AnPac Bio 2021 First Half Revenue Up 128.5% with Non-GAAP Loss Reduced by 18.3%
October 01 2021 - 7:30AM
AnPac Bio-Medical Science Co., Ltd. (“AnPac Bio,” the “Company” or
“we”) (NASDAQ: ANPC), a biotechnology company with operations in
China and the United States, announced today its unaudited
financial results for the six months ended June 30, 2021.
Financial highlights:
- Total revenues were approximately
RMB9.3 million (US$1.4 million) for the six months ended June 30,
2021, representing an increase of 128.5% from approximately RMB4.1
million for the six months ended June 30, 2020.
- Gross profit margin was
approximately 61.4% for the six months ended June 30, 2021,
representing an increase of 16.1 percentage points from
approximately 45.3% for the six months ended June 30, 2020,
primarily due to higher selling prices charged for cancer
differentiation analysis (“CDA”)-based tests and improved
operational efficiency with higher volume of CDA-based tests
performed during the six months ended June 30, 2021.
- The average selling price (“ASP”)
of CDA-based tests was RMB457 (US$71) for the six months ended June
30, 2021, an increase of RMB125, or 38%, from RMB331 in the same
period of 2020, primarily due to a broader product offering of more
comprehensive multi-cancer detection tests at higher price
points.
- Net loss was approximately RMB57.7
million (US$8.9 million) for the six months ended June 30, 2021,
compared to a net loss of approximately RMB56.1 million for the six
months ended June 30, 2020. The net loss for the six months ended
June 30, 2021 was mainly attributable to approximately RMB4.3
million (US$0.7 million) loss in change in the fair value of
convertible debt, approximately RMB10.8 million (US$1.7 million)
selling and marketing expenses, RMB5.6 million (US$0.9 million)
research and development expenses and approximately RMB41.6 million
(US$6.4 million) general and administrative expenses.
- Non-GAAP net loss1 was
approximately RMB37.4 million (US$5.8 million) for the six months
ended June 30, 2021, reduced from a non-GAAP net loss of
approximately RMB45.8 million for the six months ended June 30,
2020. Non-GAAP net loss was reduced by 18.3% compared with the six
months ended June 30, 2020.
- Short-term debt was approximately
RMB11.7 million (US$1.8 million) as of June 30, 2021, representing
an increase of 41.8% from approximately RMB8.2 million as of
December 31, 2020. The increase in short-term debt was mainly due
to issuance of an additional convertible debentures.
- Non-GAAP net loss is defined as net
loss excluding change in fair value of convertible debts and
stock-based compensation. For more information, refer to “Use of
Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP
Results” at the end of this press release.
Business Highlights:
- The Company continued to receive
validation on the efficacy of CDA testing through clinical study
follow-ups. As of June 30, 2021, AnPac Bio had contacted 23,884
individuals tested using CDA packages in China and received
substantive feedback regarding health conditions and disease
development from 14,256 individuals.
- Completed development and
evaluation of a second-generation cancer detection sensor with
improvements in multiple areas including reduced device cost,
improved signal stability, cancer detection sensitivity and
specificity.
- Launched a joint venture to focus
on a novel cancer treatment technology and medical device
development which leverages AnPac Bio’s deep and extensive
knowledge and experience in biophysics and its correlations with
cancer occurrence and cancer detection.
- As of June 30, 2021, the
Company filed 247 patent applications globally, among which 148
patents had been granted, including 20 patents granted in the
United States, 66 in greater China (including eight in Taiwan), and
62 in other countries and regions.
- The Company continued to build a
cancer risk assessment database, which totaled approximately
237,000 samples as of June 30, 2021, including approximately
193,100 samples from commercial CDA-based tests and approximately
43,900 samples from research studies.
Dr. Chris Yu, AnPac Bio’s Chairman and CEO
commented: “We are very pleased with the significant increases in
our revenue and commercial cancer testing volume in the first half
year, which are strong indications that AnPac Bio’s technology,
services and quality are being recognized by the market and gaining
traction. Overall, our company is heading in the right direction.
We have successfully reduced our non-GAAP loss by 18.3% compared
with the same period in 2020 (after excluding stock option and
share related compensation and one-time items) and significantly
growing our revenue. In addition, we continue to make progress in
our research and development with the launch of our
second-generation cancer detection sensor with improved
performance, as well as starting a novel cancer treatment project.
Our CDA technology is continuing to show exciting results in our
on-going follow-up study in general population multi-cancer risk
assessment tests. We are fully committed to innovating and
developing new products and technologies and working closely with
customers to achieve continued growth.”
