MaxCyte, Inc., (NASDAQ: MXCT; LSE: MXCT, MXCN), a leading
commercial cell engineering company focused on providing enabling
platform technologies to advance innovative cell-based research as
well as next-generation cell therapeutic discovery, development and
commercialization, today announced its financial results for its
second quarter and six months ended June 30, 2021.
Second Quarter & Recent
Highlights
- Total revenue of $7.1 million in
the second quarter of 2021, representing 38% growth compared to the
same period in 2020
- Excluding SPL Program-related
revenue, revenue from cell therapy customers was $4.8 million for
the second quarter, an increase of 59% year-over-year, while
revenue from drug discovery customers was $1.8 million in the
second quarter, an increase of 60% year-over-year. SPL
Program-related revenue was $0.5 million in the second quarter, as
compared to $1.0 million for the same period in 2020
- Signed two new SPL agreements with
Celularity, Inc. (Q2) and Sana Biotechnology, Inc. (Q3) for the use
of MaxCyte's Flow Electroporation® ExPERT™ platform to advance
cellular research and development of cell-based therapies
- Expanded Board of Directors with the appointment of Ms. Rekha
Hemrajani and Dr. Yasir Al-Wakeel
- Completed U.S. initial public offering on Nasdaq Global Select
Stock Market, raising $201.8 million in gross proceeds
“We are pleased to report strong second quarter
and half year results driven by growth in instrument revenue and
disposable sales to the cell therapy market as our cell therapy
partners continue to progress into and through the clinic. We also
saw a resurgence of growth in drug discovery customers as new
disposables introduced in 2020 have started to gain traction,
driving both instrument and disposable sales growth,” said Doug
Doerfler, President and CEO of MaxCyte.
“Our customer base is expanding and we continue
to increase the number of strategic partnerships. We now have 14
SPL agreements covering over 75 potential clinical programs, which
is a testament to MaxCyte’s reputation as a leading collaborator
for complex cellular engineering. With the proceeds from our IPO in
the U.S., MaxCyte is well-positioned to support growing adoption of
the ExpertTM platform technology for cellular-based research and
next-generation therapeutic development.”
Second Quarter Financial
Results
Total revenue for the second quarter of 2021 was
$7.1 million, compared to $5.2 million in the second quarter of
2020, representing year-over-year growth of 38%. Overall sales to
the cell therapy (up 59%) and the drug discovery (up 60%) markets
were each sources of strength in the quarter.
The Company recognized $0.5 million in Program-related revenue
in the quarter (comprised of pre-commercial milestone revenues) as
compared to $1.0 million in Program-related revenue in the second
quarter of 2020.
Gross profit for the second quarter of 2021 was
$6.3 million (89% gross margin), compared to $4.7 million (91%
gross margin) in the same period of the prior year. The slight
decline in gross margin was driven by the reduction in SPL
Program-related revenues; excluding SPL Program-related revenues,
gross margin was relatively unchanged.
Operating expenses for the second quarter of
2021 were $10.7 million, compared to operating expenses of $7.5
million in the second quarter of 2020. The overall increase in
operating expense was principally driven by a $3.3 million increase
in compensation expense associated with increased headcount and
higher stock-based compensation (principally due to stock-price
appreciation), as well as a $1.0 million increase in legal and
professional service expenses. Partially offsetting this expense
growth was a $1.9 million decline in CARMA-related expenses
compared with the same period last year. As of March 2021, all
pre-clinical and clinical activities related to the CARMA platform
were substantially completed.
Second quarter 2021 net loss was ($4.4) million
compared to net loss of ($3.0) million for the same period in
2020.
Total cash, cash equivalents and short-term
investments was $73.4 million as of June 30, 2021 excluding the
$201.8 million in gross proceeds from the U.S. IPO that closed in
August 2021.
Preliminary 2021 Revenue
Following our recent IPO on the Nasdaq, the
company is establishing an initial projection of total revenue of
approximately $30 million for fiscal year
2021. First
Half 2021 Financial Results
Total revenue for the first half of 2021 was
$13.6 million, compared to $10.9 million in the first half of 2020,
representing year-over-year growth of 25%. Overall sales to the
cell therapy (up 53%) and the drug discovery (up 22%) markets were
each sources of strength in the first half.
The Company recognized $0.5 million in Program-related revenue
in the first half (comprised of pre-commercial milestone revenues)
as compared to $1.8 million in Program-related revenue in the first
half of 2020.
