CareDx Shares Trade Up 15% After Announcing 57% YoY Increase in Q3 Revenue
Source: Streetwise Reports
October 9, 2020 (Investorideas.com Newswire) CareDx shares established a new 52-week high after the company reported that preliminary revenue in Q3/20 increased 57% year-over-year to $53.0 million.
Precision medicine company CareDx Inc (CDNA:NASD), which is engaged in creating, discovering and commercializing high-value healthcare solutions for transplant patients and caregivers, yesterday announced "preliminary unaudited revenue for the three months ended September 30, 2020."
CareDx reported that for Q3/20 it expects revenue will come in at approximately $53.0 million. The company advised that this preliminary Q3/20 revenue estimate represents an increase of 57% compared with $33.8 million it achieved in Q3/19.
The firm provided a further breakdown of the revenue estimates and stated that testing revenue is expected to be approximately $45.2 million in Q3/20, compared to $28.2 million in Q3/19.
The company reported that product revenue in Q3/20 is expected to be $5.4 million, versus $4.2 million in Q2/19 and that digital & other revenue in Q3/20 is estimated to be $2.4 million, compared to $1.4 million in the same corresponding period in 2019.
The company indicated that it provided a total of about 21,800 AlloSure® and AlloMap patient results in Q3/20. CareDX explains on its website that AlloSure is a non-invasive test that assesses organ health, which enables better management of kidney transplant recipients and AlloMap Heart is a non-invasive gene expression peripheral blood profile test in heart transplant recipients that is used by more than 90% of transplant centers in the U.S.
The company's Chairman and CEO Peter Maag commented, "I am proud of the CareDx team for rising above the continued challenges of the pandemic and partnering with transplant centers to support transplant patients throughout these uncertain times...Our strong third quarter performance was driven by this dedication and our commitment to lead in advancing transplantation, underscored by our surveillance solutions, AlloSure and AlloMap."
CareDx's President and Chief Business Officer Reg Seeto added, "We continue to invest in growth initiatives to position CareDx as the leader in transplantation and expand our pipeline, including most recently with patient care management and digital solutions...As a result of our strategic investments, we have been able to adapt more efficiently to meet the needs of individual transplant centers during this pandemic and to attract incredible talent to join the CareDx team."
CareDx is a precision medicine solutions company based in South San Francisco, Calif. The company focuses its efforts on discovering, developing and marketing high-value healthcare solutions primarily for heart and kidney transplant patients and their caregivers. The firm provides products, testing services and digital healthcare solutions to improve outcomes for patients along the pre- and post-transplant journey.
CareDx started the day with a market capitalization of around $2.1 billion with approximately 48.96 million shares outstanding and a short interest of about 11.5%. CDNA shares opened 14% higher today at $50.00 (+$6.14, +14.00%) over yesterday's $43.86 closing price and reached a new 52-week high price this morning of $52.50. The stock has traded today between $49.25 and $52.50 per share and closed at $50.53 (+$6.67, +15.21%).
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