Codex DNA Reports Fourth Quarter and Full Year 2021 Financial Results and Provides 2022 Guidance
March 22 2022 - 4:05PM
Codex DNA, Inc. (Nasdaq: DNAY), a pioneer in automated benchtop
synthetic biology systems, today reported financial results for the
fourth quarter and year ended December 31, 2021 and provided
financial guidance for 2022.
“Codex DNA’s first year as a publicly traded company was
successful and productive, as we achieved significant financial and
operational objectives,” said Todd R. Nelson, PhD, CEO of Codex
DNA. “We also took a number of critical steps in the fourth quarter
to lay the foundation for the next phase of our growth, which
included signing a substantial early access collaboration and
licensing agreement with Pfizer, closing a highly strategic
acquisition of Eton Bioscience and achieving outstanding progress
in our innovative enzymatic DNA synthesis program. I am grateful
for the incredible efforts of our entire team who is working
tirelessly to deliver on our commitments to drive long-term growth
and create value for all stakeholders.”
Recent HighlightsContinued to execute in all
areas of our growth strategy:
- Increased total revenue by 59% over prior year period
- Signed early access collaboration and licensing agreement with
Pfizer for SOLA enzymatic DNA synthesis technology
- Expanded catalog of COVID-19 tools with release of full-length
synthetic genome for SARS-CoV-2 Omicron Variant, which can be used
by researchers in development of therapies, vaccines and new
diagnostics to help in the fight against the COVID-19 pandemic
- Announced collaboration with RNAimmune to optimize future mRNA
synthesis and delivery kits
- Closed the acquisition of Eton Bioscience
Progressed in our research and development programs:
- Achieved important milestones in our SOLA enzymatic DNA
synthesis program, including synthesis of full length H1 and N1
genes from the Influenza A virus, which are approximately 1,800
base pairs (bp) and 1,500bp in length, respectively
- Successfully built full-length genes, mRNA and protein starting
from DNA generated using our SOLA enzymatic DNA synthesis
technology with our BioXp instrumentation
Strengthened organization to support future growth:
- Entered into a lease agreement for future office and laboratory
space, supporting the future growth of our organization and
enabling efficient and centralized operations
- Recruited key talent throughout the organization, including
more than 30 employees hired in the fourth quarter
Fourth Quarter 2021 Financial Results
- Revenue was $3.1 million for the fourth quarter 2021, a 59%
increase from $1.9 million for the same period in the prior year.
This growth was primarily driven by product sales from new product
introductions. Royalties and other revenue also grew due to an
increase in revenue related to the licensing of our products and
collaborations.
- Cost of revenue for the fourth quarter
2021 was $2.2 million, compared to $1.0 million for the same period
in the prior year. The increase of $1.2 million was primarily
driven by increased sales, resulting in higher raw material costs
associated with reagents sales and biofoundry services, shipping
and logistics costs and increased personnel and departmental
expenses.
- Operating expenses were $13.0 million
for the fourth quarter 2021, compared to $6.1 million for the same
period in the prior year. This increase was driven by headcount
expansion across our business, primarily in our commercial,
research and development and general and administrative
organizations. Other expense increases were related to professional
services, R&D material costs, facility costs and insurance
costs.
- Net loss was $12.5 million for the fourth quarter 2021,
compared to $5.6 million in the same period in the prior year. Net
loss per share was $0.43 for the fourth quarter of 2021, compared
to $1.12 for the corresponding prior year period.
- Cash and cash equivalents were $82.8 million as of December 31,
2021. In addition, the Company has approximately $14.7 million of
debt outstanding as of December 31, 2021.
Fiscal 2022 Financial Guidance
“Looking ahead, we are investing for the future and expect
strong financial results in 2022, with growth in our core BioXp
business, new product launches, and meaningful contributions from
our recently announced collaboration agreement with Pfizer,” said
Jennifer McNealey, Codex DNA’s Chief Financial Officer.
For the full year 2022, Codex DNA provided the following initial
financial guidance:
- Total Revenue in the range of $19 to $21
million
- Gross margin is expected to be in the range of low to mid forty
percent
- Operating expenses are expected to be approximately $70
million, driven by investments in R&D to accelerate launch of
the Company’s BioXp Oligo printer and SOLA enzymatic DNA Synthesis
program. R&D expense is expected to be approximately $31
million
Webcast and Conference Call InformationCompany
management will host a conference call today, Tuesday, March
22, 2022, at 1:30 p.m. Pacific Time / 4:30 p.m.
Eastern Time to discuss the financial results and other recent
corporate highlights.
The press release and live audio webcast can be accessed via the
Investor section of Codex DNA’s website at www.codexdna.com. The
conference call can be accessed by dialing (888) 705-0127
(domestic) or +1 (409) 937-8880 (international) and referring to
conference ID 9998693. Please log in approximately 5-10 minutes
before the event to ensure a timely connection. The archived
webcast will remain available for replay on Codex DNA’s website for
30 days.
