VolitionRX Ltd. ((VNRX)) has held its Q4 earnings call. Read on for the main highlights of the call.
VolitionRx Ltd. demonstrated a generally positive sentiment during its latest earnings call, highlighting significant progress in revenue growth, cost reduction, and clinical advancements. However, the company acknowledged ongoing challenges in achieving predictable revenue streams and managing cash flow. The focus on securing multiple licensing deals in 2025 was emphasized as critical to future success.
Nu.Q Vet Cancer Test Expansion
The Nu.Q Vet Cancer Test has seen remarkable expansion, now accessible in over 20 countries. In 2024, approximately 120,000 tests were sold, doubling the previous year’s sales and resulting in a 75% increase in veterinary revenue compared to 2023. This expansion highlights the growing demand and acceptance of the test in the veterinary market.
Significant Revenue Growth
VolitionRx recorded $1.2 million in revenue for 2024, marking a 59% increase from 2023. The Nu.Q Vet Cancer Test revenue grew by 75%, while the Nu.Q Discover revenue saw a 40% increase. This growth underscores the company’s successful efforts in expanding its market reach and product acceptance.
Cost Reduction Success
The company achieved a 23% reduction in operating expenses year-over-year, with a notable 31% reduction in the second half of 2024 compared to the previous year. This cost reduction strategy has been pivotal in improving the company’s financial health and operational efficiency.
Nu.Q Cancer Clinical Progress
The Nu.Q Cancer platform has made significant strides, demonstrating its ability to differentiate between malignant and benign pulmonary nodules in an 800-patient study. Further validation studies are underway, which could enhance the platform’s clinical credibility and application.
Nu.Q NETs Sepsis Marker Success
The Nu.Q NETs test has shown promising results as a surrogate marker for neutrophil extracellular traps (NETs) in sepsis across multiple studies. This success has generated interest from key opinion leaders and potential licensing partners, indicating a strong future potential for the test.
Nu.Q Discover Pharmaceutical Partnerships
VolitionRx has entered its first human clinical study partnership with a leading pharmaceutical company. This partnership is expected to generate significant revenue and validate the Nu.Q Discover program, marking a major milestone in the company’s expansion into human clinical applications.
Revenue Uncertainty
Despite the growth, revenues remain fairly lumpy and difficult to predict on a quarterly basis. The company has not provided specific revenue guidance for 2025, indicating a cautious approach to forecasting amid market uncertainties.
Cash Flow Challenges
Net cash used in operating activities was $25.9 million in 2024, though this was a 17% reduction year-over-year when excluding milestone payments received in 2023. Managing cash flow remains a critical focus for the company as it navigates its growth trajectory.
Delayed Automation in Vet Testing
The point-of-care market for Nu.Q Vet is expanding but remains less than 20% of the total market. The company recognizes that central lab automation is crucial for accelerating growth and is focusing on this area to enhance market penetration.
Forward-Looking Guidance
VolitionRx aims to achieve cash neutrality in 2025, ensuring that income, including licensing receipts, matches expenditures on a cash basis. The company plans to replicate its veterinary success in the human market by signing multiple licensing deals and automating centralized labs to accelerate growth and expand the use of its Nu.Q platform in clinical settings.
In summary, VolitionRx Ltd.’s earnings call conveyed a positive outlook with significant advancements in revenue growth and clinical progress. While challenges in revenue predictability and cash flow management persist, the company’s strategic focus on licensing deals and automation positions it well for future success.