Not wanting to break a winning streak, Clarient delivered its 16th consecutive quarter of quarterly revenue growth. The company posted revenues of $16.9 million in its most recent quarter, a 71% increase over the same period last year.
Based on performance in the first half of 2008, Clarient raised fiscal year 2008 revenue guidance to $62 – $66 million, from guidance of $56 – $60 million.
According to the company, the increase in revenues was driven by higher testing volume, a favorable service mix and higher Medicare reimbursement rates. Clarient continues to acquire and retain customers.
Testing volumes for the second quarter of 2008 increased by 60% year-over-year, largely a result of breast prognostics (Clarient is on track to launch its Insight Dx Breast Cancer Profile in the second half of 2008). Solid tumor testing volume increased 30%, leukemia/lymphoma volumes increased 86%, and PCR/molecular testing increased 98%.
Clarient services include: diagnosing solid tumors, cancer sub-typing, classifying patients into prognostic categories (i.e. low, medium and high risk groups), identifying which drugs or therapy paths are best for patients, monitoring patient on therapy, searching for residual disease during and post therapy, and detecting relapse or cancer transformation.
Volume growth and higher reimbursement drove gross margins of 59 percent, a huge improvement over the 44 percent gross margins reported in the second quarter of 2007. Clarient also pointed to increased employee productivity and lower fixed costs.
Q2 2008 gross profit was $10.0 million, an increase of 129% compared with $4.4 million in Q2 2007.
This interview with Ron Andrews was filmed in January 2008 at the OneMedPlace Finance Forum.