Enzo Biochem, Inc. (NYSE:ENZ) stock fell 0.53% (As on Oct 13, 12:25:40 AM UTC-4, Source: Google Finance) though the company in the fourth quarter of FY 21 has reported 27% rise in the revenues to $24.8 million, from $19.5 million in the fourth quarter last year, but a decrease of 24% sequentially. Results reflect strong product sales, moderated by a slow-down in COVID-19 testing during the summer months. A subsequent uptick in activity has resulted from growing evidence of increasing incidence of new virus variants, leading to heightened infections and hospitalizations, in addition to reduced preventive measures including masking. The company has reported GAAP net income was $3.3 million or $0.07 per share versus a net loss of $(3.3) million, or ($0.07), in the year-ago quarter.
Moreover, Enzo Clinical Lab revenue increased 30% to $16.8 million from $12.9 million in the fourth quarter 2020. The year-over-year improvement was driven by increased accession count and a 6% growth in net revenue per accession due to factors related to the COVID-19 pandemic. Clinical services gross margin decreased to 36% from 49% in the sequential third quarter 2021, primarily due to fewer COVID-19 tests. Enzo Life Sciences revenue of $8.1 million grew 38% from $5.8 million in the fourth quarter 2020 due to the impact of COVID-19 pandemic globally in the 2020 period. Gross margin has expanded to 47%, compared to 46% in the previous year’s quarter and 47% in the sequential third quarter. Meanwhile, the Company’s strategic initiatives and succession planning are ongoing. Enzo’s GENFLEX sales and marketing strategy is undergoing multiple regulatory approvals for test submissions. The Company’s vigorous R&D program includes a focus on cytology, immunodiagnostics, and immunohistochemistry (IHC) involving locating antigens in biopsy tissue to diagnose some types of cancer. Enzo is also actively involved in the development and future commercialization of point-of-care platforms that are gaining increasing interest in clinical diagnostics. Enzo is also planning for continued focus on opportunities driven by the continuing COVID-19 pandemic. With the launch of the GoTestMeNow platform, the first-ever direct-to-consumer offering, Enzo is now providing physician-authorized laboratory tests directly to patients for COVID-19. The Company, in line with its cost-cutting efforts, also reported reductions in cost of sales and operating expenses.