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OncoCyte Corp (OCX)
NASDAQ:OCX
Top Page
OncoCyte
(NASDAQ:OCX)
55Neutral
Positive Factors
Market Disruption
Oncocyte has an ambitious plan to upend the current market for transplant rejection testing using donor-derived cell-free DNA (dd-cfDNA).
Product Adoption
The use of dd-cfDNA as a biomarker for transplant rejection is validated and broadly adopted across transplant centers in the U.S.
Strategic Partnerships
OCX has partnered with Bio-Rad Laboratories to commercialize its GraftAssure and VitaGraft tests and BIO has taken a ~9% stake in OCX.
Negative Factors
Cash Flow
OCX used ~$5.5M of cash in Q3 and ended Q3'24 with ~$14M of pro-forma cash, which is estimated as ~2-3 quarters of cash runway.
Revenue Performance
OCX's Q3'24 revenue of $0.1M came in below consensus' $0.2M.
Stock Performance
Shares have traded down 66% since Josh Riggs took the helm on an interim basis.
OncoCyte (OCX) vs. S&P 500 (SPY)
Market Cap
$91.80M
Dividend YieldN/A
Average Volume (3M)98.04K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth25.15%
EPS Growth81.47%
CountryUS
Employees46
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.40
Shares Outstanding28,599,285
10 Day Avg. Volume53,703
30 Day Avg. Volume98,036
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)80.73
Price to Cash Flow (P/CF)-2.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.63Price Target Upside51.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
OncoCyte Business Overview & Revenue Model
Company DescriptionOncoCyte (OCX) is a biotechnology company focused on the development and commercialization of novel diagnostics and therapeutic solutions in the field of oncology. The company operates primarily within the healthcare and biotechnology sectors, offering cutting-edge tests designed to aid in the early detection and treatment of cancer, enhancing patient care and outcomes.
How the Company Makes MoneyOncoCyte makes money through the sale of its proprietary diagnostic tests that are designed to detect cancer at various stages. The company generates revenue by marketing these tests to healthcare providers, hospitals, and laboratories. Key revenue streams include the sales of its diagnostic products and potential licensing agreements with other biotech firms. Additionally, OncoCyte may engage in partnerships or collaborations with pharmaceutical companies, research institutions, or healthcare organizations to expand its market reach and enhance its product offerings. Revenue can also be influenced by reimbursement policies and the adoption rate of its technologies in the medical community.
OncoCyte Financial Statement Overview
Summary
OncoCyte faces significant financial hurdles. Despite revenue growth, the company remains unprofitable with negative margins. The balance sheet highlights financial instability, with negative equity and a high debt load. Cash flow problems persist, with negative operating and free cash flows. Financial sustainability is a major concern, requiring strategic restructuring or capital infusion.Income Statement
The income statement reveals significant challenges. Despite revenue growth from $1.50M in 2023 to $1.88M in 2024, the company has struggled with profitability, showing consistent net losses, with a net income of -$60.66M in 2024. Gross profit margins have slightly improved but remain low. The EBIT and EBITDA margins are negative, indicating operational inefficiency.20
Very Negative
Balance Sheet
The balance sheet shows financial instability. The company's equity has become negative in 2024, with a debt-to-equity ratio that's not calculable due to negative equity. The equity ratio has significantly deteriorated, and the company has a high level of liabilities relative to assets, indicating financial distress.15
Very Negative
Cash Flow
Cash flow analysis points to severe liquidity issues. Operating cash flow is negative and free cash flow has worsened, showing no signs of improvement. The financing cash flow is positive, indicating reliance on external financing, but the free cash flow to net income ratio suggests cash flow challenges.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.88M | 1.50M | 958.00K | 7.73M | 1.22M | Gross Profit |
| 740.00K | 413.00K | -18.00K | 188.00K | -639.00K | EBIT |
| -61.04M | -25.14M | -18.00M | -46.95M | -29.71M | EBITDA |
| -59.02M | -23.12M | -13.31M | -48.46M | -30.54M | Net Income Common Stockholders |
| -60.66M | -27.78M | -73.44M | -64.10M | -29.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.64M | 9.43M | 20.43M | 36.51M | 7.82M | Total Assets |
| 35.08M | 74.89M | 100.09M | 159.56M | 55.42M | Total Debt |
| 3.66M | 2.87M | 3.54M | 5.68M | 8.63M | Net Debt |
| -4.97M | -6.56M | -16.45M | -29.93M | 1.49M | Total Liabilities |
| 47.35M | 49.30M | 65.80M | 94.35M | 21.94M | Stockholders Equity |
| -12.27M | 25.59M | 34.29M | 65.22M | 33.48M |
| Cash Flow | Free Cash Flow | |||
| -20.71M | -23.61M | -49.91M | -38.19M | -27.21M | Operating Cash Flow |
| -20.71M | -23.32M | -45.57M | -35.94M | -25.98M | Investing Cash Flow |
| -512.00K | -932.00K | -4.34M | -13.96M | -11.75M | Financing Cash Flow |
| 20.43M | 12.19M | 35.81M | 78.36M | 22.80M |
OncoCyte Technical Analysis
Neutral
3.06
Price Trends
2.80
Positive
2.63
Positive
2.84
Positive
Market Momentum
0.07
Positive
45.49
Neutral
25.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCX, the sentiment is Neutral. The current price of 3.06 is below the 20-day moving average (MA) of 3.53, above the 50-day MA of 2.80, and above the 200-day MA of 2.84, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 25.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OCX.
