Universal Biosensors slashes 1H loss in half

Universal Biosensors (ASX:UBI) more than halved its losses for the first half of 2012, on the back of a 133% increase in revenue.

The medical diagnostics company reported a net loss for the half-year of $3.4 million, from $7.9 million in 1H11.

Revenue grew to $14.7 million. Total service fees collected surged 402% to $1 million, in a result attributed to sales of the company's blood glucose test OneTouch Verio by its partner, Johnson & Johnson subsidiary LifeScan. The strips are currently being rolled out globally.

Universal Biosensors is entitled to a roughly $0.01 service fee for every test strip sold, on top of revenue from manufacture of the strips.

Product revenue for the six months meanwhile grew 69% to $9.5 million, due to record manufacturing activities at the company's Victorian plant.

CEO Paul Wright called the sales figures “encouraging.” He said the numbers “underline the company's transition from an R&D operation to a commercial enterprise.”

The company has also been engaged by Siemens Healthcare to develop test strips for a line of handheld analysers for the point-of-care coagulation testing market.

Universal Biosensors has so far received $6 million in upfront and milestone payments from this deal, including $4.5 million in the first half. The contract stipulates four further milestone payments over the life of the collaboration.

Universal Biosensors is also involved in a 12-month, $4.5 million R&D program with LifeScan, which is due to wrap up in September.

These engagements led to a 14% increase in R&D costs during 1H12 to $5.4 million, but the company shaved its general expenses by 4%.

Universal Biosensors (ASX:UBI) shares grew 3.45% on Monday, and were trading unchanged at $0.600 as of around 2pm on Tuesday.