MDxHealth reports Q1 EPS (17c) vs. (19c) last year

Reports Q1 revenue $27.39M, consensus $26.19M. Michael McGarrity, CEO of mdxhealth (MDXH), commented: “As we prioritized the integration of our recently acquired ExoDx business and to allow for renewed focus on our core prostate cancer business, we have made the strategic decision to discontinue our Resolve UTI offering and laboratory operations in Plano, Texas. The Resolve test was uniquely designed for our urology customer base to aid in the rapid diagnosis and therapy of patients presenting with often serial, complex, multi-organism infections. Despite the urgent clinical need and medical necessity of the Resolve test, the increasingly uncertain reimbursement landscape, fueled by an unexplained recent policy reversal by our Texas lab’s Medicare administrator (Novitas), has made the continued operation of this business line unsustainable. We believe this proactive exit allows us to focus our operating discipline and sales force on our prostate cancer precision diagnostics, which will drive the most value for our customers, patients and stakeholders.”