Renalytix reports narrowed net loss amid cost reductions, shares dip

Shares in Renalytix, the London-based kidney health diagnostics company, dipped by 1.7% to 86.00 pence per share in Friday afternoon trading in London. This decline came in response to the company’s announcement that its net loss for the three months ended March 30 narrowed amid cuts in administrative costs.

Renalytix disclosed that its pretax net loss for the third quarter of the financial year 2023 improved to $12.1 million, a reduction from the previous year’s figure of $14.7 million. The company achieved this positive outcome by implementing an 11% reduction in general and administrative expenses, which amounted to $7.1 million.

While Renalytix successfully curbed its losses, its revenue experienced an 11% decline from $812,000 to $724,000 compared to the previous year. This decrease is partly due to the company’s KidneyIntelX test, which is used for assessing individuals with type two diabetes and chronic kidney disease. The transition to commercial payments for testing in collaboration with Mount Sinai Healthcare temporarily impacted the testing volumes, thus affecting the revenue.

Looking forward, the company aims to strengthen its balance sheet by securing new funding and says it is committed to continuing collaboration with the US Food & Drug Administration in evaluating the marketing application for KidneyIntelX.