Oncocyte Implements Cost Reduction Initiatives, Realigns Operations

Oncocyte Corporation OCX said that it is realigning its operations and implementing cost reduction programs to prioritize near-term revenue generators and better manage and preserve its cash.
The company will reduce its workforce, which is expected to decrease its operating costs by more than $4.5 million annually.
Layoffs started on August 8 and are set to be completed by September 30, the company said in an SEC filing.
Oncocyte added that through reprioritization efforts, strategic activities, and headcount reduction, operating costs are expected to be trimmed by about $12 million in 2023 compared to 2022.
Oncocyte's Q2 revenues rose 5% Y/Y to $2.1 million, falling short of the consensus Wall Street estimate of $2.7 million.
It received a $1 million milestone payment during Q2 from the final delivery of the DetermaRx lung cancer test to its Chinese partner Burning Rock.
The company posted an EPS loss of $(0.07) compared to a net loss of $(0.12) a year ago.
The company ended Q2 with $47.1 million in cash, cash equivalents, restricted cash, and marketable securities.
Price Action: OCX shares traded 4.11% higher at $0.99 on press time Thursday.