About Codex DNACodex DNA is empowering
scientists with the ability to create novel, synthetic
biology-enabled solutions for many of humanity’s greatest
challenges. As inventors of the industry-standard Gibson Assembly®
method and the first commercial automated benchtop DNA and mRNA
synthesis system, Codex DNA is enabling rapid, accurate and
reproducible writing of DNA and mRNA for numerous downstream
markets. The award-winning BioXp™ system consolidates, automates
and optimizes the entire synthesis, cloning and amplification
workflow. As a result, it delivers virtually error-free synthesis
of DNA and RNA at scale within days and hours instead of weeks or
months. Scientists around the world are using the technology in
their own laboratories to accelerate the design-build-test paradigm
for novel, high-value products for precision medicine, biologics
drug discovery, vaccine and therapeutic development, genome
editing, and cell and gene therapy. Codex DNA is a public company
based in San Diego. For more information, visit codexdna.com.
Codex DNA, the Codex DNA logo, Gibson Assembly, and BioXp are
trademarks of Codex DNA Inc.
Forward-Looking StatementsThis press release
contains forward-looking statements. All statements other than
statements of historical facts contained herein are forward-looking
statements reflecting the current beliefs and expectations of
management made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements
include statements regarding Codex DNA’s financial guidance, growth
of operations and customer base, progress made on achieving
corporate goals, the future release of products and services and
the success of the acquisition of Eton Bioscience and collaboration
with Pfizer. Such statements are based on current assumptions that
involve risks and uncertainties that could cause actual outcomes
and results to differ materially. These risks and uncertainties,
many of which are beyond Codex DNA’s control, include risks
described in Codex DNA’s public filings, specifically the section
entitled Risk Factors and elsewhere in its annual Report on Form
10-K, which is anticipated to be filed with the Securities and
Exchange Commission on March 23, 2022. These forward-looking
statements speak only as of the date hereof and should not be
unduly relied upon. Codex DNA disclaims any obligation to update
these forward-looking statements.
Codex DNA, Inc. |
Selected Balance Sheet Financial Data |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
2021 |
|
|
2020 |
|
Balance Sheet
Data: |
|
|
|
|
|
Cash, cash equivalents and investments |
$ |
82,806 |
|
|
$ |
13,463 |
|
Working capital |
83,451 |
|
|
11,556 |
|
Total assets |
116,257 |
|
|
26,863 |
|
Total liabilities |
25,473 |
|
|
13,408 |
|
Convertible preferred stock |
- |
|
|
38,914 |
|
Accumulated deficit |
(65,270 |
) |
|
(26,312 |
) |
Total stockholders’ equity (deficit) |
90,784 |
|
|
(25,459 |
) |
|
|
|
|
|
|
Codex DNA,
Inc. |
Selected Statements of Operations Financial
Data |
(in thousands, except per share
amounts) |
|
(unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended December
31, |
|
|
Twelve Months Ended December
31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Product sales |
$ |
2,363 |
|
|
$ |
1,411 |
|
|
$ |
8,462 |
|
|
$ |
5,131 |
|
Royalties and other revenue |
715 |
|
|
526 |
|
|
2,581 |
|
|
1,445 |
|
Total revenue |
3,078 |
|
|
1,937 |
|
|
11,043 |
|
|
6,576 |
|
Cost of revenue |
2,196 |
|
|
1,018 |
|
|
6,744 |
|
|
2,951 |
|
Gross Profit |
882 |
|
|
919 |
|
|
4,299 |
|
|
3,625 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
5,331 |
|
|
2,662 |
|
|
14,548 |
|
|
8,925 |
|
Sales and marketing |
3,015 |
|
|
2,173 |
|
|
10,896 |
|
|
6,931 |
|
General and administrative |
4,633 |
|
|
1,254 |
|
|
14,229 |
|
|
4,130 |
|
Total operating expenses |
12,979 |
|
|
6,089 |
|
|
39,673 |
|
|
19,986 |
|
Loss from operations |
(12,097 |
) |
|
(5,170 |
) |
|
(35,374 |
) |
|
(16,361 |
) |
Interest expense, net |
(368 |
) |
|
(188 |
) |
|
(1,369 |
) |
|
(690 |
) |
Change in fair value of derivative liabilities |
11 |
|
|
(225 |
) |
|
(1,521 |
) |
|
(880 |
) |
Loss on extinguishment of debt |
— |
|
|
— |
|
|
(618 |
) |
|
— |
|
Other income (expense), net |
(33 |
) |
|
3 |
|
|
(62 |
) |
|
(74 |
) |
Provision for income taxes |
(4 |
) |
|
(3 |
) |
|
(14 |
) |
|
(5 |
) |
Net loss and comprehensive loss |
$ |
(12,491 |
) |
|
$ |
(5,583 |
) |
|
$ |
(38,958 |
) |
|
$ |
(18,010 |
) |
Net loss per share, basic and
diluted |
$ |
(0.43 |
) |
|
$ |
(1.12 |
) |
|
$ |
(2.14 |
) |
|
$ |
(3.60 |
) |
Weighted average common shares used to compute net loss per share,
basic and diluted |
29,312,629 |
|
|
5,004,802 |
|
|
18,222,495 |
|
|
5,001,538 |
|
Contact:Richard LepkeDirector of Investor
Relations(619) 840-5392RichardL@codexdna.com
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