Pacific Biosciences of California (PACB) recently declared financial results for its fourth quarter ended December 31, 2016.
Revenue for the fourth quarter of 2016 totaled $25.7 million, contrast to $36.3 million for the fourth quarter of 2015. Product and service revenue for the fourth quarter of 2016 raised 92.2% to $24.4 million, contrast to $12.7 million for the fourth quarter of 2015. Contractual revenue for the fourth quarter of 2016 was $1.3 million, reflecting the remaining $1.3 million of amortization of the upfront payment recognizable upon the termination of the Company’s development, commercialization and license agreement with F. Hoffman-La Roche Ltd in December 2016. Contractual revenue for the fourth quarter of 2015 was $23.6 million, reflecting $20.0 million of milestone revenue from Roche and $3.6 million of quarterly amortization of the upfront Roche payment.
Gross profit for the fourth quarter of 2016 was $11.4 million, resulting in a gross margin of 44.2%, contrast to gross profit of $26.5 million and a gross margin of 72.9% for the fourth quarter of 2015. The gross profit and margin for the fourth quarter of 2015 was mainly driven by the $20.0 million revenue milestone from Roche, which had a 100% gross margin. Apart From this milestone revenue, gross profit and gross margin for the fourth quarter of 2016 raised significantly over the same period in 2015 mainly as a result of the higher margin sales of the Company’s SequelTM System which was launched in the fourth quarter of 2015.
Operating expenses totaled $29.3 million for the fourth quarter of 2016, contrast to $27.5 million for the fourth quarter of 2015. Operating expenses for the fourth quarters of 2016 and 2015 included non-cash stock-based compensation of $4.3 million and $3.6 million, respectively.
The net loss for the fourth quarter of 2016 was $19.0 million, contrast to a net loss of $1.4 million for the fourth quarter of 2015.
Cash, cash equivalents and investments, apart from restricted cash, at December 31, 2016 totaled $72.0 million, contrast to $82.3 million at December 31, 2015.
Envision Healthcare Holdings Inc (EVHC) has accomplished the acquisition of Emergency Professional Services (EPS), a group of more than 50 emergency medicine physicians and 20 advanced practice providers who care for patients at four Phoenix, AZ-based hospitals.
EPS’ clinical professionals have offered care at Banner Health System’s flagship Banner University Medical Center for more than 35 years and also practice at three other Banner Health facilities.
“Our decision to join Envision was based, in part, on the changes that are occurring within healthcare, counting reimbursement dynamics and a higher level of sophistication in terms of reporting on quality and demonstrating the value of the outcomes that we provide,” said Dave Streitweiser, M.D., EPS’ president and chief executive officer. “In addition, we will have access to resources that will support our growth, counting comprehensive provider recruiting and on-boarding resources that will allow us to more effectively respond to expansion opportunities within our communities.”
Since the merger of AMSURG Corporation and Envision Healthcare Holdings, Envision Healthcare Corporation’s Physician Services business has accomplished five physician group practice acquisitions, counting two anesthesia groups, one radiology, one neonatal and one emergency medicine group.
“We are encouraged by the level of interest that physician groups continue to express for being a part of our organization,” said Robert J. Coward, president of Envision’s Physician Services. “Our execution of a strategy that positions us as a trusted partner to health systems is proving to be attractive to providers who focus on the delivery of high-quality care, across a care continuum, to patients in their communities.”