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 third quarter ended September
30, 2021 financial results.
Third Quarter and Recent
Highlights
- Total revenue was $10.1 million in
the third quarter of 2021, representing 50% growth compared to the
same period in 2020.
- Excluding Strategic Platform
License (SPL) Program-related revenue, revenue from cell therapy
customers was $6.2 million for the third quarter, an increase of
38% compared to the same period in 2020.
- SPL Program-related revenue was
$2.0 million in the third quarter -- the highest SPL
Program-related revenue we have received in any quarter to-date --
as compared to $0.3 million for the same period in 2020.
- Revenue from drug discovery
customers was $1.9 million in the third quarter, a decrease of 5%
compared to the same period in 2020, but up sequentially from the
second quarter of 2021.
- With the addition of Myeloid
Therapeutics, Inc., Celularity, Inc., Sana Biotechnology, Inc., and
Nkarta, Inc. signed year-to-date, the total number of SPLs now
stands at 15.
“We are pleased to report very strong third quarter results
driven by ongoing strength in sales to cell therapy customers and
robust SPL Program-related revenue.” said Doug Doerfler,
President and CEO of MaxCyte.
“We continue to expand our customer base and
increase the number of strategic partnerships, now with 15 SPL
agreements in place following the announcement of our agreement
with Nkarta in early November. The vast majority of our SPL
agreements enable MaxCyte to participate in pre-commercial
milestones and post-commercial sales-based payments on SPL-related
Programs. We remain bullish around the potential for our SPL
partnerships to generate meaningful revenue for the business over
the next 12 to 18 months and beyond as our partners continue to see
clinical success.
We are also making important and strategic
investments in our business, expanding our marketing, R&D and
product development capabilities, launching innovative solutions to
drive future growth, bolstering our leading internal and
field-based cell engineering expertise, expanding our manufacturing
capabilities as our customers move closer to commercialization, and
adding strong talent across all facets of our business.”
“Overall, MaxCyte remains well-positioned to
support growing adoption of the ExPERT™ platform technology for
cellular-based research and next-generation therapeutic
development.”
Third Quarter Financial
Results
Total revenue for the third quarter of 2021 was
$10.1 million, compared to $6.8 million in the third quarter of
2020, representing growth of 50%. Sales to cell therapy customers,
across both instruments and single use disposables, were
collectively up 38% compared to the same period last year.
Success in recognizing revenue from our SPL Programs was also a
primary source of strength in the quarter. The Company recognized
$2.0 million in SPL Program-related revenue in the quarter
(comprised of pre-commercial milestone revenues) as compared to
$0.3 million in SPL Program-related revenue in the third quarter of
2020.
Gross profit for the third quarter of 2021 was
$9.2 million (91% gross margin), compared to $6.0 million (89%
gross margin) in the same period of the prior year. The increase in
gross margin was driven by the higher SPL Program-related revenues;
excluding SPL Program-related revenues, gross margin was relatively
unchanged.
Operating expenses for the third quarter of 2021
were $11.6 million, compared to operating expenses of $8.9 million
in the third quarter of 2020. The overall increase in operating
expense was principally driven by a $3.4 million increase in
compensation expense associated with increased headcount and higher
stock-based compensation (principally due to stock-price
appreciation), as well as a $1.2 million increase in legal, public
company and professional service expenses.
Partially offsetting this expense growth was a
$2.5 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.
Third quarter 2021 net loss was ($2.7) million
compared to net loss of ($3.1) million for the same period in
2020.
Total cash, cash equivalents and short-term
investments were $255.9 million as of September 30, 2021.
Preliminary 2021 Revenue
We are updating our revenue projection for
fiscal year 2021. We now expect to achieve at least $33.0 million
in revenue for fiscal year 2021, up from our prior guidance of
greater than $30 million in revenue for the year.
Executive Leadership
Addition
James Lovgren has joined MaxCyte as Senior Vice
President of Global Marketing. Mr. Lovgren brings deep experience
in cell therapy to the role, where he will help grow adoption of
the MaxCyte ExPERT™ platform in cellular-based research and
next-generation drug development. Most recently, Mr. Lovgren served
as Vice President at Berkeley Lights, where he was responsible for
cell therapy strategy, including product development and marketing.
