Full Press Release Details
Vermillion Reports Second Quarter 2019 Financial Results
Conference Call scheduled for today, August 8th at 4:30 p.m. ET
AUSTIN, Texas August 8, 2019 Vermillion, Inc. (Nasdaq: VRML), a bio-analytical based women's health company focused on gynecologic disease, today reported its financial results for the second quarter ended June 30, 2019.
We are very pleased by the continued positive momentum for OVA1Plus. The growth in product volume and revenue are a reflection of their efficacy compared to the current standard of care in ovarian cancer risk management, stated Valerie Palmieri, President and CEO of Vermillion. We continue to focus on maximizing commercialization efforts and payer penetration to become the one and only choice for pelvic mass risk management.
Recent Corporate Highlights
Year over Year Results - Second Quarter 2019 versus Second Quarter 2018:
Year over Year Results First Half 2019 versus First Half 2018
New Health Plan Contracts
Expanded preferred coverage of OVA1 ovarian cancer risk assessment test with the addition of two new health plan in network contract agreements. BlueCross BlueShield of Texas and Blue Cross Blue Shield of Arizona will now provide in network coverage to nearly 6 million additional lives.
Clinical Study Publications
June 2019- Announced the acceptance and recent publication of the first of several studies demonstrating that OVA1 (Multivariate Index Assay,MIA) improves ovarian cancer detection in African American women.
Biomarkers in Cancer Publication - A study of 1029 patients; 853 Caucasian with 250 malignancies, and 153 African American with 24 malignancies. The study demonstrated that OVA1 demonstrated a sensitivity of 79.1%, compared to 54.5% with HE4 + CA125 (ROMA). Demonstrating a 45% improvement in sensitivity.
July 2019- Advances in Therapy Publication - A study of 993 patients, comparing Overa , Vermillion's 2nd Generation multivariate index assay, vs ROMA vs CA125. Overa had the highest performance in early stage ovarian cancer risk detection with 90.5 % sensitivity compared to ROMA at 76.2% sensitivity and CA125 at 63.1% sensitivity, based on ACOG guidance cutoff of 200 U/ml.
July 2019- Journal of Surgical Oncology- Accepted for publication. A study of 878 patients comparing current standard of care imaging tools (ultrasound and CT scan) compared to Overa and its ability to vastly improve the ovarian cancer risk assessment care pathway, when used in clinical workup for adnexal masses.
July 2019- Abstract acceptance of our poster, Ovarian Malignancy Risk Stratification Using a Third-Generation Multivariate Index Assay, at the European Society of Gynecologic Oncology to be presented in November 2019.
Conference Call and Webcast
Vermillion's President and CEO, Valerie Palmieri, will host a call today at 4:30 p.m. Eastern Daylight Time to discuss results followed by a question and answer period.
Thursday, August 8th @ 4:30pm Eastern Time
855-327-6837 Domestic Investors
631-891-4304 - International Investors Dial
10007441 - Conference ID
About Vermillion, Inc.
Vermillion, Inc. is dedicated to the discovery, development and commercialization of novel high-value diagnostic and bio-analytical solutions that help physicians diagnose, treat and improve gynecologic health outcomes for women. Vermillion, along with its prestigious scientific collaborators, discovers, develops, and delivers innovative diagnostic and technology tools that help women with serious diseases. The company's initial in vitro diagnostic test, OVA1 (MIA), was the first FDA-cleared, protein-based In Vitro Diagnostic Multivariate Index Assay, and represented a new class of software-based liquid biopsy in vitro diagnostics. In March 2016, Vermillion received FDA clearance for Overa , a Multivariate Index Assay 2nd Generation (MIA2G) test with significantly improved specificity and ease of use. For additional information, including published clinical trials, visit www.vermillion.com.
Visit our website for more information about our products at www.vermillion.com.
Forward-Looking Statements
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995 including statements regarding expected revenue, test volumes and gross profits. These statements involve a number of risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. Words such as may, expects, intends, anticipates, believes, estimates, plans, seeks, could, should, continue, will, potential, projects and similar expressions are intended to identify forward-looking statements. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including the risks and uncertainties inherent in Vermillion's business, including those
described in the section entitled Risk Factors in Vermillion's Annual Report on Form 10-K for the year ended December 31, 2018. The events and circumstances reflected in Vermillion's forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Vermillion expressly disclaims any obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this press release, except as required by law.
