Nanogen, Inc., global developer of molecular diagnostic test kits, announced remarkable revenue and cost figures for the third quarter of 2008. Not only did revenues increase by a whopping 64% to $13.8 million compared to the same quarter in 2007, the company also managed to slash sales costs by 31%. The combination has accelerated the company’s move to profitability, especially in light of the recently announced plans to merge next year with French diagnostics company Elitech.
Nanogen Chairman and CEO, Howard C. Birndorf, summarized the importance of the results. “Our third quarter results continue to show the excellent progress we are making as a result of our business restructuring. Compared to one year ago, we experienced a substantial reduction in spending while continuing our strong revenue growth. This continuing improvement in business operations, combined with the planned merger with Elitech in early 2009, will complete the transformation of Nanogen into a profitable, global in-vitro diagnostics company.”
The results firmed up company financial guidance for 2008. Anticipated revenue growth, together with operating expense reductions and improved gross margins, should allow the company to continue to improve quarterly operating cash flow through the end of 2008, as measured by modified EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Nanogen, based in San Diego, pioneered the development of biomarkers, molecular biology technologies and nanotechnology, for diagnostic and healthcare applications. The company develops diagnostic products that provide faster and easier diagnosis, treatment, and monitoring of cardiovascular and infectious diseases, including molecular diagnostic kits and reagents, and rapid test kits that can be used in urgent care settings or at the point-of-care.
In August, Nanogen announced plans to merge with The Elitech Group, a private French diagnostics company. The merger is expected to generate first year revenues of $150 million, and positive EBITDA.
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