Biocept Inc.’s (BIOC) molecular diagnostic assays help physicians in treating and monitoring patients with different cancers. During the COVID-19 pandemic, Biocept has also used its molecular diagnostic expertise to provide nationwide COVID-19 RT-PCR testing.
Let’s take a look at the company’s recent Q2 performance, as well as what has changed in its key risk factors that investors should be aware of. (See Biocept stock charts on TipRanks)
Driven by RT-PCR testing volumes, Biocept’s Q2 revenue jumped 1,209% year-over-year to $12 million, but fell short of consensus by $5.71 million. Since June 2020, it has received about 500,000 samples for RT-PCR testing.
Additionally, Biocept continues to witness growth in the use of its CNSide assay, with customers in over 30 U.S. academic institutions.
Biocept president and CEO Michael Nall commented, “We are encouraged by the ongoing adoption of our paradigm-changing neuro-oncology CNSide assay, which provides physicians with a valuable tool to diagnose and manage patients with tumors that have metastasized to the central nervous system. …
“CNSide volume has grown each consecutive quarter since our beta launch in early 2020.”
Biocept’s cost of revenues also jumped to $7.5 million, versus $2.5 million a year ago. A higher headcount and higher sales commissions led to increased expenses overall.
Net loss per share of $0.14 was an improvement over the $0.51 net loss per share posted a year ago.
On August 17, Maxim Group analyst Jason McCarthy reiterated a Buy rating on the stock, alongside a price target of $12; implying 239% potential upside.
McCarthy commented, “The company has had quite a remarkable year overall thus far and the revenue generation from COVID has been supporting the expansion of the core oncology business which remains on track.”
Now, let’s look at what’s changed in the company’s key risk factors profile.
According to the new TipRanks Risk Factors tool, Biocept’s main risk categories are Tech & Innovation and Finance & Corporate, accounting for 30% and 20% respectively, of the total 66 risks identified. Since June, the company has added one key risk factor.
Under Tech & Innovation, Biocept noted that if its cybersecurity measures — or the measures maintained on its behalf — get compromised, then Biocept’s business could face an adverse impact.
This may include interruption of its operations, reputational damage, fines, penalties, and loss of customers or revenue.
The sector average Tech & Innovation risk factor is 25%. Shares are down 21% in 2021.
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