Oxford Immunotec has 36% revenue gain in second quarter
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Oxford Immunotec's Marlborough offices. The company saw a spike in revenue but was weighed down by costs in the second quarter.
Oxford Immunotec, a Marlborough medical diagnostics company, saw revenue jump by just over one-third in the second quarter, but high costs kept the company in the red.
Oxford's revenue jumped to $26 million from $19 million a year ago, with the growth attributed to the company's tuberculosis and tick-borne disease businesses. North American growth far surpassed growth in Asia and Europe.
Rising costs kept the company from turning a profit. Oxford said it had a second-quarter net loss of $16.8 million thanks to expenses of $31.4 million. Those expenses were a 75-percent jump from the prior year, which the company said was due to a legal settlement, ongoing patent litigation and expenses related to biologics license applications to the U.S. Food and Drug Administration.
The legal settlement ended a dispute the company said rose from a license agreement with Danish researcher Statens Serum Institut. Oxford said the terms of the agreement are confidential and that it no longer expects to pay royalties to SSI, which will improve its margins.
SSI allowed Oxford to sub-license certain patents in a tuberculosis diagnostic kit, Oxford said. The Marlborough company paid SSI more than $17 million in royalties through last year.
Oxford shares were trading in the $17 range on Tuesday, a level not seen for the company since 2014 and continuing a year-long steady increase.
The company expects growth to continue this quarter, projecting revenue of between $29.5 and $30.5 million. It forecasts growth of 20 percent to 23 percent for the full year.
Oxford recently announced it hired a new chief medical officer, Richard Wenstrup. Wenstrup was the founding director of the Molecular Diagnostics Laboratory at Cincinnati Children's Hospital and co-founder of Assurex Health Inc., now a subsidiary of Myriad Genetics Inc., Oxford said.
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