Telesis Bio Reports Second Quarter and First Half 2024 Financial Results
August 07 2024 - 4:05PM
Telesis Bio Inc. (NASDAQ: TBIO), a leading provider of RNA and DNA
solutions enabling researchers to accelerate therapeutic discovery
through advanced, flexible, and rapid automated synthesis
technology in their own lab, today announced financial results for
the second quarter and first half of 2024.
Highlights
- Gibson SOLA – the
Company continues to advance its Gibson SOLA reagent platform that
enables on-premises automated overnight synthesis of high-fidelity
long DNA and mRNA on a variety of liquid handling platforms. The
Company’s presentation “Enhancing Therapeutic Protein Production
with Gibson SOLA Enzymatic DNA Assembly: Pioneering on-Demand DNA
and mRNA Synthesis for Biotechnological Innovation”, delivered in
May at the 2024 PEGS conference in Boston was well received, and
the Company continues to see growing interest in the market for
adopting this platform.
- Eton Subsidiary –
the Company made a strategic decision to divest its Eton
subsidiary. As a result, Eton is reflected as a discontinued
operation in the consolidated financial statements of the Company
for all periods presented.
- Second Quarter, 2024
Restructuring – along with the action related to our Eton
subsidiary noted above, in the second quarter of the year the
Company undertook a variety of additional restructuring activities
tied to further reducing its cost base across all areas of the
business. The goal of this process was to align our cost structure
to current market conditions and our focus on commercial adoption
of Gibson SOLA. While these actions resulted in significant second
quarter, 2024 non-recurring expenditures (described in the Summary
of Financial Results that follows), the favorable impact on future
quarters will be substantial relative to Company spending levels of
recent years.
- CEO Transition –
as previously reported on April 18, 2024, Eric Esser , President,
and COO of Telesis Bio assumed the role of CEO and joined the
Company’s Board of Directors. Prior to his appointment as CEO, Eric
had successfully run Telesis Bio’s operations for approximately two
years.
- Pfizer
Collaboration - in other recent highlights, the Company
continues to pursue activities under its strategic research
collaboration and license agreement with Pfizer. This program is
based upon Telesis’ proprietary SOLA platform which utilizes
enzymatic DNA synthesis technology for potential application by
Pfizer in mRNA-based vaccines and other biopharma products.
Summary of Second Quarter 2024 Financial
Results
Revenue - Revenue for the three months ended
June 30, 2024 was $1.6 million compared to $7.0 million for
the three months ended June 30, 2023 ($2.7 million and $8.7
million, respectively including revenue from Eton). The decrease
was attributable to a reduction in product revenue of $1.8 million
driven by our transition to Gibson SOLA as our primary commercial
focus, and a decrease in collaboration revenue of $3.5 million,
driven primarily by the timing of milestone completion under our
strategic collaborations with Pfizer and reduction in deferred
revenue recognition from up-front payments under that
collaboration.
Gross Margin – The Company’s gross margin
percentage was -52% for the three months ended June 30, 2024,
compared to 71% for the same period in 2023. The unfavorable change
in gross margin percentage was primarily driven by recognition of
$1.8 million in one-time charges related to restructuring, and a
decrease in high-margin collaboration revenue due to milestone
timing. Absent the $1.8 million restructuring charge in the second
quarter of 2024, gross margin would have been 64% for the
quarter.
Operating Expense – Second quarter of 2024
operating expense of $10.7 million was $1.7 million or 14% improved
from the prior year result of $12.4 million even with significant
restructuring charges recorded during the current year period.
Exclusive of employee severance and impairment charges tied to
restructuring activity, the current year expense level of $10.7
million would have been $8.8 million representing a $3.7 million or
30% reduction from the prior year level of $12.4 million.
With respect to all restructuring charges noted above and posted
in the second quarter of 2024, the favorable impact on future
quarters will be substantial.
Net loss was $13.2 million for the second quarter of 2024,
compared to a loss of $8.4 million in the same period in the prior
year. Net loss per share was $7.62 for the second quarter of 2024,
compared to $5.10 for the corresponding prior year period.
As of June 30, 2024, cash, cash equivalents, restricted cash,
and investments were $10.3 million, and notes payable was $5.3
million.
The Company will not be issuing additional forward-looking
guidance at this time.
About Telesis Bio
Telesis Bio 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, Telesis Bio is enabling rapid, accurate
and reproducible writing of DNA and mRNA for numerous downstream
markets. Company products and technologies deliver 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.
Telesis Bio is a public company based in San Diego. For more
information, visit www.telesisbio.com. Telesis Bio, the Telesis Bio
logo, Gibson Assembly, and BioXp are trademarks of Telesis Bio
Inc.
Forward-Looking Statements
This 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 and guidance regarding
Telesis Bio’s future financial performance as well as statements
regarding the future release and success of new and existing
products and services. Such statements are based on current
assumptions that involve risks and uncertainties that could cause
actual outcomes and results to differ materially from current
expectations. These risks and uncertainties, many of which are
beyond our control, include risks described in the section entitled
Risk Factors and elsewhere in our most recently filed Quarterly
Report on Form 10-Q and Annual Report on Form 10-K. These
forward-looking statements speak only as of the date hereof and
should not be unduly relied upon. Telesis Bio disclaims any
obligation to update these forward-looking statements.
