Biocept reports profitability for the first half on back of increased COVID-19 testing

Biocept Inc (NASDAQ:BIOC) reported positive net income for the first half of 2021 as revenues rose due to the increased use of the firm's COVID-19 RT-PCR  tests, notably in the first quarter. In the six months to June 30 this year, the diagnostics group posted a net income of  $772,000 compared to a net loss of $14.8 million in the same period of 2020 on revenue of $29.8 million, a large increase from the revenue figure of $2.4 million seen in the first half of 2020. Meanwhile, in the second quarter (to end-June), revenue was $12 million, up from $917,000 in 2Q, 2020, while the net loss was $1.8 million, which was still an improvement from the loss of $6.4 million recorded in the second quarter of 2020. "Revenues of $12.0 million for the quarter reflect the anticipated sequential quarter decline in COVID-19 testing as more Americans became vaccinated," said  Michael Nall, Biocept’s CEO in a statement. READ: Biocept appoints David Karlander as senior vice president of Commercial Operations "That said, COVID-19 testing volume in the current quarter is presently running at a higher rate than second-quarter levels largely due to the Delta variant with more than 50,000 samples received in the past month as we near the 500,000 sample milestone. We are prepared for increases in COVID-19 testing volume in the coming weeks as we begin receiving samples from California community college students returning to in-person classes." Nall added. In the second quarter, Biocept signed an agreement to make its coronavirus testing available to the more than 2.1 million students, as well as faculty and staff of the California community college. On its CNSide cerebrospinal fluid assay that detects cancer that has metastasized to the central nervous system, the firm said volume of the tests had "grown each consecutive quarter" since the beta launch in early 2020. "We have now received orders from more than 30 leading U.S. academic institutions with the majority becoming repeat customers. Importantly, we have seen CNSide positively impact the life expectancy and the quality of life of patients who otherwise might be referred to hospice care," said Nall. The company boss added he was "pleased" with Medicare’s decision to provide coverage and high-value payment for the group's Target Selector breast cancer assay that detects the HER2 biomarker. "Testing for the HER2 biomarker is among the most important sources of information when making treatment decisions for patients diagnosed with breast cancer and is among our most frequently ordered assay profiles" he noted. In other developments in the quarter, Samuel Riccitelli was named chairman, while the company's board was expanded to nine with the appointments of Linda Rubinstein and Antonino Morales as directors. In addition, Biocept common stock was added to the Russell Microcap Index, a broadly used performance benchmark for smaller growth stocks in the USA. As of June 30 this year, Biocept had cash and cash equivalents of $19.5 million, compared with $14.4 million at the end of 2020. During the three and six months ended June 30, 2021, the company raised net cash proceeds of $3.9 million through the sale of common stock under its at-the-market (ATM) facility. Contact the author at giles@proactiveinvestors.com