Oncocyte Corporation (Nasdaq: OCX) is making significant strides in commercializing its transplant rejection testing technology, particularly with its GraftAssure research-use-only (RUO) assay. The company reported that transplant centers representing approximately 9% of German transplant volumes and 2% of U.S. transplant volumes have adopted GraftAssure in its early launch phase. This progress aligns with Oncocyte's strategic goal to sign 20 transplant centers by the end of 2025.
Commercial Expansion and Strategic Partnerships
Oncocyte's GraftAssure assay, designed to detect early evidence of graft organ damage, has garnered considerable international interest. The company attributes this success to its robust research partnerships in Europe and its scientific leadership in researching donor-derived cell-free DNA (dd-cfDNA) biomarkers. The company's customers in Germany now represent about 9% of the country’s annual organ transplant volumes.
In the U.S., hospitals representing about 2% of overall organ transplant volumes have signed up to use GraftAssure. The company also reported significant engagement from the transplant lab community at the American Society for Histocompatibility & Immunogenetics (ASHI) conference in October.
Regulatory Pathway and Clinical Validation
Oncocyte is actively pursuing FDA clearance for its VitaGraft+ kitted test, which is based on the same underlying IP as GraftAssure. The company has submitted a Q-Sub to the FDA and has begun productive dialogue with the agency, with a meeting scheduled for early December. The IVD development process is underway, with the goal of obtaining regulatory clearance for clinical use.
Several hospitals have expressed interest in supporting the FDA submission process, with six hospitals or clinics interested in participating in a clinical observational study and four institutions interested in participating in a reproducibility study.
Scientific Advancements and Clinical Utility
Recent publications have highlighted the clinical value of dd-cfDNA monitoring. A review published in Transplant International concluded that dd-cfDNA is a valuable, non-invasive biomarker that enhances graft surveillance and personalized therapy for patients with antibody-mediated rejection (AMR). Additionally, a case series demonstrated the potential of using repeated VitaGraft Kidney measurements to monitor the efficacy of targeted therapies for AMR.
In May 2024, The New England Journal of Medicine published a phase 2 randomized controlled trial in which VitaGraft Kidney was used to measure the response to the drug felzartamab for patients with AMR after kidney transplantation. Notably, in October, felzartamab received Breakthrough Therapy Designation (BTD) from the FDA for the treatment of late AMR in kidney transplant patients.
Financial Position
Oncocyte reported revenue of $115,000 in the third quarter of 2024, derived from pharma services performed at its clinical laboratory in Nashville. The company's cash, cash equivalents, and restricted cash balance at the end of the third quarter was approximately $5.1 million. On October 2, 2024, Oncocyte entered into a securities purchase agreement for a private placement, generating net proceeds of approximately $9.4 million.
Strategic Outlook
Oncocyte is focused on commercializing its transplant tests and expanding the utility of dd-cfDNA. The company aims to democratize testing through FDA-cleared VitaGraft+ kits, enabling labs to serve patients more quickly and generate revenue for the hospital. Oncocyte is also making progress in oncology, with a recent publication of positive data related to its DetermaIO immuno-oncology assay, which predicted response to the drug atezolizumab in a phase 2 clinical trial for breast cancer.