Contact:William J. KullbackChief Financial
Officerbill.kullback@telesisbio.com
Telesis Bio Inc.Selected Statements of Operations
Financial Data(in thousands, except per share
amounts)(unaudited) |
|
Three Months Ended June
30, |
|
|
Six Months Ended June
30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
$ |
841 |
|
|
$ |
2,670 |
|
|
$ |
2,105 |
|
|
$ |
5,671 |
|
|
Service revenue |
|
— |
|
|
|
65 |
|
|
|
— |
|
|
|
101 |
|
|
Collaboration revenue |
|
— |
|
|
|
3,462 |
|
|
|
— |
|
|
|
4,424 |
|
|
Royalties and other revenue |
|
709 |
|
|
|
807 |
|
|
|
1,634 |
|
|
|
1,486 |
|
|
Total revenue |
|
1,550 |
|
|
|
7,004 |
|
|
|
3,739 |
|
|
|
11,682 |
|
|
Cost of revenue |
|
2,349 |
|
|
|
2,039 |
|
|
|
3,431 |
|
|
|
3,934 |
|
|
Gross Profit |
|
(799 |
) |
|
|
4,965 |
|
|
|
308 |
|
|
|
7,748 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
2,470 |
|
|
|
3,921 |
|
|
|
4,829 |
|
|
|
8,414 |
|
|
Sales and marketing |
|
1,698 |
|
|
|
3,192 |
|
|
|
3,260 |
|
|
|
6,867 |
|
|
General and administrative |
|
5,507 |
|
|
|
5,294 |
|
|
|
10,481 |
|
|
|
10,396 |
|
|
Impairment of property and equipment |
|
1,017 |
|
|
|
— |
|
|
|
1,017 |
|
|
|
— |
|
|
Total operating expenses |
|
10,692 |
|
|
|
12,407 |
|
|
|
19,587 |
|
|
|
25,677 |
|
|
Loss from operations |
|
(11,491 |
) |
|
|
(7,442 |
) |
|
|
(19,279 |
) |
|
|
(17,929 |
) |
|
Interest income |
|
160 |
|
|
|
374 |
|
|
|
388 |
|
|
|
764 |
|
|
Interest expense |
|
(214 |
) |
|
|
(707 |
) |
|
|
(431 |
) |
|
|
(1,346 |
) |
|
Change in fair value of
derivative liabilities |
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
159 |
|
|
Other expense, net |
|
(15 |
) |
|
|
(3 |
) |
|
|
(146 |
) |
|
|
(39 |
) |
|
Provision for income
taxes |
|
(1 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(7 |
) |
|
Loss from continuing
operations |
|
(11,561 |
) |
|
|
(7,763 |
) |
|
|
(19,471 |
) |
|
|
(18,398 |
) |
|
Loss from discontinuing
operations |
|
(1,024 |
) |
|
|
(524 |
) |
|
|
(1,751 |
) |
|
|
(1,008 |
) |
|
Net Loss |
$ |
(12,585 |
) |
|
$ |
(8,287 |
) |
|
$ |
(21,222 |
) |
|
$ |
(19,406 |
) |
|
Less: redeemable convertible
preferred stock dividends |
|
(596 |
) |
|
|
(153 |
) |
|
|
(1,181 |
) |
|
|
(153 |
) |
|
Net loss attributable to
common stockholders |
$ |
(13,181 |
) |
|
$ |
(8,440 |
) |
|
$ |
(22,403 |
) |
|
$ |
(19,559 |
) |
|
Net loss per share from
continuing operations attributable to common stockholders—basic and
diluted |
$ |
(7.03 |
) |
|
$ |
(4.79 |
) |
|
$ |
(12.14 |
) |
|
$ |
(11.24 |
) |
|
Net loss per share from
discontinuing operations attributable to common stockholders—basic
and diluted |
$ |
(0.59 |
) |
|
$ |
(0.32 |
) |
|
$ |
(1.03 |
) |
|
$ |
(0.61 |
) |
|
Net loss per share
attributable to common stockholders—basic and diluted |
$ |
(7.62 |
) |
|
$ |
(5.10 |
) |
|
$ |
(13.17 |
) |
|
$ |
(11.85 |
) |
|
Weighted average common stock
outstanding—basic and diluted |
|
1,730,210 |
|
|
|
1,654,127 |
|
|
|
1,700,596 |
|
|
|
1,651,053 |
|
|
Telesis
Bio Inc.Selected Balance Sheet Financial Data(in
thousands)(unaudited) |
|
June 30, |
|
|
December 31, |
|
|
2024 |
|
|
2023 |
|
Balance Sheet
Data: |
|
|
|
|
|
Cash, restricted cash, cash equivalents and short-term
investments |
$ |
10,314 |
|
|
$ |
19,333 |
|
Working capital |
|
7,143 |
|
|
|
22,167 |
|
Total assets |
|
52,727 |
|
|
|
70,411 |
|
Total liabilities |
|
42,781 |
|
|
|
40,873 |
|
Redeemable convertible preferred stock |
|
30,481 |
|
|
|
29,300 |
|
Accumulated deficit |
|
(182,687 |
) |
|
|
(161,465 |
) |
Total stockholders’ (deficit) equity |
|
(20,535 |
) |
|
|
238 |
|
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