Shares of Verici Dx have taken a hit after the company announced that its full-year revenue from its lead product, Tutivia, which is used in the detection of kidney-transplant rejection, is anticipated to be lower than expected.
As of 0803 GMT, shares were down 19% at 7.25 pence, experiencing a low of 6.0 pence earlier in the trading session.
The company, known for developing clinical diagnostics for organ transplants, explains that the rollout of Tutivia, launched in January, faced temporary confusions among clinical centers due to their review of announcements made by the U.S. national health insurance program, Centers for Medicare & Medicaid Services. Consequently, there was a slowdown in the enrollment of transplant centers participating in the early adopter program during the second and third quarters. However, this issue has now been resolved, with the number of centers adopting the test doubling in recent times.
Verici Dx’s Chief Executive, Sara Barrington, acknowledged the frustration caused by the timing effects on early adoption but assured investors that cost savings have been made in other areas. Additionally, the company remains focused on research collaborations to establish a strong foundation for future growth. Barrington also mentioned that the impact of lower Tutivia revenue will be compensated by increased research-related revenue.
Regarding its financial position, Verici Dx expects its cash runway to remain unchanged until mid-2024 based on revenue and effective cost containment. As of June 30, the company had $5.3 million in cash.
In terms of performance, Verici Dx’s pretax loss for the first half of the year slightly narrowed to $5.3 million from $5.5 million during the same period in the previous year. However, revenue from Tutivia’s commercial launch amounted to $19,000 compared to no revenue in the previous year.
Looking ahead, Verici Dx is on track to commercially launch its Clarava pre-transplant prognosis test for kidney transplants in the United States by the end of 2023.