Key Points
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Q3 revenue reached $183.5 million, largely due to $180 million in revenue recognized after FDA approval of SimpleScreen CRC under the Abbott agreement. Freenome reported net income of $60.1 million and ended September with about $430 million in cash and marketable securities, which it expects to fund operations into 2028.
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Abbott began marketing SimpleScreen CRC on Sept. 30, and more than 2,000 clinical sites requested blood collection kits in the first month. Freenome expects little testing revenue or royalties in Q4 and is not yet providing volume guidance; it forecast Q4 revenue of $2 million to $4 million.
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Freenome plans to submit its improved second-generation CRC test by year-end and is advancing lung and multi-cancer screening programs. The updated CRC test improved detection of advanced precancerous lesions, while the company expects data from additional tests through 2027.
Freenome (NASDAQ:FRNM) reported third-quarter revenue of $183.5 million, driven largely by revenue recognition following the U.S. Food and Drug Administration’s approval of its blood-based colorectal cancer screening test. The company said it does not expect meaningful testing revenue or royalties in the fourth quarter as its commercial launch gets underway.
On Freenome’s first earnings call as a public company, Chief Executive Officer Aaron Elliott said Abbott began marketing and selling SimpleScreen CRC on Sept. 30. More than 2,000 clinical sites requested blood collection kits in the first 30 days, he said, although the company did not provide test volume guidance.
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“It is too early to really provide any specific volume guidance,” Elliott said. He added that Freenome and Abbott are working on commercial metrics to track the launch and expect to provide a better update on the next earnings call.
Results reflect Abbott agreement
Third-quarter revenue rose from $1 million a year earlier. License and collaboration revenue totaled $182.5 million, including $180 million recognized following FDA approval of SimpleScreen CRC under Freenome’s agreement with Abbott, Chief Financial Officer Linh Le said.
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That $180 million included $157.5 million for an exclusive commercialization license and a $22.5 million cumulative catch-up adjustment to revenue recognized in earlier periods. Separately, Freenome received a $100 million Abbott milestone payment for the test’s approval, which was included in third-quarter free cash flow.
