Nanosphere falls as 2Q results miss estimates

The Northbrook, Ill., ramped up sales efforts for the Verigene test platform, but hospitals and laboratories opted to rent rather than buy, meaning they will pay Nanosphere for the system over an extended period instead of making an upfront purchase.

Nanosphere posted a larger loss than Wall Street expected, and revenue fell far short of expectations. The stock fell $1.10, or 10 percent, to $9.68.

In a client note, Leerink Swann analyst Bruce Cranna said that overall, placements of Verigene are "on track," and the company now has installed 41 systems. He added that cartridge sales were strong, which shows customers are making frequent use of the test once they buy it.

He kept an "Outperform" rating on the stock.

Nanosphere said the launch of a cystic fibrosis test has been delayed, but it will seek government approval soon. Stephens analyst Scott Gleason said clinical trials of the company's other tests are continuing on schedule, and added that Nanosphere has developed a new assay--one that tests for hematomacrosis, or excessive levels of iron in the blood. He said the company will apply for regulatory approval of that test later this year.

Gleason rates the stock "Overweight."