NantHealth lost $184 million in 2016 as struggles plague Soon-Shiong’s cancer tech
The hits keep coming for NantHealth: The company lost $184 million last year as its GPS Cancer diagnostic test failed to find success, the company announced Thursday.
While the company reported revenue of $100 million, about $62 million was spent on just research and development. And 2016’s losses were twice as much as those in 2015, which officials blamed on the lack of sales growth for GPS Cancer.
GPS Cancer is touted as a revolutionary tool in cancer genetics. While 264 oncologists ordered tests from the tool this year, the number of ordered tests began to drop at the end of 2016. In total, 524 were ordered in the third quarter and 452 in the fourth quarter. More than 300 of these tests were for research purposes.
In total, NantHealth has sold less than 1,000 commercial GPS Cancer tests.
“We expect to continue to incur operating losses over the near term as we drive adoption of GPS Cancer, expand our commercial operations and invest further in NantHealth solutions,” officials said in a statement.
Currently, NantHealth has contracts with eight insurers including several that cover the cost of the test for patients, officials said. It will continue to pursue more contracts in 2017, including the “positive advances in discussions” with the Centers for Medicare and Medicaid Services.
During a Thursday earnings call, biotech mogul Patrick Soon-Shiong who owns NantHealth, said the company will “aggressively expand our sales efforts.”
NantHealth and Soon-Shiong have been under fire this year due to two damning Stat reports. One claimed Soon-Shiong used charitable donations to bolster NantHealth, while the other said the company’s cancer moonshot initiative was merely a marketing ploy for GPS Cancer.
Several lawsuits have been filed and the company’s stock has plummeted, as a result. On Friday afternoon, Nant Health shares were selling at $4.65 a share. It has traded as low as $3.82 per share in the past few weeks.