Home HealthCare Trader Buzzer: Vermillion, Inc. (NASDAQ: VRML)

Trader Buzzer: Vermillion, Inc. (NASDAQ: VRML)

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Farmers harvest zucchinis at a farm project by agriculture company Al Sulaiteen Agricultural and Industrial Complex (SAIC) in Umm Salal Mohammed, north of Doha, December 29, 2011. Qatar's energy resources have given it one of the world's highest per capita incomes, a futuristic urban skyline and enough clout to host the 2022 soccer World Cup. But its wealth may not be enough for the arid state to achieve an even more ambitious aim: becoming mostly self-sufficient in food. Picture taken December 29, 2011. To match Feature QATAR-FOOD/ REUTERS/Fadi Al-Assaad (QATAR - Tags: AGRICULTURE FOOD) - RTR2VVQ1

On Thursday, Shares of Vermillion, Inc. (NASDAQ: VRML), gains 3.86 percent and now trading at $1.83 in the current trading session. The current trading range of the stock ranges between $1.75 and $1.95.

Vermillion, Inc. (NASDAQ: VRML), a bio-analytical solutions company paying attention on gynecologic disease, declared on its financial results for the 1st– quarter finished March 31, 2017.

Valerie Palmieri, President and CEO of Vermillion, Inc., declared, “The first quarter was a milestone as the 1st– time we have seen quarter-over-quarter and YOY development in territories in which we have sales representation. We were glad to see consistent momentum in field sales growth and managed care contracts as we continue our march in 2017 to enlarge payer coverage and adoption of our OVA1 test.”

Recent Corporate Developments:

Achieved quarter-over-quarter and yoy test growth per day of 8.00 percent and 23.00 percent, respectively, in territories covered by our field sales force.

Declared the foundational publication for our planned OVA1 plus 2.00 informatic product titled, “Evaluation of a Validated Biomarker Test in Combination with a Symptom Index to Predict Ovarian Malignancy.”

In a 2016 study performed with 218 patients who presented with pelvic masses, the combination of a symptom index (SI) and OVA1 showed a sensitivity to detect primary ovarian malignancy of 100.00 percent, detecting both early and late stage cancers better than either SI or OVA1 alone. In Addition To, the negative predictive value of SI and OVA1 combined was also 100.00 percent, demonstrating that all women that tested negative for both tests were certain not to have a primary ovarian malignancy.

Signed an in-network, contracted agreement with Humana Military (administrator of the TriCare contract in the South Region), which serves approximately 2.50M beneficiaries in the states of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, Texas (apart from El Paso) and Fort Campbell, Kentucky.

Attained Certified Provider Status with all TriCare regions, resulting in a combined extra 9.40M covered lives with positive OVA1 coverage (numbering the aforementioned TriCare South’s 2.50M beneficiaries).

Q1 2017 Financial Results

Total revenue increased 44.00 percent in the first quarter of 2017 contrast to the previous year quarter. Total revenue in the first quarter of 2017 was $726,000.00 contrast to $505,000.00 in the same year-ago quarter. The first quarter 2017 revenue included $678,000.00 from product sales of OVA1 by ASPiRA LABS and $48,000.00 of service revenue from ASPiRA IVD. All prior year revenue was from product sales of OVA1 as ASPiRA IVD began operations in June 2016, and thus there was no comparable service revenue in the first quarter of the prior year. Product revenue raised 34.00 percent in the first quarter of 2017 contrast to the previous year quarter.

There were 2,293.00 OVA1 tests performed throughout the first quarter of 2017 contrast to the 2,265.00 OVA1 tests performed in the previous year quarter.  However, revenue on a per test performed basis increased to $296.00 in the first quarter of 2017 contrast to $223.00 in the first quarter of 2016, representing a 33.00 percent boost.  This number contrast to $281.00 in the 4th– quarter of 2016, which was normalized for a one-time item of approximately $45,000.00 or $20.00 per test attributed to the resolution of billing issues with Novitas (our Medicare contractor).

Cost of product revenue for the first quarter of 2017 totaled $422,000.00 representing a 20.00 percent decrease from the previous year quarter because of lower consulting and personnel expenses. In the first quarter of 2017, cost of service revenue totaled $305,000.00 for ASPiRA IVD services.

Total operating costs in the first quarter of 2017 decresed to $2.70M contrast to $4.90M in the same year-ago quarter, representing a decrease of 46.00 percent. The decline was due mainly to commercial operating efficiencies in addition to lower research and growth expenses following expiration of our partnership contract with The Johns Hopkins University School of Medicine and the clearance of Overa in March 2016.

Net loss for the first quarter of 2017 was $2.70M or $(0.050) per share, as contrast to a net loss of $4.90M or $(0.090) per share in the similar year-ago quarter.

As of March 31, 2017, cash and equivalents totaled $7.90M, numbering the $5.10M in net proceeds from our private placement of common stock and warrants in February 2017. The company used $2.60M in cash in the first quarter of 2017. We plan for cash utilization to continue to declined in the 2nd– quarter of 2017 with a aim of decreasing our cash utilization to under $2.00M per quarter over the balance of 2017.

Conference Call and Webcast: 

Vermillion’s President and CEO Valerie Palmieri will host a call recently to talk approximately results followed by a question and answer period.

Thursday, May 11th @ 8:30am Eastern Time

Domestic: 888-596-2629

International: 913-312-0678

Conference ID: 3158379

Replays, available through May 25th:

Domestic: 844-512-2921

International: 412-317-6671

Replay PIN: 3158379

Please call the conference/ discussion phone number 5- minutes earlier than the start time. An operator will register your name and organization. If you have any trouble connecting with the conference/meeting call, please contact Vermillion at (203) 993-8300.

Analyst recommendation for this stock stands at 1.00.