TrovaGene Inc reported loss of 34 cents per share in the second quarter of 2016, narrower than the year-ago loss of 41 cents but a penny wider than the Zacks Consensus Estimate.

The narrower year-over-year loss was a result of moderating increase in operating expenses, which increased 51% to $10.1 million. Meanwhile, revenues were $104K as compared with $50K in the year-ago quarter, reflecting growing traction for Trovera.

The year-over-year upside in operating costs were chiefly attributed to an increase in research & development (R&D) as well as clinical & commercial activities. R&D expense increased on the back of the company’s continued investment in the development of a second generation urine sample collection kit and multiplex gene panels. These new products are expected to benefit the company by broadening adoption and application of its test.

Clinical Development Programs/Collaborations

TrovaGene continues to present and publish clinical data along with study results, which confirms the effectiveness of Trovera in detecting cancerous mutations.

At the 2016 American Society of Clinical Oncology (ASCO) Annual Meeting, TrovaGene presented clinical results demonstrating the effectiveness of its Trovera non-invasive test in detecting EGFR T790M mutations in the urine of patients with non-small cell lung cancer (NSCLC). (Read more: TrovaGene: Trovera Liquid Biopsy Urine Test Results Positive)
 

At the 2016 American Association for Cancer Research (AACR) Special Conference on Pancreatic Cancer, clinical data demonstrated Trovera’s superior detection ability of KRAS mutations in pancreatic cancer patients. Detection rate of circulating tumor DNA (ctDNA) KRAS in 210-patient study closely matched the published prevalence of KRAS mutations in pancreatic cancer (~90%).

At the 2016 Molecular DX Europe Conference, TrovaGene presented data featuring Trovagene's Precision Cancer Monitoring (PCM) platform. The presentation exhibited the utility of urine liquid biopsy as a modality for monitoring ctDNA and early drug response to anti-EGFR therapy in lung cancer patients.

Moreover, recent research collaborations with the likes of USC Norris Comprehensive Cancer Center and the University of Michigan Comprehensive Cancer Center is expanding the research horizon for Trovagene. These partnerships will enhance the popularity of the Trovera device among research oncologists, which will further drive its adoption. (Read more: TrovaGene: Trovera Liquid Biopsy Urine Test Results Positive)

Commercial Strategy & Reimbursement

TrovaGene stated that its continual commercial efforts have increased the number of sales qualified physicians from approximately 300 at the end of 2015 to over 700 year-to- date in 2016.
 

In the second quarter, new ordering physicians almost doubled on a sequential basis. The company continues to expand its customer base extending its reach in academic and research institutions as well as to community based oncologists.

As a result, sample volume nearly doubled in the quarter as compared with the first quarter of 2016.

Management also noted that over 160 million lives are now covered by health plans. TrovaGene expects collections to continue to grow and the timing of reimbursement to continue to improve as testing volumes continue to increase.

Zacks Rank & Stocks to Consider

Currently, TrovaGene has a Zacks Rank #3 (Hold).

Better-ranked stocks in the same space are Masimo Corp (MASI Quick QuoteMASI - Free Report) , Natus Medical and Mesa Laboratories (MLAB Quick QuoteMLAB - Free Report) . All the three stocks carry a Zacks Rank #1 (Strong Buy).

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