Oxford Immunotec reports third quarter rise in revenues

Oxford Immunotec

Milton Park-headquartered Oxford Immunotec Global PLC a global, high-growth diagnostics company has announced third quarter 2018 financial results.

“We are very pleased with the continued strong growth in our TB business, as well as the company’s continued progress on profitability metrics,” said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. “The Quest transaction is a transformative event for the company that well positions us for greater commercial and financial success”.

Oxford Immunotec is listed on the New York-based NASDAQ. Revenue for the third quarter of 2018 was $16.1 million, representing a sever per cent increase from third quarter 2017 revenue of $15.0 million.

2018 third quarter product revenue was $15.1 million, representing a 12 per cent increase from product revenue of $13.4 million in the third quarter of 2017. Service revenue for the third quarter of 2018 was $1.0 million, down 40 per cent from 2017 third quarter service revenue of $1.6 million. The decrease in service revenue was driven by an expected decline in blood donor screening revenue.

United States revenue was $2.9 million in the third quarter of 2018, representing a 15 per cent decline from revenue of $3.4 million in the prior year period. Growth in its core tuberculosis business was offset by an expected decline in blood donor screening revenue.

Europe & ROW revenue was $2.3 million in the third quarter of 2018, representing a 3% per cent increase compared to the third quarter of 2017.

Asia revenue was $10.9 million in the third quarter of 2018 – an increase of 16 per cent compared to 2017 third quarter revenue of $9.4 million.

Gross profit for the third quarter of 2018 was $11.5 million, an increase of approximately $1.7 million from gross profit of $9.8 million in the same period of 2017.

Operating expenses were $16.5 million in the third quarter of 2018, a decrease of approximately $11.1 million compared to $27.6 million in the third quarter of 2017. Excluding one-time items, operating expenses for the third quarter of 2018 decreased approximately $900k compared to the third quarter of 2017.

Net loss for the third quarter of 2018 were lower – at  $3.5 million, compared to $16.8 million,  in the third quarter of 2017.

On November 6, the USA-based Quest Diagnostics completed its previously announced acquisition of Oxford Immunotec’s US laboratory services business. The T-SPOT.TB tuberculosis and the Accutix tick-borne disease testing services are now part of Quest Diagnostics’ portfolio of innovative infectious disease testing services. As part of the transaction, Oxford Immunotec will sell T-SPOT.TB test kits and related accessories to Quest Diagnostics under the terms of a long-term supply agreement. In addition, the parties have entered into a strategic collaboration agreement to drive continued growth of T-SPOT.TB testing in the U.S.