Investor Relations Contact:
LifeSci Advisors, LLC
Consolidated Balance Sheets
(Amounts in Thousands, Except Share and Par Value Amounts)
| June 30, | December 31, | ||||
| 2019 | 2018 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 16,179 | $ | 9,360 | |
| Accounts receivable, net | 800 | 786 | |||
| Prepaid expenses and other current assets | 496 | 550 | |||
| Inventories | 90 | 92 | |||
| Total current assets | 17,565 | 10,788 | |||
| Property and equipment, net | 472 | 608 | |||
| Other assets | 115 | 12 | |||
| Total assets | $ | 18,152 | $ | 11,408 | |
| Liabilities and Stockholders' Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 811 | $ | 950 | |
| Accrued liabilities | 2,473 | 1,825 | |||
| Short-term debt | 191 | 189 | |||
| Other current liabilities | 86 | - | |||
| Total current liabilities | 3,561 | 2,964 | |||
| Non-current liabilities: | |||||
| Long-term debt | 1,196 | 1,292 | |||
| Other non-current liabilities | 29 | - | |||
| Total liabilities | 4,786 | 4,256 | |||
| Commitments and contingencies | |||||
| Stockholders' equity: | |||||
| Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding at June 30, 2019 and December 31, 2018 | - | - | |||
| Common stock, par value $0.001 per share, 150,000,000 shares authorized at June 30, 2019 and December 31, 2018; 94,378,200 and 75,501,394 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 94 | 75 | |||
| Additional paid-in capital | 428,226 | 414,001 | |||
| Accumulated deficit | (414,954) | (406,924) | |||
| Total stockholders' equity | 13,366 | 7,152 | |||
| Total liabilities and stockholders' equity | $ | 18,152 | $ | 11,408 |
Consolidated Statements of Operations
(Amounts in Thousands, Except Share and Per Share Amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||
| Revenue: | |||||||||||
| Product | $ | 1,100 | $ | 627 | $ | 1,879 | $ | 1,240 | |||
| Service | 42 | 81 | 66 | 117 | |||||||
| Total revenue | 1,142 | 708 | 1,945 | 1,357 | |||||||
| Cost of revenue: (1) | |||||||||||
| Product | 698 | 528 | 1,214 | 1,061 | |||||||
| Service | 210 | 280 | 388 | 550 | |||||||
| Total cost of revenue | 908 | 808 | 1,602 | 1,611 | |||||||
| Gross profit (loss) | 234 | (100) | 343 | (254) | |||||||
| Operating expenses: | |||||||||||
| Research and development (2) | 225 | 154 | 434 | 296 | |||||||
| Sales and marketing (3) | 2,780 | 1,478 | 5,144 | 2,703 | |||||||
| General and administrative (4) | 1,534 | 1,299 | 2,789 | 2,613 | |||||||
| Total operating expenses | 4,539 | 2,931 | 8,367 | 5,612 | |||||||
| Loss from operations | (4,305) | (3,031) | (8,024) | (5,866) | |||||||
| Interest income (expense), net | (2) | (7) | 5 | (19) | |||||||
| Other income (expense), net | (7) | (11) | (11) | (14) | |||||||
| Net loss | $ | (4,314) | $ | (3,049) | $ | (8,030) | $ | (5,899) | |||
| Net loss per share - basic and diluted | $ | (0.06) | $ | (0.04) | $ | (0.11) | $ | (0.09) | |||
| Weighted average common shares used to compute basic and diluted net loss per common share | 76,205,894 | 69,353,622 | 75,860,411 | 64,721,128 | |||||||
| Non-cash stock-based compensation expense included in cost of revenue and operating expenses: | |||||||||||
| (1) Cost of revenue | $ | 21 | $ | 28 | $ | 37 | $ | 58 | |||
| (2) Research and development | 2 | 1 | 4 | 2 | |||||||
| (3) Sales and marketing | 39 | 28 | 61 | 71 | |||||||
| (4) General and administrative | 351 | 304 | 495 | 412 |