VolitionRX Ltd (VNRX) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Advances

GuruFocus News

Tue, Apr 1, 2025, 1:03 AM 4 min read

Total Revenue: $1.2 million in 2024, a growth of 59% over 2023.
Nu.Q Vet Cancer Test Revenue: $0.8 million, a 75% increase over the prior year.
Nu.Q Discover Revenue: $0.4 million, with a year-on-year growth of 40%.
Operating Expenses: Reduced by 23% compared to 2023; second-half expenses down 31% year-on-year.
Net Cash Used in Operating Activities: $25.9 million in 2024, down 17% year-on-year excluding milestone payments.
Cash and Cash Equivalents: Approximately $3.3 million at the end of 2024.
Non-Dilutive Funding: Received approximately $1.8 million from Belgian institutions in 2024.
Nu.Q Vet Cancer Tests Sold: Approximately 120,000 tests in 2024, more than double the prior year.

Warning! GuruFocus has detected 7 Warning Signs with VNRX.

Release Date: March 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

VolitionRX Ltd (VNRX) achieved significant milestones in 2024, including expanding access to the Nu.Q Vet Cancer test across more than 20 countries.
The company recorded a 59% increase in revenue for 2024, with a notable 75% growth in revenue from the Nu.Q Vet cancer test.
VolitionRX Ltd (VNRX) has completed several large independent studies supporting the value of their Nu.Q platform, with plans to publish many of these studies in 2025.
The company is making progress in signing multiple licensing deals for their Nu.Q platform in the human market, with strong interest from large companies.
VolitionRX Ltd (VNRX) has significantly reduced operating expenses by 23% compared to 2023, contributing to their goal of being cash neutral in 2025.

Negative Points

Revenues remain unpredictable and lumpy due to the nature of customer purchasing patterns, which can affect quarterly financial performance.
Despite progress, the company is still in the early stages of commercialization, making revenue forecasts challenging.
VolitionRX Ltd (VNRX) faces risks and uncertainties related to the successful completion and commercialization of ongoing studies and projects.
The company is reliant on non-dilutive funding and equity sales to support operations, which may pose financial risks if such funding is not secured.
The Nu.Q platform's success in the human market is contingent on signing licensing agreements, which are still in progress and not guaranteed.

Q & A Highlights

Q: Can you provide an update on the feline cancer testing program and its progress? A: Cameron Reynolds, CEO, explained that significant adaptation work has been done to tailor the platform for felines, which involves using smaller blood samples. The project is progressing well, and completion is expected later this year. A milestone payment of $5 million from Antech is anticipated upon completion.

Q: Regarding the Lyon study, how might the test be implemented in practice, and are there plans for its adoption? A: Andrew Retter, Chief Medical Officer, noted that the Lyon study results are promising, and there are plans for prospective studies. The test could be rapidly adopted in cancer programs if results are confirmed. Discussions are ongoing with national screening programs in France and Taiwan, with potential for significant test volumes.

Q: What were the key drivers behind the quarterly sales trends, and what is the outlook for 2025? A: Terig Hughes, CFO, explained that sales were lumpy due to large customers buying stock in batches. In 2025, automation in central labs and the rollout of Antech's Element i+ Analyzer are expected to drive growth. The focus is on licensing deals in nets and oncology, which could be transformative.

Q: How is VolitionRX managing financing risks, and what are the plans for non-dilutive funding? A: Terig Hughes stated that cash burn has been reduced, and support from the Walloon region in Belgium continues. The focus is on securing licensing agreements while maintaining tight control over expenses and cash flows.

Q: How has the increased data sharing at conferences impacted licensing discussions? A: Cameron Reynolds highlighted that the extensive data has energized discussions with major companies. Data rooms for oncology and netosis are updated regularly, supporting ongoing negotiations. Key opinion leaders' endorsements also help drive interest from large companies.

Q: What is the current average contract size for Nu.Q Discover, and how has it evolved? A: Cameron Reynolds noted that initial contracts start in the tens of thousands, with subsequent stages reaching up to $500,000 or more. The goal is to move into multi-million dollar contracts as part of companion diagnostics, with significant short-term revenue potential.

Q: Can you provide more details on the 500-patient validation study at National Taiwan University Hospital? A: Cameron Reynolds reported that the study is progressing well, with expectations to replicate previous data showing the test's ability to differentiate between benign and cancerous nodules. Successful results could lead to inclusion in Taiwan's national screening program.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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