A growing number of medical tests and services have paid off for Clarient Inc.
The Aliso Viejo-based company, which provides cancer testing for pathologists, oncologists and drug makers, ranks No. 9 on the Business Journal’s annual list of fastest-growing public companies based here.
Clarient’s revenue grew 75% for the three years through June 30. It went from $57 million in revenue for the 12 months through June 2008 to $100 million for the same period through this year.
“I’m very excited about where we are today,” Chief Executive Ron Andrews said at a recent investor conference put on by San Diego-based California Equity Research LLC. “We’ve still got a lot of revenue opportunity in our base business,” he said.
Clarient is working to speed up the pace of introducing tests to customers.
Breast Cancer Test
The company is working on Mammostrat, which can be used to predict breast cancer. The test is expected to be released in December at the San Antonio Breast Conference after Clarient gets reimbursement status for it, Andrews said at the conference.
Andrews called Mammostrat an “extremely powerful tool.”
“With a sizable sales channel established, the next phase of (Clarient’s) growth strategy will be fueled by the introduction of novel proprietary tests,” said Matt Dolan, an analyst who follows Clarient for Newport Beach-based Roth Capital Partners LLC. “This should further differentiate the company.”
Clarient’s also made some deals for growth. In late 2009 it spent $18 million to buy what Andrews has called “an amazing little company” called Applied Genomics, which is based in Huntsville, Ala.
Applied Genomics makes testing chemicals to help diagnose cancer, including breast and lung cancer. The deal gave Clarient Pulmotype, a lung cancer diagnostic test that was launched in February, as well as tests that are under development.
Stock
Clarient has held its own on Wall Street.
Through late September, the company’s stock was up about 22% from the start of 2010 with a recent market value of roughly $300 million.
Clarient posted a profit of $942,000, surpassing Wall Street’s expectations of a break-even quarter.
Overall Clarient lost $5.4 million in the 12 months through June 30.
Company officials noted that billing and collections, which have been challenging in the past, improved during the period.
History
Clarient was founded in 1993 as ChromaVision Medical Systems Inc. ChromaVision made laboratory instruments that doctors used to help manage breast cancer cases.
The company came close to running out of money at the end of 2003, which led to the business shift, Andrews said.
Clarient’s been in its current Aliso Viejo corporate headquarters for four years. The company has 373 workers, 331 of whom work out of OC.
THE NUMBERS
Three-year growth: 75%
12-month revenue through June: $100 million
Yearly loss through June: $5.4 million
Market value: $300 million
Employees: 373, 331 in OC
Company: cancer testing