Gross profit for the first half of 2021 was
$12.1 million (89% gross margin), compared to $9.8 million (90%
gross margin) in the same period of the prior year. The slight
decline in gross margin was driven by the reduction in SPL
Program-related revenues; excluding SPL Program-related revenues,
gross margin was relatively unchanged.
Operating expenses for the first half of 2021
were $22.9 million, compared to operating expenses of $15.6 million
in the first half of 2020. The overall increase in operating
expense was principally driven by a $5.8 million increase in
compensation expense associated with increased headcount and higher
stock-based compensation (principally due to stock-price
appreciation), as well as a $1.4 million increase in legal and
professional service expenses. Partially offsetting this expense
growth was a $0.8 million decline in CARMA-related expenses
compared with the same period last year. As of March 2021, all
pre-clinical and clinical activities related to the CARMA platform
were substantially completed.
First half 2021 net loss was ($11.5) million
compared to net loss of ($6.1) million for the same period in
2020.
Webcast and Conference Call
Details
MaxCyte will host a conference call today,
September 13, 2021, at 4:30 p.m. Eastern Time. Interested parties
may access the live teleconference by dialing (844) 679-0933 for
domestic callers or (918) 922-6914 for international callers,
followed by Conference ID: 3199124. A live and archived webcast of
the event will be available on the “Events” section of the MaxCyte
website at https://investors.maxcyte.com/
About MaxCyte
Maxcyte is a leading commercial cell engineering
company focused on providing enabling platform technologies to
advance innovative cell-based research as well as next-generation
cell therapeutic discovery, development and commercialization. Over
the past twenty years, we have developed and commercialized
our proprietary Flow Electroporation platform, which facilitates
complex engineering of a wide variety of cells. Our
ExPERT® platform, which is based on our Flow Electroporation
technology, has been designed to support the rapidly expanding cell
therapy market and can be utilized across the continuum of the
high-growth cell therapy sector, from discovery and development
through commercialization of next-generation, cell-based medicines.
The ExPERT family of products includes: three instruments, the ATx,
STx and GTx; a portfolio of proprietary related processing
assemblies or disposables; and software protocols, all supported by
a robust worldwide intellectual property portfolio.
Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, including but
not limited to, statements regarding our revenue guidance for the
year ending December 31, 2021 and expectations regarding the
progression of our customers’ programs into and through clinical
trials. The words "may," “might,” "will," "could," "would,"
"should," "expect," "plan," "anticipate," "intend," "believe,"
“expect,” "estimate," “seek,” "predict," “future,” "project,"
"potential," "continue," "target" and similar words or expressions
are intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words. Any
forward-looking statements in this press release are based on
management's current expectations and beliefs and are subject to a
number of risks, uncertainties and important factors that may cause
actual events or results to differ materially from those expressed
or implied by any forward-looking statements contained in this
press release, including, without limitation, risks associated with
the impact of COVID-19 on our operations; the timing of our
customers’ ongoing and planned clinical trials; the adequacy of our
cash resources and availability of financing on commercially
reasonable terms; and general market and economic conditions. These
and other risks and uncertainties are described in greater detail
in the section entitled "Risk Factors" in our final prospectus
dated July 29, 2021, filed with the Securities and Exchange
Commission on July 30, 2021, as well as discussions of potential
risks, uncertainties, and other important factors in the other
filings that we make with the Securities and Exchange Commission
from time to time. These documents are available under the “SEC
filings” page of the Investors section of our website at
http://investors.maxcyte.com. Any forward-looking statements
represent our views only as of the date of this press release and
should not be relied upon as representing our views as of any
subsequent date. We explicitly disclaim any obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise. No representations or
warranties (expressed or implied) are made about the accuracy of
any such forward-looking statements.
