Universal Biosensors, Inc.(ASX:UBI) generated revenues of $7.7 million for the March quarter, down slightly from $7.9 million in the prior corresponding period.
However, it is worth digging deeper than the headline figures, as this year’s result was affected by a reduction in revenues from the sale of Xprecia Stride test strips to Siemens (NSE:SIEMENS).
In vitro diagnostic testing
Universal Biosensors is a specialist medical diagnostics company focused on development, manufacture and commercialisation of in vitro diagnostic tests for point-of-care use.
These tests capitalise on a technology platform which uses a novel electrochemical cell that can be adapted for multiple analytes and provide for enhanced measurements in whole blood.
LifeScan revenues in line with prior quarter
Quarterly service fees paid to the company by LifeScan for the supply of blood glucose test strips were $6.9 million, slightly up on the previous comparable quarter.
Revenue from the sale of Xprecia Stride™ Coagulation Analyser test strips was $500,000 in the March quarter of 2018 compared to $900,000 in the previous corresponding period.
This reflected a build-up of inventory by Siemens during the first nine months of calendar year 2017 as it commenced its full commercial launch of the Xprecia Stride™.
Research and development spending ahead of trials
From a cost perspective, other operating costs and expenses for the March quarter were up 47% on a year-on-year basis.
This was largely due to increased research and development expenditure due to the ramp-up of various development tests for Siemens.
This was in relation to a new and alternative coagulation product which is being designed to expand PT-INR functionality and penetration in the point-of-care coagulation market.
These development tests are required as the product advances towards regulatory clinical trials.