Exagen Inc. Reports First Quarter 2020 Results
May 11 2020 - 4:05PM
Exagen Inc. (Nasdaq: XGN), an organization dedicated to
transforming the care continuum for patients suffering from
autoimmune diseases, today reported financial results for the
quarter ended March 31, 2020.
First Quarter Highlights:
- Generated total revenue of $9.6 million for the quarter ended
March 31, 2020.
- Delivered 27,126 flagship AVISE® CTD tests, including AVISE®
Lupus, in the first quarter 2020, a 13% increase over the first
quarter 2019.
- Grew the number of ordering healthcare providers in the first
quarter by 28% year-over-year to 1,692, with a record 582
adopters.
- Sequential quarterly retention rate of approximately 99% among
adopting healthcare providers from the prior quarter.
- Advanced reimbursement efforts, signing agreements with Sonora
Quest and three California medical groups.
“In these extraordinary times I would like to thank our
employees who have worked with the highest level of professionalism
to support our customers and continue providing critical testing
and therapeutic solutions for autoimmune disease patients. Despite
the trying conditions, Exagen employees have seamlessly maintained
our excellent quality standards and turnaround times that
healthcare providers and patients expect. I am very proud of our
team's efforts," said Ron Rocca, President and Chief Executive
Officer of Exagen. "We are all aware of the massive disruption from
the COVID-19 pandemic to the healthcare industry, and our business
has not been excluded. The company performed extremely well for
most of the quarter before the pandemic began to impact our
business and operations in March, reflecting the growing momentum
in our business that we have built over the past year. We are
well-capitalized, and I am confident we will emerge from the
pandemic stronger than ever."
First Quarter 2020 Financial Results
Revenue for the three months ended March 31, 2020 was $9.6
million and was derived from our tests, compared with $9.3 million
in the first quarter of 2019, driven by higher testing volumes
partially offset by a decrease in average reimbursement per test.
No revenue was recognized from our co-promotion efforts in the
first quarter of 2020, compared to $0.1 million in the first
quarter of 2019, due to prescription volume below the pre-defined
baseline.
Gross margin was 53% in the first quarter of 2020 compared to
52% in the first quarter of 2019, driven by higher testing
volumes.
Operating expenses increased to $14.8 million in the first
quarter of 2020, compared with $11.1 million in the first quarter
of 2019, due primarily to an increase in selling, general, and
administrative expenses associated with our salesforce expansion
and public company expenses not present in the first quarter
2019.
For the first quarter of 2020, net loss was $5.6 million
compared to a net loss of $2.7 million for the first quarter of
2019.
Cash and cash equivalents were approximately $68.6 million as of
March 31, 2020.
Conference Call
A conference call to review first quarter 2020 financial results
and to provide a business update is scheduled for today May 11th,
2020 at 4:30 PM Eastern Time (1:30PM Pacific Time). Interested
parties may access the conference call by dialing (877) 407-3982
(U.S.) or (201) 493-6780 (international). Additionally, a link to a
live webcast of the call will be available in the investor
relations section of Exagen's website at
http://investors.exagen.com.
Participants are asked to join a few minutes prior to the call
to register for the event. A replay of the conference call will be
available until Monday, May 18, 2020 at 11:59 PM Eastern Time (8:59
PM Pacific Time). Interested parties may access the replay by
dialing (844) 512-2921 (U.S.) or (412) 317-6671 (international)
using passcode 13701300. A link to the replay of the webcast will
also be available in the investor relations section of Exagen's
website.
About Exagen
Exagen is dedicated to transforming the care continuum for
patients suffering from debilitating and chronic autoimmune
diseases by enabling timely differential diagnosis and optimizing
therapeutic intervention. Exagen has developed and is
commercializing a portfolio of innovative testing products under
its AVISE® brand, several of which are based on our proprietary
Cell-Bound Complement Activation Products, or CB-CAPs, technology.
