BIOC Stock: Biocept Climbs On Financial Results

Biocept Inc (NASDAQ: BIOC) is climbing in the market this morning, and for good reason. The company released its financial results, showing dramatic gains in both revenue and earnings. Here’s what’s going on:

Biocept Announces Q4 Financial Results

In a press release issued early this morning, Biocept announced its financial results for the fourth quarter, with those results being overwhelmingly positive. Here’s what we saw:

  • Earnings. In terms of earnings per share, the company produced an EPS of $0.14. That’s an incredible beat when it comes to analyst expectations of a loss of $0.27 per share. Moreover, earnings climbed a massive 179% on a year over year basis. 
  • Revenue. Revenue also proved to be impressive. During the quarter, revenues rose to $18.511 million, which represents a year over year increase in the amount of 937.61%. Moreover, the figure didn’t just show dramatic growth, it beat analyst expectations of just $12.32 million. 

In the release, Biocept explained that the primary driver of the dramatic growth in earnings and revenue was ultimately the result of gains in COVID-19 testing. 

Management Commentary

In a statement, Michael Nall, President and CEO at Biocept, had the following to offer:

I’m exceptionally proud of the Biocept team for their enthusiasm and dedication in supporting the COVID-19 testing needs of our community while advancing our oncology business for a strong post-pandemic future,” said Michael Nall, President and CEO of Biocept. “Our COVID-19 testing has provided valuable information to our clients, which has helped contain viral spread. We received about 140,000 samples for COVID-19 testing during the fourth quarter and, even with the relocation of our corporate headquarters and CLIA laboratory, our team provided the vast majority of COVID-19 test results to health providers within 48 hours of receiving the sample.

Our financial results for the fourth quarter reflect our team’s success with revenues reaching $18.5 million, resulting in our first-ever profitable quarter,” he added. “Our ability to generate higher revenues in recent quarters due to COVID-19 testing significantly reduced our cash burn in 2020, while we continued to provide excellent service for our oncology and COVID-19 customers.

The focus of our oncology business going forward is clearly on our neuro-oncology strategy and cerebrospinal fluid (CSF) assay,” he added. “This assay uniquely addresses a high unmet clinical need by identifying metastatic progression of cancer to the central nervous system and brain. Approximately 10% to 30% of patients diagnosed with cancer, depending on tumor type, will ultimately experience spread of their disease to the central nervous system. Pilot studies have shown our CSF assay to be significantly more sensitive than conventional CSF cytology, the current standard of care, in detecting lung and breast cancer that has metastasized to the brain or central nervous system. Our CSF assay has the added advantages of identifying actionable molecular targets that provide physicians with valuable information in making treatment decisions, as well as providing quantitative information for monitoring treatment response and disease progression.

Initial acceptance by neuro-oncology early-adopters has been highly encouraging as physicians from nearly two dozen leading academic institutions have ordered our assay with many becoming repeat users. Given the advantages of this offering, we have engaged a group of neuro-oncology thought-leaders from leading institutions to work with us in developing a strategy to establish our assay as the standard of care in diagnosing cancer with central nervous system involvement under National Comprehensive Cancer Network (NCCN) guidelines. Key among these actions is gathering clinical data in support of our testing. Later this year, we expect to start our Four C registry trial, which is designed to provide clinical validation of the performance of our assay against CSF cytology in predicting clinical outcomes in patients with suspected brain and central nervous system metastases.

Biocept Beyond COVID-19

It’s true, COVID-19 testing drove dramatic gains in the revenue and profitability at Biocept. But what happens when COVID-19 is gone?

As I write this article, I have the news playing in the background, and I just heard that President Biden said every adult in the United States will have access to a COVID-19 vaccine by no later than April 19, 2021. 

That’s right around the corner. 

Once the masses get the jab, won’t the virus be a problem of the past? Won’t that lead to declines in Biocept revenue?

Possibly, but the opportunity is still alive. 

Keep in mind, Biocept’s claim to fame prior to the pandemic was the fact that it is able to provide liquid biopsies with a compelling ability to detect cancer. That means that invasive procedures aren’t necessary to diagnose the cancers covered by the company’s testing. 

All in all, that’s incredible news, and will likely lead to a continuation of growth in Biocept stock for the long haul. 

The Bottom Line

The bottom line here is simple. Biocept is firing on all cylinders, and due to the hard work the company, it’s management team, and its employees have put in, the company is performing overwhelmingly well, as can be seen from its earnings report. All told, BIOC stock is one for the books. 

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