10x Genomics Provides COVID-19 Business Impact Update and Response
April 09 2020 - 4:03PM
10x Genomics (Nasdaq: TXG), today provided an update on the actions
it is taking to focus its business operations to support critical
research in response to the coronavirus (COVID-19) pandemic as well
as the financial impact.
- Supporting COVID-19
Research. During this pandemic, we moved quickly to place
instruments and to provide reagents to clinicians and researchers
around the world working on understanding COVID-19 and developing
cures for the disease. 10x’s products are a critical tool for
infectious disease research because they allow the detailed
understanding of how the virus impacts infected people, how the
immune system is mobilized, which immune cells react to pathogens
and many other aspects of the disease and potential therapies. Many
researchers have moved our Chromium Controller instruments into a
Biosafety Level 3 (BSL3) facility, where they can be as close as
possible to the front lines of this battle against COVID-19.
- Protecting Our
Employees. 10x has been designated an essential business
that can continue necessary operations during the COVID-19
outbreak. In early March, we promptly instituted protocols to have
many personnel work remotely. At the same time, we have
employees who are continuing to support essential operations to
provide critical products to researchers and who are continuing
important research and development functions. For those
employees, we have implemented strict social distancing and other
protective measures in order to ensure their health and
safety. We have also restricted business travel and have
closed our campus and other facilities to outside visitors.
- Product Supply and Customer
Support. Our production, shipping and customer service
functions remain operational to ensure we maintain a continuous
supply of products to our customers. We are communicating
regularly with our suppliers so that our supply chain remains
intact and we have not yet experienced any supply issues. Our
customer service teams around the world are operating remotely and
remain available to assist our customers and partners as
needed.
- Reviewing Operating
Expenses. In light of the current situation, we are
actively reviewing and managing all costs to navigate the current
environment, and to allow 10x to remain in a strong financial and
operating position until the pandemic is brought under
control.
“Our two most critical priorities right now are
to ensure the health and safety of our employees and to provide our
customers with the solutions they need to fight COVID-19,” said
Serge Saxonov, co-founder and CEO of 10x Genomics. “While none of
us have seen a pandemic like this in our lifetimes, we have also
never seen so much of the global scientific community focused with
so much intensity on a single goal. Our products are an
important part of the arsenal to combat COVID-19, and we will do
all we can to help our customers until the pandemic is under
control.”
Preliminary First Quarter 2020 Revenue
Revenue for the first quarter of 2020 is
expected to be in the range of $71 to $72 million, an increase of
33% at the midpoint over the prior year period. As the pandemic
spread from China to countries worldwide, the company saw a
significant reduction in customer activity other than research
related to the virus. Social distancing and stay-at-home
orders have temporarily closed many academic and government
labs.
Liquidity Update
The company currently believes that its existing
cash position, along with cash generated from sales of its
products, will be sufficient to meet its anticipated cash needs for
the foreseeable future.
Update on Full Year 2020 Outlook
Given the ongoing uncertainty of the scope,
duration and impact of the pandemic, 10x is currently unable to
reasonably estimate its financial performance and is withdrawing
its previously announced annual revenue guidance for 2020, which
was issued on February 18, 2020.
The company plans to provide final financial
results and additional information related to the impact of
COVID-19 on its upcoming earnings call, which is expected to be in
early May.
About 10x Genomics
10x Genomics is a life science technology
company building products to interrogate, understand and master
biology to advance human health. The company’s integrated solutions
include instruments, consumables and software for analyzing
biological systems at a resolution and scale that matches the
complexity of biology. 10x Genomics products have been adopted by
researchers around the world including 97 of the top 100 global
research institutions and 19 of the top 20 global pharmaceutical
companies, and have been cited in over 700 research papers on
discoveries ranging from oncology to immunology and neuroscience.
The company's patent portfolio comprises more than 700 issued
patents and patent applications.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 as contained in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as “may,” “will,” “should,”
“expect,” “plan,” “anticipate,” “could,” “intend,” “target,”
“project” “contemplate,” “believe,” “estimate,” “predict,”
“potential” or “continue” or the negatives of these terms or
variations of them or similar terminology. These forward-looking
statements include statements regarding 10x Genomics, Inc.’s
expectations regarding its preliminary revenue estimates for the
quarter ended March 31, 2020, the company’s ability to meet its
anticipated cash needs for the foreseeable future and the potential
impact of the COVID-19 outbreak on the company’s business
operations, financial performance and results of operations, which
involve risks and uncertainties that could cause 10x Genomics,
Inc.’s actual results to differ materially from the anticipated
results and expectations expressed in these forward-looking
statements. These statements are based on management’s current
expectations, forecasts, beliefs, assumptions and information
currently available to management, and actual outcomes and results
could differ materially from these statements due to a number of
factors. These and additional risks and uncertainties that could
affect 10x Genomics, Inc.’s financial and operating results
and cause actual results to differ materially from those indicated
by the forward-looking statements made in this press release
include those discussed under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and elsewhere in the documents
10x Genomics, Inc. files with the Securities and Exchange
Commission from time to time. The forward-looking statements in
this press release are based on information available to
10x Genomics, Inc. as of the date hereof, and
10x Genomics, Inc. disclaims any obligation to update any
forward-looking statements provided to reflect any change in its
expectations or any change in events, conditions, or circumstances
on which any such statement is based, except as required by law.
These forward-looking statements should not be relied upon as
representing 10x Genomics, Inc.’s views as of any date
subsequent to the date of this press release.
Disclosure Information10x
Genomics uses filings with the Securities and Exchange
Commission, its website (www.10xgenomics.com), press releases,
public conference calls, public webcasts and its social media
accounts as means of disclosing material non-public information and
for complying with its disclosure obligations under Regulation
FD.
ContactsInvestors:investors@10xgenomics.com
Media:media@10xgenomics.com
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