HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) Q3 2019 Earnings Conference Call - Final Transcript
Nov 12, 2019 • 04:30 pm ET
Greetings, and welcome to the HTG Molecular Diagnostics Incorporated Third Quarter 2019 Earnings Call. [Operator Instructions]. I will now turn the conference over to your host, Monique Kosse, LifeSci Advisors. Please go ahead, ma'am.
Thank you, Jerry. Earlier today, HTG released its financial results for the quarter ended September 30, 2019. Before we begin the call, let me remind you that the company's remarks include forward-looking statements within the meaning of the federal security laws, including statements regarding possible additional collaborations with pharma customers; anticipated continued growth in RUO profiling business and related revenue, expected growth in and benefit from pharma programs and collaborations, product development and commercialization activities, revenue expectations for the full year
2019 and projects expected to occur in 2020.
These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond HTG's control that may cause HTG's actual circumstances, events or results to differ materially from those projected on today's call. Factors that could cause events or results to differ materially include those risks and uncertainties described from time to time in HTG's SEC filings. HTG cautions listeners not to place undue reliance on any forward-looking statements. HTG is providing this information as of the date of this call, and HTG undertakes no obligation to update any forward-looking statement.
With that, I would like to turn the call over to John Lubniewski, Chief Executive Officer. John?
John L. Lubniewski
Thank you, Monique. Good afternoon, everyone, and thank you for joining us on our third quarter conference call. It has been another extremely busy quarter, and it's a pleasure to be here today to report to you on our business results and provide you an update on the progress we're making on building a precision medicine company.
So first, some high-level numbers. Total revenues this quarter were $5.4 million and $14.4 million during the first nine months of the year. Breaking it down a little bit, we saw very strong performance from our product and product-related services business, which grew 228% over the third quarter last year. We see strength and continued market share expansion into the RNA profiling market, which is really driven by biopharma and academic researchers who are using our products to better understand mechanisms of disease, mechanism of action for drugs and of development of molecular subtypes for potential differential treatment.
Biopharma remains our most important market, but we're also seeing growth in the academic market as well. Our European market is contributing and strengthening now that we filled several open sales territories. However, across our RUO profiling business, we have recently had a couple of key projects slip from expected fourth quarter execution into early 2020. Our profiling business is based on our highly differentiated EdgeSeq technology, which is very sample sparing, improves traditional EdgeSeq workflows, multiplexes into the thousands and enable simplified bioinformatics. We're leveraging these advantages into a $1.2 billion RNA profiling market, which is projected to grow at double digits. We believe we are demonstrating that HTG can build