Checking the True Picture for OncoCyte Corporation (NYSE: OCX)

On 24 Jan 2020, OncoCyte Corporation (NYSE: OCX) changed -4.78% to recent value of $2.79. The stock transacted 264898 shares during most recent day however it has an average volume of 293.2K shares. It spotted trading -59.68% off 52-week high price. On the other end, the stock has been noted 86.00% away from the low price over the last 52-weeks.

OncoCyte Corporation (OCX) recently stated financial and operating results for the third quarter ended September 30, 2019 and provided a corporate update.

“My first quarter at the helm of OncoCyte was marked with important progress in establishing OncoCyte as a leader in early-stage lung cancer molecular diagnostics,” stated Ron Andrews, Chief Executive Officer of OncoCyte. “We are incredibly excited with the addition of the Razor Genomics’ treatment stratification test to our expanding portfolio and are efficiently ramping up commercialization efforts and market preparation for a first quarter 2020 launch. We believe we have the potential to shift the treatment paradigm for early-stage lung cancer, and given the recent proposed positive coverage decision from CMS, we are focused on rapidly advancing to broad commercial availability so physicians and their patients can receive actionable answers that may enable importantly improved outcomes and survival.”

Third Quarter 2019 Financial Highlights

At September 30, 2019, OncoCyte had cash, cash equivalents, and marketable securities of $19.9M as contrast to $8.5M at December 31, 2018.  In September 2019, OncoCyte paid $11.2M to acquire a 25% interest in Razor Genomics and all the commercialization rights to the Razor treatment stratification test.

On November 13, 2019, OncoCyte strengthened its balance sheet by $8.6M and issued 5,058,824 shares, at market, to planned, long term investors led by Pura Vida Investments, LLC, a fundamentally driven, healthcare focused registered investment advisor.

In October, OncoCyte refinanced its existing loan for an additional loan facility of up to $5M, at market rate and small warrant coverage, of which $3M was made accessible immediately and the remaining $2M to become accessible upon OncoCyte achieving certain milestones agreed to with the bank.

For the third quarter ended September 30, 2019, OncoCyte incurred a net loss of $5.2M, or $(0.10) per share, as contrast to $3.0M, or $(0.07) per share, for the three months ended September 30, 2018.

Operating expenses, as stated, for the three months ended September 30, 2019 were $5.3M, a raise of $2.2M as contrast to the same period in 2018. Operating expenses, as adjusted, for the three months ended September 30, 2019, were $4.4M, a raise of $1.9M as contrast to the same period in 2018.

The reconciliation between operating expenses determined in accordance with accounting principles generally accepted in United States (GAAP) and operating expenses, as adjusted, a non-GAAP measure, is provided in the financial tables included at the end of this press release.

Research and development expenses for the quarter ended September 30, 2019 were $1.6M as contrast to $1.5M for the same period in 2018, remained relatively unchanged.

General and administrative expenses for the three months ended September 30, 2019 were $3.0M, as contrast to $1.3M for the same period in 2018, a raise of $1.7M. This increase is primarily attributable to investment banking-related expenses; personnel and related expenses, including management transition costs; legal, recruiting, accounting, audit and tax services expenses; stock-based compensation expense Because of additional equity grants, including new hires; financial advisory expenses; and expenses of meetings, conferences and seminars. As OncoCyte transitions off of Lineage Cell Therapeutics (formerly BioTime) Shared Services and builds its own administrative, human resources, legal, finance and accounting functions and teams, OncoCyte expects the expenses in this category will increase.

According to the most recent quarter its current ratio was 6.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of 8.37% from the mean of 20 days, 31.12% from mean of 50 days SMA and performed 7.48% from mean of 200 days price. Company’s performance for the week was -6.38%, 30.99% for month and YTD performance remained 24.00%.


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