Interpace Biosciences Reports 13% Revenue Growth to $11.5 Million in Q1 2025

Interpace Biosciences, Inc. reported a net revenue of $11.5 million for the first quarter of 2025, marking a 13% increase from $10.2 million in the same period of 2024. The company's gross profit also rose to approximately $7.4 million, up from $6.3 million, resulting in a gross profit margin of 64% compared to 62% in the prior year. Operating income from continuing operations was $1.8 million, significantly higher than $1.1 million reported in the first quarter of 2024. The net income for the quarter was $1.6 million, or $0.37 per basic share, compared to $0.7 million, or $0.16 per basic share, in the previous year.

The financial performance reflects a strategic focus on increasing test volumes, which contributed to the revenue growth. However, the company is facing challenges due to the loss of Medicare coverage for its PancraGEN® test, which was finalized on April 24, 2025. This decision has prompted Interpace to implement a restructuring plan aimed at reducing operating costs and aligning its workforce with the anticipated impact of this loss. The restructuring is expected to incur costs between $0.5 million and $0.6 million, in addition to $0.2 million already recorded in the first quarter.

As of March 31, 2025, Interpace had total current assets of $11.7 million and current liabilities of $8.7 million, resulting in a current ratio of approximately 1.34. The company reported cash and cash equivalents of $1.2 million, down from $1.5 million at the end of 2024. The decrease in cash was primarily due to payments made on the term loan, which amounted to $1.5 million during the quarter. The company continues to explore various funding options to enhance liquidity, including potential equity and debt financing.

Operationally, Interpace has maintained a focus on its core offerings, which include molecular diagnostic tests aimed at cancer risk evaluation. The company currently markets three primary tests: ThyGeNEXT®, ThyraMIR®v2, and RespriDx®. Despite the challenges posed by the loss of coverage for PancraGEN®, the company anticipates that its existing cash reserves and projected cash receipts will be sufficient to meet its operational needs over the next twelve months.

Looking ahead, Interpace is committed to navigating the impacts of the recent changes in Medicare coverage while continuing to enhance its product offerings and operational efficiency. The company aims to complete the restructuring plan by the end of the second quarter of 2025, positioning itself for future growth despite the current challenges in the healthcare reimbursement landscape.