Talis Biomedical Announces Business Update and First Quarter 2023 Financial Results
May 11 2023 - 4:05PM
Talis Biomedical Corporation (Nasdaq: TLIS), a diagnostic company
dedicated to advancing health equity and outcomes through the
delivery of accurate infectious disease testing in the moment of
need, at the point of care, today announced a business update and
reported financial results for the first quarter ended March 31,
2023.
Business Update
- Established ability to manufacture cartridges and instruments
that puts us on a path to meaningful margins at scale, at the pace
and quality needed to execute the company’s business strategy
- Prioritized development of four Talis One® test panels to
address significant unmet needs in the women’s and sexual health
markets, consisting of:
- Influenza A, influenza B and COVID-19 respiratory panel
- Chlamydia, gonorrhea and trichomonas vaginalis (CT/NG/TV)
panel
- Herpes simplex virus (HSV1-2) panel
- Vaginal infection panel
- Received feedback from the FDA on pre-submissions to support
510(k) clearance of respiratory and CT/NG/TV test panels
- Delivered 62% improvement in net cash used in operating
activities year-over-year, extending our cash runway into 2025
“With significant advances in our manufacturing capabilities, a
clearly defined product menu and disciplined regulatory strategy to
minimize risk, Talis Biomedical is executing on our plan to deliver
multiple women’s and sexual health test panels at the point of
care,” said Rob Kelley, chief executive officer of Talis
Biomedical. “We are well capitalized and have an experienced team
in place to unlock this large and untapped $3 billion market with
our differentiated Talis One
system.” First
Quarter 2023 Financial Results Revenue was $1.2 million
for the first quarter of 2023, compared to $3.2 million for the
same period in 2022. This includes $1.1 million of NIH grant
revenue and $0.1 million of product revenue from antigen testing
sales.
Operating expenses were $20.2 million in the first quarter of
2023, compared to $36.2 million for the same period in 2022. The
decrease was primarily driven by lower antigen test and raw card
inventory expenses and the realization of benefits from the cost
reduction measures implemented during 2022. The Company also
incurred $3.1 million of non-recurring expenses to obtain a license
to patents and cartridge raw materials in connection with the
termination of a supply agreement with one of its contract
manufacturers.
Net loss was $17.8 million for the first quarter of 2023,
compared to $33.1 million for the same period in 2022.
Cash and LiquidityUnrestricted cash and cash
equivalents as of March 31, 2023, were $113.0 million.
Net cash used in operating activities for the first quarter of
2023 was $16.5 million, as compared to $43.8 million in the first
quarter of 2022. This decrease was primarily driven by lower
headcount costs from the Company’s spending reduction program as
well as declines in payments for antigen test and raw card
inventory.
About Talis BiomedicalTalis Biomedical is
dedicated to advancing health equity and outcomes through the
delivery of accurate infectious disease testing in the moment of
need, at the point of care. The company plans to develop and
commercialize innovative products on its sample-to-answer Talis
One® system to enable accurate, low cost, and rapid molecular
testing. For more information, visit talisbio.com.
Forward-Looking Statements This press release
may contain forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995. Words such as
“may,” “might,” “will,” “would,” “should,” “believe,” “expect,”
“anticipate,” “could,” “estimate,” “continue,” “predict,”
“potential,” “forecast,” “project,” “plan,” “intend” or similar
expressions, or other words that convey uncertainty of future
events or outcomes can be used to identify these forward-looking
statements. Forward-looking statements include statements regarding
our intentions, beliefs, projections, outlook, analyses or current
expectations concerning, among other things: our plans to advance
our pipeline, including the plans to develop Talis One assays in
the women’s and sexual health markets; the size and potential of
our opportunity in the women’s and sexual health markets; our
ability to capitalize on any competitive advantages; our ability to
position the Company to provide durable value to our shareholders;
the benefits of our regulatory strategy; our future revenue growth
and profit margins; and our ability to lower our cash burn, extend
operations and extend our cash runway. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors that could cause actual results and
events to differ materially and adversely from those indicated by
such forward-looking statements including, among others: risks and
uncertainties associated with development and regulatory approval,
the impact to our business from global economic conditions,
including inflationary pressures, the ongoing COVID-19 pandemic and
any related impact on our ability to develop our pipeline products,
our ability to achieve or sustain profitability, our ability to
launch and gain market acceptance for our pipeline products and to
accurately forecast and meet customer demand, our ability to
compete successfully, our ability to enhance our product offerings,
development and manufacturing, capacity constraints or delays in
production of our products, product defects or failures. These and
other risks and uncertainties are described more fully in the “Risk
Factors” section and elsewhere in our filings with the Securities
and Exchange Commission and available at www.sec.gov, including in
our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
These statements are based upon information available to us as of
the date of this press release, and while we believe such
information forms a reasonable basis for such statements, such
information may be limited or incomplete, and our statements should
not be read to indicate that we have conducted an exhaustive
inquiry into, or review of, all potentially available relevant
information. These statements are inherently uncertain and
investors are cautioned not to unduly rely upon these statements.
