Revenues
Commercial revenue in H1 2013 amounted to €3.0 million compared to €1.5 million in H1 2012, representing an increase of 108%. No revenues were derived from government grants as the company continued to focus on growing its commercial revenue sources.
Test volumes for ConfirmMDx for Prostate Cancer continued to increase, with more than 4,500 tests sold to date since launch. A steady increase in reimbursement from private third-party payers was recorded during the period, with more than 90 insurers now paying for the test. This is expected to increase further through the agreements with Multiplan and Three Rivers, which plans have combined access to 67 million covered lives.
Operating Expenses
Operating expenses for 1H 2013 were €7.6 million, increasing 24% compared to €6.1 in 1H 2012. As previously noted, this increase was attributable to the build-up of the U.S. operations in support of ConfirmMDx for Prostate Cancer test commercialization, as well as R&D investment in our pipeline of new diagnostic tests.
Non-operational and one-time restructuring costs, not expected to continue in future periods, amounted to €302K for the period.
Results
As expected, 1H 2013 loss increased over the same period in 2012 due to costs associated with growing commercial infrastructure to support U.S. sales and marketing and new product R&D investment. The company's operating loss (EBIT) increased by 39.7%, and the net loss increased by 40.2% in H1 2013.
Cash Position
MDxHealth ended the first half of 2013 with cash and cash equivalents of €24.7 million compared to €6.6 million on June 30, 2012. The increase in cash was supported in part by the €18 million gross private placement closed on June 25, 2013.
Outlook
Based on the growth in the first two quarters of 2013 we anticipate continued growth in test volumes, our customer base and payer reimbursement in coming quarters.