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Boost for MDxHealth’s Urology Diagnostics Tests

MDxHealth SA, a maker of noninvasive urology tests used to diagnose prostate cancer that’s struggled to gain traction as a public company (Nasdaq: MDXH), looks closer to turning an important corner.

The company, which has its headquarters in Irvine and also a base in Belgium, on May 15 reported first-quarter sales jumped 141% to $14.7 million, easily topping the average analyst estimate for $13.4 million. It also reported a loss of 5 cents, also beating the 32-cent loss expected by analysts.

The shares reacted favorably, climbing 14% in the session after the report.

“MDXH is emerging as a one-stop shop in urology diagnostics testing,” BTIG analyst Mark Massaro wrote in a note to investors. The company “is forging ahead with (1) significant gross margin expansion; and strong topline growth driven by (2) its organic developed test menu; and (3) its recently acquired, higher-margin Oncotype GPS test.”

William Blair analyst Andrew Brackmann added in his note, “We see these results as a positive and believe the team should be able to expand the stock’s multiple by executing on targets as it did this quarter.”

It’s a notable change since last February, when the company’s stock dropped 35% in one day, after the company revealed a $40 million offering of American Depositary Shares at $4 each. By March, the stock hit its lowest price ever of $2.47 a share.

In its most recent report, the company reiterated its 2023 forecast for sales of $65 million to $70 million, implying growth of 75% to 88%. The average of four analysts is for 2023 sales of $65 million.

Massaro hinted the company should be able to beat its 2023 forecast.

“We expect the year to be more 2H-loaded though there are real drivers to accomplish this,” he wrote in his note.

At press time, the stock hovered around $3.95 and a $107 million market cap.

In late 2021, MDxHealth raised around $45 million in an initial public offering that priced each share at $12.


Prostate cancer is the second deadliest form of cancer in men. Approximately 25 million prostate specific antigen (PSA) tests are performed each year, for which 3 million men, or 15%, are informed of their heightened risk for prostate cancer.

The typical way to diagnose prostate cancer is a procedure that uses a biopsy needle, which can have side effects like bleeding, infection, sepsis and urinary retention.

By contrast, MDxHealth’s noninvasive test uses a urine sample that measures the mRNA levels of two biomarker genes and combines that information with data such as age and prostate size to give each patient with a personalized cancer risk profile, which the company says provides more accurate information than the typical exams.

Test Aid

The first-quarter results were greatly aided by the acquisition last August from Madison, Wis.-based Exact Sciences Corp. of a cancer unit that has a test called the Oncotype DX Genomic Prostate Score.

The company forecasted sales this year are a sixfold increase from $11.8 million in 2019 when Michael McGarrity became the company’s chief executive.

“2022 was a transformative year for MDxHealth and we are confident that our first-quarter results reflect this transformation,” McGarrity told analysts on a conference call.

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