OncoCyte Risk Analysis
OncoCyte disclosed 58 risk factors in its most recent earnings report. OncoCyte reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OncoCyte Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $995.45M | 17.66 | 19.46% | ― | 19.07% | ― | |
55 Neutral | $91.80M | ― | -910.86% | ― | 25.15% | 81.47% | |
55 Neutral | $526.26M | ― | -3.76% | ― | -1.99% | 74.89% | |
53 Neutral | $8.11B | ― | -37.09% | ― | 10.37% | -389.98% | |
51 Neutral | $810.82M | ― | -17.15% | ― | 12.15% | 61.33% | |
51 Neutral | $5.32B | ― | -4584.47% | ― | 31.04% | 16.91% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% |
* Healthcare Sector Average
Performance Comparison
OCX
OncoCyte
3.06
0.08
2.68%
EXAS
Exact Sciences
43.29
-27.12
-38.52%
MYGN
Myriad Genetics
8.87
-12.57
-58.63%
CDNA
CareDx
17.75
7.43
72.00%
FLGT
Fulgent Genetics
16.90
-4.92
-22.55%
GH
Guardant Health
42.60
22.35
110.37%
OncoCyte Earnings Call Summary
Earnings Call Date: Mar 24, 2025 | % Change Since: -8.11% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including the launch of GraftAssure, strategic partnerships, clinical advancements, and financial success. However, there are concerns about potential regulatory delays due to external factors. Despite these challenges, the overall outlook remains positive with expectations of growth and expansion.Highlights
Launch of GraftAssure and Market Expansion
Successfully launched GraftAssure, a research use-only kidney transplant test, with leading transplant centers. The test has expanded the total addressable market by up to 20% and is expected to contribute to meaningful market growth over the next five years.
Strategic Partnership with Bio-Rad Laboratories
Secured a key strategic partner in Bio-Rad Laboratories, which has participated in all three equity funding rounds over the last year. Bio-Rad's support is expected to mitigate expenses and assist in clinical trial and commercialization efforts.
Medicare Claims Expansion and Regulatory Progress
Achieved Medicare claims expansion to monitor high-risk transplant patients and had a positive pre-submission meeting with the FDA, preparing for final submission later this year.
Financial Performance and Fundraising Success
Reported Q4 pharma services revenue of $1.5 million with a gross margin of 40%. Ended the year with $10 million in cash and raised an additional $29 million in February through a clean transaction with no incentive warrants or discounts.
Clinical and Scientific Advancements
Published a groundbreaking study in the New England Journal of Medicine, leading to FDA breakthrough designation for felzartamab. Demonstrated assay's ability to detect organ rejection 11 months ahead of standard protocols.
Strong Team and Operational Efficiency
Strengthened leadership team with new CFO Andrea James and Consulting Chief Medical Officer Dr. Paul Billings. Continued focus on operational efficiency, with outgoing cash flow favorable to targeted spend.
Lowlights
Regulatory Timeline Uncertainties
Potential delays in the FDA review process due to macro uncertainties and staffing changes at the FDA Center for Devices and Radiological Health. Submission timeline for FDA approval has been adjusted to the end of the year.
Variable Pharma Services Revenue
Pharma services revenue expected to be less in the first half of 2025 compared to Q4 2024, as focus shifts to supporting FDA submission and strategic priorities.
Company Guidance
In the recent call, Oncocyte provided a comprehensive update on their progress and future plans, focusing on several key metrics. They highlighted the successful launch of GraftAssure, a kidney transplant test, and its role in improving assay design and user experience. They discussed the upcoming regulatory submissions in the US and Europe, with a projected timeline for FDA approval by mid-2026. The potential expansion of their total addressable market (TAM) by up to 20% was emphasized, supported by a breakthrough designation from the FDA for their assay's role in a study published in the New England Journal of Medicine. Financially, Q4 saw $1.5 million in pharma services revenue with a 40% gross margin, surpassing expectations. Oncocyte also reported cash flow management efforts, with Q4 outgoing cash flow at $5.6 million, and an end-of-year cash balance of $10 million, bolstered by a recent $29 million fundraise. The call concluded with a commitment to sign 20 transplant centers by the end of 2025, aiming for $20 million in future annual recurring revenue.OncoCyte Corporate Events
Executive/Board Changes
OncoCyte Announces Executive Promotions and Compensation Changes
Neutral
Mar 10, 2025
On March 4, 2025, Oncocyte Corporation’s Board of Directors approved salary increases for key executives, effective March 10, 2025, with Joshua Riggs, Andrea James, and Ekkehard Schüetz receiving raises. Additionally, Andrea James was awarded a $25,000 bonus for her contributions since June 2024. On March 9, 2025, the Board also approved substantial RSU grants for these executives, with vesting schedules tied to continued service. Furthermore, James Liu was promoted to Vice President Accounting, Controller, Treasurer, and Principal Accounting Officer, effective March 10, 2025, with a new salary and eligibility for bonuses and RSUs, reflecting his progression within the company since 2021.
Private Placements and FinancingBusiness Operations and Strategy
OncoCyte’s $29.1M Funding Through Securities Agreements
Positive
Feb 10, 2025
On February 7, 2025, Oncocyte Corporation announced the entry into two securities purchase agreements involving a registered direct offering and a private placement, expected to close around February 10, 2025. The transactions are anticipated to generate approximately $29.1 million in gross proceeds, intended to fund the development of Oncocyte’s FDA In-Vitro Diagnostic transplant assay program. Bio-Rad Laboratories, a key strategic partner, participated in the funding round and pledged support for trial and commercialization efforts, highlighting its strategic partnership. The company aims to use the proceeds for general corporate purposes and to advance its mission of improving patient outcomes through innovative diagnostic solutions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.