OpGen Inc. (NASDAQ:OPGN)
OpGen Inc. (NASDAQ:OPGN) is in the process of transitioning its business as focus shifts to developing the Acuitas family of genomic and informatics products. The shift comes on the company posting a wider than expected net loss in Q1 2017, attributed to a decrease in sales of FISH pathogen identification products. The company was also on the receiving end on the discontinuation of genome mapping products.
OpGen Q1 Results
Revenue in the quarter came in at $4.08 million – down from $1.1 million as of Q1 2016. Operating Expenses, on the other hand, soared to highs of $5.7 million from $5.6 million as OpGen Inc. (NASDAQ:OPGN) invested big on the Acuitas Rapid Test development. Net loss soared to highs of $5 million from $4.5 million as of Q1 2016.
Cash and cash equivalent as of the end of the quarter stood at $1.7 million compared to $4.1 million as of December 31, 2016. Development of the Acuitas Rapid Test is a key priority as the company believes it will provide the foundation for growth going forward.
During the quarter the company presented preliminary test results for the technology it hopes to use for the detection of resistance genes in multi-drug resistant pathogens
“In the preliminary results presented at ECCMID, our Acuitas technology demonstrated the ability to rapidly and accurately predict antibiotic susceptibility using resistance gene profiles. The development of our first Acuitas Rapid Test to detect resistance genes for interpretation by our Acuitas Lighthouse informatics is underway,” said CEO, Evan Jones.
Focus now shifts to implementing the Acuitas Rapid Test technology for external research use. OpGen is planning to expand the technology knowledge base by essentially completing 4,000 clinical isolates from various clinical sites include Merck SMART surveillance.
OpGen Inc. (NASDAQ:OPGN) is exploring a number of distribution and partnership relationships to support commercialization of the Acuitas Rapid Test. Accelerating growth of the business both in the U.S and on the international scene is also high on the agenda as OpGen looks to unlock new opportunities for growth.
Separately, OpGen Inc. (NASDAQ:OPGN) has confirmed the appointment of Dr. Tina S. Nova to its board of directors. Dr. Nova joins the board with vast experience in building novel genomics-based businesses. She is currently the CEO of Molecular Stethoscope Inc.
OpGen Inc. (NASDAQ:OPGN)’s stock was a big mover in Wednesday trading session having rallied by 6.09% to close at highs of $0.845 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.