Nanosphere reports record 1Q revenues

NORTHBROOK - Medical research company Nanosphere Inc. reported record revenues for the first quarter of 2016, driven by U.S. demand for the company's targeted molecular diagnostics.

Revenues for the first quarter of 2016 were $6.6 million, compared to $4.6 million for the first quarter of 2015. The 43 percent year-over-year revenue growth was driven predominantly by U.S. based microbiology laboratories continued adoption of Nanosphere's expanding infectious disease menu evidenced by a 55 percent growth rate in test consumables in the first quarter of 2016 as compared to the prior year period, the company reported.

Gross margins for the first quarter of 2016 were 46.3 percent, and remained flat when compared to the prior year period due to depreciation expense of $250,000 in 2016 related to evaluation equipment held at customer locations.

Research and development expenses in the first quarter of 2016 were $3.7 million, as compared to $3.6 million for the same period in 2015. Sales, general and administrative expenses in the first quarter of 2016 decreased to $4.9 million from $5.2 million during the same period in 2015. The reduction in expenses was due to the repeal of the medical device tax which reduced costs by $0.1 million, a decrease in equity compensation expense related to the reduction in fair value of options granted in recent years compared to prior years of $0.1 million, and a decrease in bad debt expense of $0.1 million.

Nanosphere's develops diagnostics that result in earlier disease detection, optimal patient treatment and improved health care economics.