Cancer Genetics Inc., a Rutherford-based oncology services firm, announced a series of transformative initiatives as part of its quarterly financial statements.
In its news release covering first-quarter 2018 results, the company described the expansion of its Biopharma and Discovery Services businesses, and said it will divest certain nonstrategic assets and reduce its geographic footprint. Both of the latter elements are underway, according to CEO John A. Roberts.
“Our progress during the first quarter aligned with our transformation strategy for 2018, which focuses on leveraging our core competencies and market-leading portfolio of diagnostics to accelerate the path to profitability and improve our competitive position,” Roberts said in a prepared statement.
Roberts said he expects the asset divestiture and footprint reduction to drive revenue growth while reducing operating costs.
So far, the company has sold its Indian operations, called BioServe Biotechnologies (India) Private Ltd. to REPROCELL Inc., it said, and begun the consolidation of its Los Angeles laboratory operations to New Jersey- and North Carolina-based facilities. That move is expected to be concluded by the end of the third quarter, and save the company $4 million annually.
“These actions represent an important step in focusing our business, simplifying our operating structure and generating monetary value for the company, and are consistent with the execution of the transformation strategy,” Roberts said.
Cancer Genetics noted that Q1 revenue was up 10 percent over the first quarter of 2017. The company’s net loss of $4.5 million, or 16 cents per share, was narrower than the year-earlier loss of $9.6 million, or 51 cents per share.