Biocept, Inc.

Net revenues in Q3 2022 were $5.6 million, including $4.7 million from COVID-19 testing, versus $17.5 million in Q3 2021, including $16.5 million from COVID-19 testing. Commercial samples were 49,874 in Q3 2022 versus 152,796 a year ago. Cost of revenues was $5.8 million versus $11.3 million; R&D was $1.4 million versus $1.3 million; G&A was $3.0 million versus $3.5 million; and sales and marketing was $1.0 million versus $1.9 million. Net loss attributable to common stockholders was $5.1 million, or $0.33 per share, versus a loss of $0.6 million, or $0.04 per share, in Q3 2021. For the first nine months of 2022, revenue was $36.1 million versus $47.3 million in the prior-year period, and net loss attributable to common stockholders was $13.6 million, or $0.80 per share, versus net income of $0.1 million, or $0.01 per share. Cash was $18 million as of September 30, 2022. Management did not provide formal numeric guidance, but said it expects Q4 ordering to slow seasonally, expects to announce a second revenue-generating biopharma collaboration either later this year or early next year, expects to open an additional 4C trial center later this year or early next year, and expects CNSide study results to be published in the first half of 2023.

Sam Riccitelli framed the quarter around Biocept’s shift toward CNSide and neurological tumor diagnostics. He said the company is building evidence for clinical utility, reimbursement, and guideline adoption, and highlighted momentum from a melanoma validation, ongoing investigator-initiated studies, and growing interest from KOLs and biopharma partners. His tone was constructive and forward-looking, but he acknowledged near-term seasonality and the company’s still-small commercial footprint.

Antonino Morales focused on the revenue decline tied to lower COVID testing volume and detailed the cost structure. He said Q3 cost of revenues fell to $5.8 million, G&A to $3.0 million, and sales and marketing to $1.0 million, with lower stock-based compensation, headcount, and commissions contributing to the declines. He also said the company had started reducing the expense base in anticipation of exiting COVID testing and expects improvements in expenses after Q4, while noting he could not yet project specifics. Cash was $18 million at September 30, 2022, and he cited $3.5 million of G&A in the first nine months as nonrecurring.

The main analyst question centered on the post-COVID expense base, and management said reductions are already underway in operating costs and headcount, with more improvement expected after Q4, but no specific forecast was given. The analyst also asked how Biocept is reaching the NCI centers that have not yet ordered CNSide and what repeat ordering has looked like. Management said the sales organization is small, geographically limited, and heavily reliant on KOL engagement and conference meetings, and added that repeat usage appears to be ‘relatively good’ with rising cases per client and evidence the test is ‘sticky.’