Any forward-looking statements that we make in this announcement
speak only as of the date of this press release, and Talis assumes
no obligation to updates forward-looking statements whether as a
result of new information, future events or otherwise after the
date of this press release, except as required under applicable
law.
Contact Media & InvestorsEmily
Faucetteefaucette@talisbio.com415-595-9407
|
Talis Biomedical
Corporation Condensed Balance
Sheets (in thousands) |
|
|
|
March 31 |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
112,959 |
|
|
$ |
130,191 |
|
Restricted cash |
|
|
1,010 |
|
|
|
— |
|
Accounts receivable, net |
|
|
127 |
|
|
|
308 |
|
Prepaid expenses and other current assets |
|
|
1,492 |
|
|
|
2,783 |
|
Total current assets |
|
|
115,588 |
|
|
|
133,282 |
|
Property
and equipment, net |
|
|
3,634 |
|
|
|
3,312 |
|
Operating lease right-of-use-assets |
|
|
12,289 |
|
|
|
30,920 |
|
Other
long-term assets |
|
|
1,542 |
|
|
|
1,776 |
|
Total assets |
|
$ |
133,053 |
|
|
$ |
169,290 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
3,871 |
|
|
$ |
3,768 |
|
Accrued compensation |
|
|
2,733 |
|
|
|
4,212 |
|
Accrued liabilities |
|
|
1,614 |
|
|
|
989 |
|
Operating lease liabilities, current portion |
|
|
2,962 |
|
|
|
3,703 |
|
Total current liabilities |
|
|
11,180 |
|
|
|
12,672 |
|
Operating lease liabilities, long-term portion |
|
|
11,749 |
|
|
|
29,879 |
|
Total liabilities |
|
$ |
22,929 |
|
|
$ |
42,551 |
|
Stockholders’ equity: |
|
|
|
|
Series 1 convertible preferred stock |
|
|
3 |
|
|
|
3 |
|
Common stock |
|
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
|
605,903 |
|
|
|
604,687 |
|
Accumulated deficit |
|
|
(495,785 |
) |
|
|
(477,954 |
) |
Total stockholders’ equity |
|
|
110,124 |
|
|
|
126,739 |
|
Total liabilities and stockholders’ equity |
|
$ |
133,053 |
|
|
$ |
169,290 |
|
|
Talis Biomedical
Corporation Condensed Statements of
Operations and Comprehensive Loss (Unaudited)(in
thousands) |
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
Grant revenue |
|
$ |
1,081 |
|
|
$ |
874 |
|
Product revenue, net |
|
|
137 |
|
|
|
2,313 |
|
Total revenue, net |
|
|
1,218 |
|
|
|
3,187 |
|
Operating expenses: |
|
|
|
|
Cost of products sold |
|
|
20 |
|
|
|
3,521 |
|
Research and development |
|
|
13,796 |
|
|
|
20,703 |
|
Selling, general and administrative |
|
|
6,399 |
|
|
|
11,930 |
|
Total operating expenses |
|
|
20,215 |
|
|
|
36,154 |
|
Loss
from operations |
|
|
(18,997 |
) |
|
|
(32,967 |
) |
Other
income (expense), net |
|
|
1,166 |
|
|
|
(84 |
) |
Net loss
and comprehensive loss |
|
$ |
(17,831 |
) |
|
$ |
(33,051 |
) |
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