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MaxCyte Contacts: |
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US IR Adviser |
|
Gilmartin Group |
+1 415-937-5400 |
David Deuchler, CFA |
ir@maxcyte.com |
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Nominated Adviser and Joint Corporate Broker |
|
Panmure Gordon |
+44 (0)20 7886 2500 |
Emma Earl / Freddy Crossley |
|
Corporate Broking |
|
Rupert Dearden |
|
|
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UK IR Adviser |
+44 (0)203 709 5700 |
Consilium Strategic Communications |
maxcyte@consilium-comms.com |
Mary-Jane Elliott |
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Chris Welsh |
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MaxCyte, Inc. |
Unaudited
Condensed Consolidated Balance Sheets |
|
June 30, |
|
December 31, |
|
2021 |
|
2020 |
|
(Unaudited) |
|
(Note 2) |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash
equivalents |
$ |
37,423,200 |
|
|
$ |
18,755,200 |
|
Short-term investments, at amortized cost |
35,968,700 |
|
|
16,007,500 |
|
Accounts receivable, net |
5,719,200 |
|
|
5,171,900 |
|
Inventory, net |
4,169,500 |
|
|
4,315,800 |
|
Other current assets |
1,345,700 |
|
|
1,003,000 |
|
Total current assets |
84,626,300 |
|
|
45,253,400 |
|
|
|
|
|
|
|
Property and equipment, net |
5,472,200 |
|
|
4,546,200 |
|
Right of use asset - operating leases |
1,173,900 |
|
|
1,728,300 |
|
Right of use asset - finance leases |
170,7 |
|
|
218,3 |
|
Other assets |
1,704,100 |
|
|
33,9 |
|
Total assets |
$ |
93,147,200 |
|
|
$ |
51,780,100 |
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
644,7 |
|
|
$ |
890,2 |
|
Accrued expenses and other |
4,518,300 |
|
|
5,308,500 |
|
Operating lease liability, current |
616,5 |
|
|
572,6 |
|
Deferred revenue, current portion |
6,754,800 |
|
|
4,843,000 |
|
Total current liabilities |
12,534,300 |
|
|
11,614,300 |
|
|
|
|
|
|
|
Note payable, net of discount, and deferred fees |
— |
|
|
4,917,000 |
|
Operating lease liability, net of current portion |
606,7 |
|
|
1,234,600 |
|
Other liabilities |
1,185,000 |
|
|
788,8 |
|
Total liabilities |
14,326,000 |
|
|
18,554,700 |
|
|
|
|
|
|
|
Commitments and contingencies (Note 7) |
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
Common stock, $0.01 par value; 200,000,000 shares
authorized, 84,719,345 and 77,382,473 shares issued and
outstanding at June 30, 2021 and
December 31, 2020, respectively |
847,2 |
|
|
773,8 |
|
Additional paid-in capital |
184,723,700 |
|
|
127,673,900 |
|
Accumulated deficit |
(106,749,700 |
) |
|
(95,222,300 |
) |
Total stockholders’ equity |
78,821,200 |
|
|
33,225,400 |
|
Total liabilities and stockholders’
equity |
$ |
93,147,200 |
|
|
$ |
51,780,100 |
|
|
|
|
|
|
|
MaxCyte, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
$ |
7,108,100 |
|
|
$ |
5,150,400 |
|
|
$ |
13,602,900 |
|
|
$ |
10,892,400 |
|
Costs of
goods sold |
|
784,500 |
|
|
|
466,300 |
|
|
|
1,477,600 |
|
|
|
1,125,300 |
|
Gross
profit |
|
6,323,600 |
|
|
|
4,684,100 |
|
|
|
12,125,300 |
|
|
|
9,767,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and
development |
|
3,205,500 |
|
|
|
4,090,400 |
|
|
|
9,283,200 |
|
|
|
8,335,100 |
|
Sales and
marketing |
|
2,912,900 |
|
|
|
1,843,900 |
|
|
|
5,702,000 |
|
|
|
3,894,000 |
|
General and
administrative |
|
4,622,400 |
|
|
|
1,594,400 |
|
|
|
7,930,400 |
|
|
|
3,370,900 |
|
Total
operating expenses |
|
10,740,800 |
|
|
|
7,528,700 |
|
|
|
22,915,600 |
|
|
|
15,600,000 |
|
Operating
loss |
|
(4,417,200 |
) |
|
|
(2,844,600 |
) |
|
|
(10,790,300 |
) |
|
|
(5,832,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense |
|
(13,200 |
) |
|
|
(164,700 |
) |
|
|
(755,500 |
) |
|
|
(281,800 |
) |
Interest