CB-CAPs assess the activation of the complement system, a
biological pathway that is widely implicated across many autoimmune
and autoimmune-related diseases, including systemic lupus
erythematosus, or SLE. Exagen’s goal is to enable rheumatologists
to improve care for patients through the differential diagnosis,
prognosis and monitoring of complex autoimmune and
autoimmune-related diseases, including SLE and rheumatoid
arthritis, or RA. Exagen’s model of integrating testing products
and therapeutics positions Exagen to offer targeted solutions to
rheumatologists and, ultimately, better serve patients. For
more information, please visit www.Exagen.com
Forward Looking Statements
Exagen cautions you that statements contained in this press
release regarding matters that are not historical facts are
forward-looking statements. These statements are based on the
company’s current beliefs and expectations. Such forward-looking
statements include, but are not limited to, statements regarding:
the expected impact of COVID-19 and company’s future operating
performance. The inclusion of forward-looking statements
should not be regarded as a representation by Exagen that any of
its plans will be achieved. Actual results may differ from those
set forth in this press release due to the risks and uncertainties
inherent in Exagen’s business, including, without limitation: the
COVID-19 pandemic may continue to adversely affect our business,
financial condition and results of operations, including as a
result of shutdowns of our facilities and operations as well as
those of our suppliers and courier services, impeding patient
movement and interruptions to healthcare services causing a
decrease in test volumes, disruptions to the supply chain of
material needed for our tests, our sales and commercialization
activities and our ability to receive specimens and perform or
deliver the results from our tests, delays in reimbursement and
coverage decisions from Medicare and third-party payors and in
interactions with regulatory authorities, and delays in ongoing and
planned clinical trials involving our tests; the company’s
commercial success depends upon attaining and maintaining
significant market acceptance of its testing products and promoted
therapeutics among rheumatologists, patients, third-party payers
and others in the medical community; the company’s ability to
successfully execute on its Dx/Rx strategy, including its promotion
efforts for SIMPONI®; third party payers not providing coverage and
adequate reimbursement for the company’s testing products or
promoted therapeutics; the company’s ability to obtain and maintain
intellectual property protection for its testing products;
regulatory developments affecting the company’s business; and other
risks described in the company’s prior press releases and the
Company’s filings with the Securities and Exchange Commission
(SEC), including under the heading “Risk Factors” in the company’s
Annual Report on Form 10-K and any subsequent filings with the SEC.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
and Exagen undertakes no obligation to update such statements to
reflect events that occur or circumstances that exist after the
date hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, which is made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995.
CONTACTS:
InvestorsWestwicke PartnersMike
CavanaughMike.Cavanaugh@westwicke.com 646.677.1838
CompanyExagen Inc.Kamal Adawi, Chief Financial
Officerkadawi@exagen.com 760.477.5514
|
Exagen Inc. |
|
Unaudited Condensed Statements of Operations |
(in thousands, except share and per share
data) |
|
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
|
(Unaudited) |
Revenue |
$ |
9,584 |
|
|
$ |
9,260 |
|
Operating expenses: |
|
|
|
Costs of revenue |
4,545 |
|
|
4,442 |
|
Selling, general and administrative expenses |
9,626 |
|
|
6,179 |
|
Research and development expenses |
634 |
|
|
513 |
|
Total operating expenses |
14,805 |
|
|
11,134 |
|
Loss from operations |
(5,221 |
) |
|
(1,874 |
) |
Interest expense |
(631 |
) |
|
(901 |
) |
Other income, net |
171 |
|
|
71 |
|
Loss before income taxes |
(5,681 |
) |
|
(2,704 |
) |
Income tax benefit |
118 |
|
|
— |
|
Net loss |
(5,563 |
) |
|
(2,704 |
) |
Accretion of redeemable
convertible preferred stock |
— |
|
|
(2,114 |
) |
Net loss attributable to
common stockholders |
$ |
(5,563 |
) |
|
$ |
(4,818 |
) |
Net loss per share, basic and
diluted |
$ |
(0.44 |
) |
|
$ |
(76.46 |
) |
Weighted-average number of
shares used to compute net loss per share, basic and diluted |
12,595,715 |
|
|
63,016 |
|
|
Exagen Inc. |
|
Condensed Balance Sheets |
(in thousands, except share and per share
data) |
|
|
|
|
|
March 31, |
|
December 31, |
|
2020 |
|
2019 |
Assets |
(Unaudited) |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
68,648 |
|
|
$ |
72,084 |
|
Accounts receivable, net |
5,843 |
|
|
5,715 |
|
Prepaid expenses and other current assets |
3,084 |
|
|
3,451 |
|
Total current assets |
77,575 |
|
|
81,250 |
|
Property and equipment,
net |
1,376 |
|
|
1,380 |
|
Goodwill |
5,506 |
|
|
5,506 |
|
Other assets |
187 |
|
|
174 |
|
Total assets |
$ |
84,644 |
|
|
$ |
88,310 |
|
Liabilities and
Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,566 |
|
|
$ |
1,476 |
|
Accrued liabilities |
4,763 |
|
|
4,419 |
|
Total current liabilities |
7,329 |
|
|
5,895 |
|
Borrowings-non-current
portion, net of discounts and debt issuance costs |
26,050 |
|
|
25,854 |
|
Deferred tax liabilities |
147 |
|
|
264 |
|
Other non-current
liabilities |
581 |
|
|
638 |
|
Total liabilities |
34,107 |
|
|
32,651 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity: |
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no
shares issued or outstanding at March 31, 2020 and December
31, 2019 |
— |
|
|
— |
|
Common stock, $0.001 par value; 200,000,000 shares authorized at
March 31, 2020 and December 31, 2019, respectively; 12,627,056
and 12,560,990 shares issued and outstanding at March 31, 2020
and December 31, 2019, respectively |
13 |
|
|
13 |
|
Additional paid-in capital |
220,689 |
|
|
220,248 |
|
Accumulated deficit |
(170,165 |
) |
|
(164,602 |
) |
Total stockholders' equity |
50,537 |
|
|
55,659 |
|
Total liabilities and
stockholders' equity |
$ |
84,644 |
|
|
$ |
88,310 |
|
Exagen (NASDAQ:XGN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Exagen (NASDAQ:XGN)
Historical Stock Chart
From Sep 2023 to Sep 2024