Biocept, Inc.

Third-quarter 2022 net revenues were $5.6 million, including $4.7 million from COVID-19 test revenue, versus $17.5 million in Q3 2021, including $16.5 million from COVID-19. 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 million versus $3.5 million; and sales and marketing was $1 million versus $1.9 million. Net loss attributable to common stockholders was $5.1 million, or $0.33 per share, versus a $0.6 million loss, or $0.04 per share, in Q3 2021. For the first nine months of 2022, revenue was $36.1 million versus $47.3 million last year, operating expenses were $49.5 million, 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, in the prior-year period. Cash was $18 million at September 30, 2022. Forward-looking commentary: management expects some Q4 seasonal slowdown in CNSide ordering, anticipates stopping COVID testing beyond 2022, expects expense-base reductions after the fourth quarter, expects a second revenue-generating biopharma collaboration later this year or early next year, plans to open an additional center in the 4C trial later this year or early next year, and expects CNSide study results to be published in a peer-reviewed journal in the first half of 2023.

Sam Riccitelli framed the quarter around Biocept’s pivot toward neurological tumor diagnostics and CNSide as the company’s core growth engine. He emphasized that CNSide is the first commercially available test to measure CNS biomarker status in real time, now validated for melanoma in addition to breast cancer, non-small cell lung cancer and other carcinomas. His tone was constructive but realistic: he pointed to progress in clinical evidence, biopharma interest, and adoption, while noting a likely Q4 slowdown from holiday seasonality.

Antonino Morales focused on the shrinking legacy COVID business and the company’s cost structure. He reported Q3 revenue of $5.6 million, cost of revenues of $5.8 million, R&D of $1.4 million, G&A of $3 million, and sales and marketing of $1 million, with the Q3 net loss at $5.1 million, or $0.33 per share. He also said the company had $18 million in cash at September 30, 2022, and explained that expense reductions had already begun in anticipation of exiting COVID testing, with further improvements expected after Q4, though he did not give specifics.

The main analyst question centered on how much the expense base can come down after Biocept exits COVID testing. Morales said reductions are already being made in operating costs and headcount, and that the company expects improvements after the fourth quarter, but he would not provide specific projections. Another question asked how Biocept is reaching the remaining NCI cancer centers and whether repeat orders are occurring; Riccitelli said the field force is small, geographically limited, and relies heavily on KOL engagement, and he said repeat usage appears “relatively good” with rising cases per client and more physicians ordering each quarter.