Castle Biosciences Inc. (CSTL) Misses Q3 EPS by 12c

Castle Biosciences Inc. (NASDAQ: CSTL) reported Q3 EPS of ($0.23), $0.12 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $15.2 million versus the consensus estimate of $14.99 million.

“The Castle team made significant progress on our strategic growth initiatives in the third quarter,” said Derek Maetzold, president and chief executive officer of Castle Biosciences. “We also returned to year-over-year volume growth in DecisionDx®-Melanoma report volume, our current lead revenue driver, despite a reduction in melanoma diagnoses, which we believe is due to COVID-19. We are pleased to see, in October, the posting of the expanded local coverage determination (LCD) and accompanying billing and coding article for our DecisionDx-Melanoma test, with an effective date of November 22, 2020.

“As laid out at the beginning of 2020, we planned to launch our two near-term pipeline tests in the second half of the year. We successfully launched DecisionDx®-SCC, our test for patients diagnosed with cutaneous squamous cell carcinoma (SCC) with one or more high-risk factors, on August 31, leveraging our strong, existing dermatologic sales channels. Through October, we have received 282 orders by 193 clinicians for this prognostic test, of which most were existing customers. Additionally, last week we launched our second new test of 2020, DecisionDx® DiffDx™-Melanoma, for use in patients with suspicious pigmented lesions. We estimate that combined, our three commercially available skin cancer products, DecisionDx-Melanoma, DecisionDx-SCC and DecisionDx DiffDx-Melanoma, have a total addressable U.S. market of approximately $2.0 billion.

“We believe evidence development is key to further support clinician adoption and commercial coverage of our tests. During the quarter, we advanced our clinical studies and saw continued progress with publications of peer-reviewed articles.

“As we look ahead to the remainder of 2020 and into 2021, with our team’s continued commitment to improve patient outcomes, we believe we remain well-positioned for long-term growth and value creation.”

For earnings history and earnings-related data on Castle Biosciences Inc. (CSTL) click here.

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