capabilities to provide both comprehensive immuno-oncology and genomic testing for oncology,” said Panna Sharma, CEO & President of Cancer Genetics, Inc. “In addition, CGI’s presence is growing both clinically and among biopharma companies - our teams are currently working with 8 of the top 10 pharma companies, and we have agreements with 24 payers, managed care providers, and insurance companies that cover nearly 180 million lives.”

Highlights for the quarter and year included:

  • Fourth quarter revenues were $5.5 million, up 36% from $4.0 million in the fourth quarter of 2014, with $3.0 million from BioPharma Services, $2.4 million from Clinical Services, and $0.2 million from Discovery Services
  • Full-Year revenue for 2015 was $18.0 million, up 77% from $10.2 million for the 12-months ended December 31, 2014
    • BioPharma Services revenue, was $11.6 million, an increase of 106% from $5.6 million over 2014
    • Clinical Services revenue was $5.7 million compared to $4.4 million during 2014
    • Discovery Services generated $0.8 million in revenue
    • Gross profit margins improved to 22%, or $3.9 million, as compared to 17%, or $1.7 million, in the 12-months ended December 31, 2014
    • Cash & cash equivalents at December 31, 2015, were $19.5 million, as compared to $25.6 million at December 31, 2014

“As we look ahead in 2016, we see multiple growth drivers impacting our business.  The increasing number of oncology clinical trials utilizing both genomic and immune-based markers is expected to continue to drive strong demand for our products and services.  In addition, our ability to offer a comprehensive oncology-focused menu of tests, positions us as an ideal partner for healthcare systems,” continued Mr. Sharma.  “We will also be launching a number of innovative tests in 2016, including a multiple myeloma panel with the Mayo Clinic, a NGS-based lung cancer panel and a NGS-based panel for hereditary cancers. We have established a global infrastructure, collaborative relationships with academic and research centers, and a strong portfolio of proprietary genomic tests and capabilities.”


  • Awarded largest clinical trial in company history to provide comprehensive testing for global, multi-year Chronic Lymphocytic Leukemia trial
  • Closed $12 million public offering to strengthen balance sheet
  • Acquisition of the operations & assets of Response Genetics, Inc. (RGI) included the FDA-cleared Tissue-Of-Origin test. The RGI acquisition is expected to add $10 million in annual revenue during 2016
  • Launched a Next-Generation Sequencing (NGS)-based panel targeting the five most common solid tumors for the East Indian and Asian markets
  • Launched Focus::Myeloid™, a comprehensive NGS-based genomic panel for the improved diagnosis, prognosis, and clinical management of myeloid cancer patients
  • Entered into a strategic alliance with the Laboratory Services group of ICON plc, the global CRO, further expanding CGI’s global reach
  • Launched comprehensive immuno-oncology testing portfolio for both solid tumors and blood based cancers
  • Received $1.2 million in non-dilutive funding through the New Jersey Technology Business Tax Certificate Transfer (NOL) Program
  • Presented results from collaborative studies with partners including CGI’s joint venture with Mayo Clinic, Oncospire Genomics, in addition to Memorial Sloane Kettering, Beth Israel Deaconess, Keck School of Medicine at USC, and Weill Cornell Medical College
Conference Call & Webcast  
Thursday, March 10th @ 5:00pm Eastern Time 
Domestic: 888-438-5525
International: 888-438-5525
Conference ID: 9859224
Replays – Available through March 24, 2016 
Domestic: 877-870-5176
International: 858-384-5517
Conference ID: 9859224

About Cancer Genetics

Cancer Genetics Inc. is a leader in enabling precision medicine in oncology from bench to bedside through the use of oncology biomarkers and molecular testing. CGI is developing a global footprint with locations in the US, India and China. We have established strong clinical research collaborations with major cancer centers such as Memorial Sloan Kettering, The Cleveland Clinic, Mayo Clinic, Keck School of Medicine at USC and the National Cancer Institute.

The Company offers a comprehensive range of laboratory services that provide critical genomic and biomarker information. Its state-of-the-art reference labs are CLIA-certified and CAP-accredited in the US and have licensure from several states including New York State.

For more information, please visit or follow CGI at:              


Twitter: @Cancer_Genetics


Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development and potential opportunities for Cancer Genetics, Inc. products and services, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements.

Any statements that are not historical fact (including, but not limited to, statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, risks of cancellation of customer contracts or discontinuance of trials, risks that anticipated benefits from acquisitions will not be realized, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, maintenance of intellectual property rights and other risks discussed in the Cancer Genetics, Inc. Forms 10-K for the year ended December 31, 2014 and 10-Q for the quarter ended September 30, 2015 along with other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Cancer Genetics, Inc. disclaims any obligation to update these forward-looking statements.