income |
|
8,600 |
|
|
|
5,200 |
|
|
|
18,400 |
|
|
|
48,700 |
|
Total
other income (expense) |
|
(4,600 |
) |
|
|
(159,500 |
) |
|
|
(737,100 |
) |
|
|
(233,100 |
) |
Provision
for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
loss |
$ |
(4,421,800 |
) |
|
$ |
(3,004,100 |
) |
|
$ |
(11,527,400 |
) |
|
$ |
(6,066,000 |
) |
Basic and
diluted net loss per share |
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.10 |
) |
Weighted
average shares outstanding, basic and diluted |
|
84,706,516 |
|
|
|
65,834,978 |
|
|
|
82,865,526 |
|
|
|
61,619,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MaxCyte, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
|
|
Net loss |
$ |
(11,527,400 |
) |
|
$ |
(6,066,000 |
) |
|
|
|
|
|
|
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization on property and equipment, net |
|
641,400 |
|
|
|
478,200 |
|
Net book value of consigned equipment sold |
|
13,900 |
|
|
|
12,000 |
|
Loss on disposal of fixed assets |
|
19,800 |
|
|
|
51,300 |
|
Fair value adjustment of liability classified warrant |
|
358,200 |
|
|
|
- |
|
Stock-based compensation |
|
3,225,000 |
|
|
|
1,106,600 |
|
Bad debt (recovery) expense |
|
- |
|
|
|
(117,200 |
) |
Amortization of discounts on short-term investments |
|
1,900 |
|
|
|
(1,100 |
) |
Noncash interest expense |
|
5,400 |
|
|
|
10,800 |
|
|
|
|
|
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(547,300 |
) |
|
|
(385,600 |
) |
Inventory |
|
(182,300 |
) |
|
|
(608,900 |
) |
Other current assets |
|
(342,700 |
) |
|
|
9,700 |
|
Right of use asset – operating leases |
|
554,400 |
|
|
|
258,200 |
|
Right of use asset – finance lease |
|
47,600 |
|
|
|
35,700 |
|
Other assets |
|
(1,670,200 |
) |
|
|
(100,000 |
) |
Accounts payable, accrued expenses and other |
|
(992,400 |
) |
|
|
(2,339,200 |
) |
Operating lease liability |
|
(584,000 |
) |
|
|
(248,800 |
) |
Deferred revenue |
|
1,911,800 |
|
|
|
1,879,000 |
|
Other liabilities |
|
38,000 |
|
|
|
(14,300 |
) |
Net cash used in
operating activities |
$ |
(9,028,900 |
) |
|
$ |
(6,039,600 |
) |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
Purchases of short-term
investments |
|
(35,963,100 |
) |
|
|
(1,001,100 |
) |
Maturities of short-term
investments |
|
16,000,000 |
|
|
|
2,500,000 |
|
Purchases of property and
equipment |
|
(1,271,100 |
) |
|
|
(1,049,900 |
) |
Proceeds from sale of
equipment |
|
4,600 |
|
|
|
- |
|
Net cash (used in) provided by investing activities |
|
(21,229,600 |
) |
|
|
449,000 |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Net proceeds from issuance of
common stock |
|
51,808,900 |
|
|
|
28,567,200 |
|
Borrowings under notes
payable |
|
— |
|
|
|
1,440,000 |
|
Principal payments on notes
payable |
|
(4,922,400 |
) |
|
|
(1,440,000 |
) |
Proceeds from exercise of
stock options |
|
2,089,300 |
|
|
|
— |
|
Principal payments on finance
leases |
|
(49,300 |
) |
|
|
(15,700 |
) |
Net cash provided by financing activities |
|
48,926,500 |
|
|
|
28,551,500 |
|
Net increase (decrease) in
cash and cash equivalents |
|
18,668,000 |
|
|
|
22,960,900 |
|
Cash and cash equivalents,
beginning of period |
|
18,755,200 |
|
|
|
15,210,800 |
|
Cash and cash equivalents, end
of period |
$ |
37,423,200 |
|
|
$ |
38,171,700 |
|
|
|
|
|
|
|
|
|
MaxCyte, Inc. |
Unaudited Revenue by Market (in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Cell Therapy |
$ |
4,766 |
|
|
$ |
2,999 |
|
|
$ |
9,494 |
|
|
$ |
6,188 |
|
Drug Discovery |
|
1,838 |
|
|
|
1,150 |
|
|
|
3,601 |
|
|
|
2,950 |
|
Program-related |
|
504 |
|
|
|
1,002 |
|
|
|
508 |
|
|
|
1,754 |
|
Total
Revenue |
$ |
7,108 |
|
|
$ |
5,150 |
|
|
$ |
13,603 |
|
|
$ |
10,892 |
|
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