diaDexus, based in South San Francisco, California, is focused on the development and commercialization of proprietary cardiovascular diagnostic products addressing unmet needs in cardiovascular disease. DDXS is the successor to a company initially formed as a joint venture between SmithKlineBeecham Corporation and Incyte Pharmaceuticals, Inc. Upon formation, SmithKlineBeecham Corporation granted DDXS an exclusive license to certain diagnostic intellectual property, including Lp-PLA2, an inflammatory marker of cardiovascular risk.
DDXS markets two primary products, one in the United States and one in Europe. In the United States, the company’s PLAC® Test ELISA Kit is the only blood test cleared by the FDA to aid in predicting risk for both coronary heart disease and ischemic stroke associated with atherosclerosis. Heart disease and ischemic stroke are the top #1 and #3 causes of death in the United States. The company’s PLAC® Test for Lp-PLA2 Activity, a CE-marked test, is an indicator of atherosclerotic cardiovascular disease, the #1 cause of death in Europe. diaDexus is ISO 13485 certified and is manufacturing the PLAC Test for Lp-PLA2 Activity on-site.
Although DDXS is still a young company, its PLAC® Tests and its past financial performance set it apart from most of its competitors. Its first quarter results were impressive and are worth reviewing.
Total revenues for the first quarter of 2012 were $4.9 million. This was a 49% increase over $3.3 million for the first quarter of 2011. It also marked the seventh consecutive quarter of year-over-year revenue growth. Although total operating expenses for the quarter were $6.2 million, slightly more than the first quarter of 2011, the expenses rose because of higher product costs to support increased sales. The company’s net loss for the quarter narrowed to $1.3 million from a $2.5 million net loss in the first quarter of 2011. The improvement in net loss for the quarter was largely due to greater sales of PLAC® ELISA kits in the United States. Net cash used in operating activities for the first quarter of 2012 was $0.8 million versus $1.9 million for the same period the year prior.
Asked for comment about the first quarter results, Brian Ward, Ph.D., diaDexus’ Chief Executive Officer remarked that “Our first quarter revenues reflect increased market acceptance of the PLAC® Test. diaDexus is poised to take advantage of continued growth in cardiovascular specialty laboratories, with over 80% of our revenues coming from this rapidly growing segment. We are seeing more and more physicians understanding the value of advanced cardiovascular risk profiling for reducing and preventing cardiac and stroke events. Our PLAC® Test ELISA Kit is becoming an integral part of these very important diagnostic tests.”
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