Interpace Biosciences Reports 23% Revenue Decline in Q2 2025 Due to Medicare Reimbursement Loss

Interpace Biosciences, Inc. reported a significant decline in financial performance for the second quarter of 2025, with net revenue decreasing by 23% to $9.2 million compared to $12.0 million in the same period of 2024. For the first half of 2025, revenue totaled $20.7 million, down 7% from $22.2 million in the prior year. The company attributed this decline primarily to the loss of Medicare reimbursement for its PancraGEN® test, which ceased on April 24, 2025, leading to a halt in accepting specimens for this test after May 2, 2025. The gross profit for the second quarter was approximately $5.3 million, down from $7.8 million a year earlier, reflecting a gross profit margin of 57.1%.

Operating expenses for the second quarter increased to $5.7 million, up from $5.2 million in the previous year, largely due to severance costs associated with the restructuring plan implemented in response to the loss of PancraGEN® reimbursement. The company reported an operating loss of $0.5 million for the quarter, a stark contrast to the operating income of $2.6 million recorded in the same quarter of 2024. For the first half of 2025, operating income was $1.4 million, down from $3.7 million in the prior year. The net loss for the second quarter was $640,000, compared to a net income of $2.4 million in the same period last year.

In terms of strategic developments, Interpace has undertaken a restructuring plan to align its workforce with the loss of PancraGEN® revenue, incurring approximately $0.7 million in severance and related costs during the first half of 2025. The company continues to explore various strategic alternatives, including potential equity and debt financing, to enhance liquidity. As of June 30, 2025, Interpace had cash and cash equivalents of $0.5 million and total current assets of $9.5 million, with current liabilities amounting to $7.1 million.

Operationally, the company has faced challenges due to the loss of reimbursement coverage, which has impacted its ability to generate revenue from its clinical services. The restructuring plan has led to a reduction in workforce, and the company is focused on improving margins and managing costs. Despite these challenges, Interpace anticipates that its current cash reserves and projected cash receipts will be sufficient to meet its operational needs over the next twelve months.

Looking ahead, Interpace's management remains cautious about the future, given the ongoing impact of regulatory changes on its business model. The company is actively seeking to stabilize its financial position while navigating the complexities of the healthcare reimbursement landscape. The outlook remains uncertain, with the potential for further adjustments in strategy as market conditions evolve.