CGIX went public with a fairly small IPO ($7M) in 2013. At the time, its businesses included "a joint venture with Mayo Clinic." Its business focused on molecular testing both for biopharma R&D and for clinical applications. It acquired Gentris, a biopharma genomics provider, in 2014. It acquired LA-based Response Genetics in 2015. Previously, it had acquired Pathworks, and in April 2018 received 510(k) for the tissue of origin test (here).
According to Yahoo Finance, its stock price has slide from over $11 in mid 2015 to about $1 today. According to the company's April 2 financial announcement, 2017 revenue was 63% biopharma/discovery, "supporting over 220 clinical trials." 2017 full year revenue was $29M, against a 2017 net loss of $21M. (E.g. about $50M in costs to generate $29M top line revenue).
Cancer Genetics changed CEO's in February 2018. On April 9, Genomeweb and other news sources covered a pair of new class actions lawsuits (here).
What's interesting, and familiar to anyone who tracks the messy chase for revenue in clinical molecular laboratories, are the following descriptions:
A major area of concentrated focus during the first quarter of 2018 was the careful evaluation of the Company’s accounts receivables, which had increased to approximately $16 million on the balance sheet prior to any adjustments.
A significant reason for the increase was disruptions in collections in its Clinical Services business. While the Company continues with its collections efforts on all claims, in the fourth quarter it recorded a bad debt expense of $4.4 million and wrote off $1.8 million of its accounts receivable, with a significant portion of the bad debt expense and write off related to collection issues with respect to the accounts receivable recorded subsequent to the 2015 acquisition of Response Genetics Inc.
Payors have declined to reimburse the Company on certain performed Clinical services due to:
- delays in filing its claims,
- the demands by payors for copies of patient medical records or diagnosis codes which have been difficult to obtain, and
- reimbursement challenges for certain of our next generation sequencing tests by Medicare and
- third-party managed care plans, among other reasons.
- As such, the Company has made a prudent decision to write these off in the fourth quarter. Management believes that its current outstanding accounts receivables are collectible, net of the allowance for doubtful accounts.
[Bullet-points added by me for clarity. The report also notes that accountants had made a "going concern" warning].
See also my blog in January 2018 about an executive leaving Hudson Alpha with the quotation, "The reimburesment [for advanced sequencing] is just not there" - here.