Consolidated Balance Sheets
(in thousands, except par value)
  December 31,
  2015 2014
Cash and cash equivalents $19,459  $25,554 
Accounts receivable, net of allowance for doubtful accounts of 2015 $664; 2014 $251 6,621  5,028 
Other current assets 2,118  1,173 
Total current assets 28,198  31,755 
FIXED ASSETS, net of accumulated depreciation 6,069  4,310 
Restricted cash 300  6,300 
Patents and other intangible assets, net of accumulated amortization 1,727  503 
Investment in joint venture 341  1,048 
Goodwill 12,029  3,187 
Other 220  2 
Total other assets 14,617  11,040 
Total Assets $48,884  $47,105 
Accounts payable and accrued expenses $7,579  $3,763 
Obligations under capital leases, current portion 122  59 
Deferred revenue 831  544 
Bank term note, current portion 1,333   
Total current liabilities 9,865  4,366 
Obligations under capital leases 276  300 
Deferred rent payable and other 315  348 
Line of credit   6,000 
Warrant liability 17  52 
Acquisition note payable   560 
Deferred revenue, long-term 752  925 
Bank term note 4,642   
Total Liabilities 15,867  12,551 
Preferred stock, authorized 9,764 shares $0.0001 par value, none issued    
Common stock, authorized 100,000 shares, $0.0001 par value, 13,652 and 9,821 shares issued and outstanding as of December 31, 2015 and 2014, respectively 1  1 
Additional paid-in capital 131,167  112,520 
Accumulated deficit (98,151) (77,967)
Total Stockholders’ Equity 33,017  34,554 
Total Liabilities and Stockholders’ Equity $48,884  $47,105 

Consolidated Statements of Operations
(in thousands, except per share amounts)
 Three Months Ended December 31 Twelve Months Ended December 31
 2015 2014 2015 2014
Revenue$5,484  $4,035  $18,040  $10,199 
Cost of revenues4,756  3,094  14,098  8,453 
Gross profit728  941  3,942  1,746 
Operating expenses:       
Research and development1,148  1,529  5,483  4,622 
General and administrative5,031  4,138  14,567  12,369 
Sales and marketing1,726  1,226  5,269  3,964 
Total operating expenses7,905  6,893  25,319  20,955 
Loss from operations(7,177) (5,952) (21,377) (19,209)
Other income (expense):       
Interest expense(117) (65) (344) (473)
Interest income19  17  49  74 
Change in fair value of warrant liability17  93  35  417 
Change in fair value of acquisition note payable360  198  269  198 
Total other income (expense)279  243  9  216 
Loss before income taxes(6,898) (5,709) (21,368) (18,993)
Income tax (benefit)(1,184) (536) (1,184) (2,350)
Net (loss)$(5,714) $(5,173) $(20,184) $(16,643)
Basic net (loss) per share$(0.47) $(0.54) $(1.96) $(1.76)
Diluted net (loss) per share$(0.48) $(0.55) $(1.96) $(1.80)
Basic weighted average shares outstanding12,048  9,642  10,298  9,449 
Diluted weighted average shares outstanding12,048  9,642  10,299  9,462 

Consolidated Statements of Cash Flows
(in thousands)
  Years Ended December 31,
  2015 2014
Net loss $(20,184) $(16,643)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 1,503  810 
Amortization 159  28 
Provision for bad debts 413  215 
Stock-based compensation 2,834  3,835 
Change in fair value of acquisition note payable 269  (198)
Change in fair value of Gentris contingent consideration (207)  
Change in fair value of warrant liability (35) (417)
Amortization of loan guarantee, financing fees and debt issuance costs 8  311 
Loss in equity-method investment 707  940 
Change in working capital components:    
Accounts receivable (1,662) (1,657)
Other current assets (384) (199)
Other non-current assets (101)  
Accounts payable, accrued expenses and deferred revenue 3,114  675 
Deferred rent and other (33) (38)
          Net cash (used in) operating activities (13,599) (12,338)
Purchase of fixed assets (1,008) (1,374)
(Increase) decrease in restricted cash 6,000  (6,000)
Patent costs (137) (130)
Investment in joint venture   (1,000)
Cash used in acquisition of Gentris, net of cash received   (3,181)
Cash from acquisition of BioServe   312 
Cash used in acquisition of Response Genetics (7,495)  
          Net cash (used in) investing activities (2,640) (11,373)
Principal payments on capital lease obligations (83) (44)
Payment of equity issuance costs (117)  
Proceeds from public offerings of common stock, net of offering costs 10,353   
Proceeds from warrant exercises 1  178 
Proceeds from option exercises 23  79 
Payment of debt issuance costs (33)  
Principal payments on notes payable   (408)
          Net cash provided by (used in) financing activities 10,144  (195)
          Net increase (decrease) in cash and cash equivalents (6,095) (23,906)
Beginning 25,554  49,460 
Ending $19,459  $25,554 
Cash paid for interest $240  $128 
Fixed assets acquired through capital lease arrangements $  $42 
Value of shares issued as partial consideration to purchase Gentris and BioServe   1,516 
Value of shares issued as partial consideration to purchase Response Genetics 5,436   
Cashless exercise of derivative warrants   125 
Net tangible assets acquired via acquisition 2,843  1,255 


CONTACT: Contact:
Media Contact:
Cancer Genetics, Inc.
Marie-Agnes Patrone-Michellod, PhD.
Tel: 201.528.9200

Investor Contact:
LifeSci Advisors, LLC
Hans Vitzthum