Nanosphere Announces Third Quarter 2010 Results

NORTHBROOK, Ill., Nov. 3, 2010 (GLOBE NEWSWIRE) -- Nanosphere, Inc. (Nasdaq:NSPH), a leader in the development and commercialization of advanced molecular diagnostics systems, today reported financial results for the third quarter ended September 30, 2010.

Product sales of $0.3 million for the third quarter of 2010 were slightly higher than the same period in 2009 and the prior 2010 quarter. Total revenues for the third quarter of 2010 were $0.4 million compared to $0.7 million for the third quarter of 2009 and $0.5 million for the second quarter of 2010. Revenues for the third quarter of 2009 included $0.4 million of service revenue related primarily to assay development contracts that have been completed.

"We continue to make progress developing a test menu focusing on three primary market opportunities," said William Moffitt, Nanosphere's president and chief executive officer. "The Verigene System directly addresses hospital needs including transition of microbiology to molecular methods, enabling point-of-care human and pharmacogenetic solutions, and detecting disease earlier through ultra-sensitive protein assays."

Cash at the end of the third quarter of 2010 was $45.6 million. Net loss was $10.9 million for the third quarter of 2010 as compared with $8.2 million for the same period in 2009. The increase in net loss was driven by a $1.2 million increase in litigation defense expenses for the recently settled patent litigation dispute with Eppendorf AG and a $0.5 million increase in non-cash stock compensation expense.

For the third quarter of 2010, research and development expenses increased to $4.9 million from $4.6 million in the third quarter of 2009 due to increased spending on clinical trial materials. 

Sales, general and administrative expenses increased from $3.5 million for the third quarter of 2009 to $5.3 million for the third quarter of 2010, due primarily to the Eppendorf AG matter and the increase in non-cash stock compensation expense noted above.