Use of Non-GAAP Financial
Measures
Non-GAAP net loss is
calculated as net income adjusted for change in fair value of
convertible debts and stock-based compensation expense. The
non-GAAP financial measures are presented to enhance investors’
overall understanding of the Company’s financial performance and
should not be considered a substitute for, or superior to, the
financial information prepared and presented in accordance with
U.S. GAAP. Investors are encouraged to review the reconciliation of
the historical non-GAAP financial measures to its most directly
comparable GAAP financial measures. As non-GAAP financial measures
have material limitations as analytical metrics and may not be
calculated in the same manner by all companies, they may not be
comparable to other similarly titled measures used by other
companies. In light of the foregoing limitations, you should not
consider non-GAAP financial measures as a substitute for, or
superior to, such metrics in accordance with US GAAP.
Reconciliations
of Non-GAAP Results
Reconciliations of
Non-GAAP net loss
(All amounts in
thousands, except share and per share data or otherwise stated)
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For the six months ended |
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|
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June 30, |
|
|
June 30, |
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|
June 30, |
|
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(56,077 |
) |
|
|
|
(57,689 |
) |
|
|
|
(8,937 |
) |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of convertible debts |
|
|
(7,289 |
) |
|
|
|
4,346 |
|
|
|
|
673 |
|
|
Stock based compensation expense |
|
|
17,548 |
|
|
|
|
15,897 |
|
|
|
|
2,462 |
|
|
Non-GAAP net loss |
|
|
(45,818 |
) |
|
|
|
(37,446 |
) |
|
|
|
(5,802 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About AnPac
Bio
AnPac Bio is a biotechnology company focused on
early cancer screening and detection, with 142 issued patents as of
March 31, 2021. With two certified clinical laboratories in China
and one CLIA and CAP accredited clinical laboratory and one CLIA
registered clinical laboratory in the United States, AnPac Bio
performs a suite of cancer screening and detection tests, including
CDA (Cancer Differentiation Analysis), bio-chemical, immunological,
and genomics tests. According to Frost & Sullivan, AnPac Bio
ranked third worldwide among companies offering next-generation
early cancer screening and detection technologies in terms of the
number of clinical samples for cancer screening and detection,
based on approximately 43,900 clinical samples as of March 31,
2021. AnPac Bio’s CDA technology platform has been shown in
retrospective validation studies to be able to detect the risk of
over 20 different cancer types with high sensitivity and
specificity.
For more information,
please visit: https://www.AnPacBio.com/.
For investor and
media inquiries, please contact:
Company:Phil Case,
Marketing and Investor RelationsPhone: +1-267-810-6776
(US)Email: phil_case@AnPacbio.com
Investor Relations:Ascent
Investor Relations LLCTina Xiao, PresidentPhone: +1-917-609-0333
(US)Email: tina.xiao@ascent-ir.com
Safe Harbor Statement
This announcement contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are made under the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995
and are relating to the Company’s future financial and operating
performance. The Company has attempted to identify forward-looking
statements by terminologies including “believes,” “estimates,”
“anticipates,” “expects,” “plans,” “projects,” “intends,”
“potential,” “target,” “aim,” “predict,” “outlook,” “seek,” “goal”
“objective,” “assume,” “contemplate,” “continue,” “positioned,”
“forecast,” “likely,” “may,” “could,” “might,” “will,” “should,”
“approximately” or other words that convey uncertainty of future
events or outcomes to identify these forward-looking statements.
These statements are based on current expectations, assumptions and
uncertainties involving judgments about, among other things, future
economic, competitive and market conditions and future business
decisions, all of which are difficult or impossible to predict
accurately and many of which are beyond the Company’s control.
These statements also involve known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results to be materially different from those expressed or implied
by any forward-looking statement. Known and unknown risks,
uncertainties and other factors include, but are not limited to,
the implementation of our business model and growth strategies;
trends and competition in the cancer screening and detection
market; our expectations regarding demand for and market acceptance
of our cancer screening and detection tests and our ability to
expand our customer base; our ability to obtain and maintain
intellectual property protections for our CDA technology and our
continued research and development to keep pace with technology
developments; our ability to obtain and maintain regulatory
approvals from the NMPA, the FDA and the relevant U.S. states and
have our laboratories certified or accredited by authorities
including the CLIA; our future business development, financial
condition and results of operations and our ability to obtain
financing cost-effectively; potential changes of government
regulations; general economic and business conditions in China and
elsewhere; our ability to hire and maintain key personnel; our
relationship with our major business partners and customers; and
the duration of the coronavirus outbreaks and their potential
adverse impact on the economic conditions and financial markets and
our business and financial performance, such as resulting from
reduced commercial activities due to quarantines and travel
restrictions instituted by China, the U.S. and many other countries
around the world to contain the spread of the virus. Additionally,
all forward-looking statements are subject to the “Risk Factors”
detailed from time to time in the Company’s most recent Annual
Report on Form 20-F and other filings with the U.S. Securities and
Exchange Commission. Because of these and other risks,
uncertainties and assumptions, undue reliance should not be placed
on these forward-looking statements. In addition, these statements
speak only as of the date of this press release and, except as may
be required by law, the Company undertakes no obligation to revise
or update publicly any forward-looking statements for any
reason.
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