Natera Inc (NASDAQ: NTRA) stock rose over 21.7% on March 13th, 2019 (as of 12:21 pm GMT-4; Source: Google finance) after the company in the fourth quarter of FY 18 has reported 29% increase in the total revenue to $67.0 million. Gross margins were 36% in the quarter compared to 29% in the same period of the prior year. Panorama revenues for the quarter were $36 million compared to $30.9 million in the fourth quarter of 2017, an increase of approximately $5.1 million. Horizon revenues for the quarter were $23.9 million compared to $16.1 million for the fourth quarter of 2017, an increase of approximately $7.8 million, driven by both volume growth and sales and product mix. Total operating expenses for the fourth quarter were roughly $54 million compared to $62 million in Q4 of 2017. Loss from operations for the fourth quarter of 2018 was $29.7 million compared to $46.6 million for the same period of the prior year. Net loss for the fourth quarter of 2018 was $31.8 million compared to net loss of $47.2 million for the same period in 2017.
At the close of the quarter, the company held approximately $158.5 million in cash and equivalents compared to $170 million as of September 30, 2018. As of December 31, 2018, the company held a net carrying amount of $73.4 million under the seven-year term $125 million debt facility with OrbiMed Advisors and had drawn down $50.2 million, including a quick accrued interest under the $50 million line of credit in place with UBS. As of December 31, 2018, Natera had a total outstanding debt balance of $123.6 million.
Meanwhile, NTRA has announced a $50 million partnership to commercialize Natera’s Signatera MRD test in China, and to develop reproductive health tests in select markets on BGI’s sequencing instruments using the DNBseq NGS technology platform.
NTRA expect the cumulative contract value to hit $40 million to $50 million by the end of 2019, driven by an increasing interest in MRD and molecular monitoring. In 2019, the company plan to support BGI development effort and drive further adoption in pharmaceutical companies by launching the clear version of Signatera.
NTRA expect 2019 total revenues of $275 million to $302 million. Gross margins to be 35% to 41%. Selling, general and administrative costs to be $180 million to $190 million. Research and development costs to be approximately $60 million to $65 million, and the cash burn to be approximately $80 million to $100 million.