Previously, he served as General Manager at Thermo Fisher
Scientific in the cell and gene therapy business, overseeing the
launch of several strategic products. He also held leadership
positions at Minerva Biotechnologies, ORGN3N and Life Technologies.
Mr. Lovgren earned his master’s degree in business administration
at North Carolina State University and his bachelor’s degree in
biology at University of North
Florida. Webcast
and Conference Call Details
MaxCyte will host a conference call today,
November 10, 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: 5098687. A live and archived webcast of
the event will be available on the “Events” section of the MaxCyte
website at https://investors.maxcyte.com/.
Form 10-Q
MaxCyte expects to file its Quarterly Report on
Form 10-Q for the period ended September 30, 2021 with the SEC on
November 10, 2021. When filed, a copy of the Form 10-Q will be
available on the SEC’s website at www.sec.gov and will also be
available under the “SEC filings” page of the Investors section of
the Company's website, 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 20 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 disposable
processing assemblies; 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 adoption
of the ExPERT™ platform, expansion of and revenue from our SPL
Programs and 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.
MaxCyte Contacts:
US IR Adviser |
+1 415-937-5400 |
Gilmartin
Group |
ir@maxcyte.com |
David Deuchler, CFA |
|
|
|
Nominated Adviser and
Joint Corporate Broker |
|
Panmure Gordon |
+44 (0)20 7886 2500 |
Emma Earl / Freddy
Crossley |
|
Corporate Broking |
|
Rupert Dearden |
|
|
|
|
|
UK IR
Adviser |
+44 (0)203 709 5700 |
Consilium Strategic
Communications |
maxcyte@consilium-comms.com |
Mary-Jane Elliott |
|
Chris Welsh |
|
MaxCyte, Inc.Condensed Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2021 |
|
|
2020 |
|
|
|
|
(Unaudited) |
|
|
(Note 2) |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
58,973,500 |
|
|
$ |
18,755,200 |
|
Short-term investments, at
amortized cost |
|
|
196,914,700 |
|
|
|
16,007,500 |
|
Accounts receivable, net |
|
|
5,958,100 |
|
|
|
5,171,900 |
|
Inventory, net |
|
|
4,148,400 |
|
|
|
4,315,800 |
|
Other current assets |
|
|
3,541,900 |
|
|
|
1,003,000 |
|
Total current
assets |
|
|
269,536,600 |
|
|
|
45,253,400 |
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
6,810,100 |
|
|
|
4,546,200 |
|
Right of use asset - operating
leases |
|
|
1,025,100 |
|
|
|
1,728,300 |
|
Right of use asset - finance
leases |
|
|
- |
|
|
|
218,300 |
|
Other assets |
|
|
318,100 |
|
|
|
33,900 |
|
Total
assets |
|
$ |
277,689,900 |
|
|
$ |
51,780,100 |
|
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
723,300 |
|
|
$ |
890,200 |
|
Accrued expenses and
other |
|
|
4,955,800 |
|
|
|
5,308,500 |
|
Operating lease liability,
current |
|
|
572,300 |
|
|
|
572,600 |
|
Deferred revenue, current
portion |
|
|
6,325,800 |
|
|
|
4,843,000 |
|
Total current
liabilities |
|
|
12,577,200 |
|
|
|
11,614,300 |
|
|
|
|
|
|
|
|
Note payable, net of discount,
and deferred fees |
|
|
— |
|
|
|
4,917,000 |
|
Operating lease liability, net
of current portion |
|
|
500,200 |
|
|
|
1,234,600 |
|
Other liabilities |
|
|
496,600 |
|
|
|
788,800 |
|
Total
liabilities |
|
|
13,574,000 |
|
|
|
18,554,700 |
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 7) |
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
Common stock, $0.01 par value;
200,000,000 shares authorized, 100,434,032 and 77,382,473 shares
issued and outstanding at September 30, 2021 and
December 31, 2020, respectively |
|
|
1,004,300 |
|
|
|
773,800 |
|
Additional paid-in
capital |
|
|
372,541,700 |
|
|
|
127,673,900 |
|
Accumulated deficit |
|
|
(109,430,100 |
) |
|
|
(95,222,300 |
) |
Total stockholders’
equity |
|
|
264,115,900 |
|
|
|
33,225,400 |
|
Total liabilities and
stockholders’ equity |
|
$ |
277,689,900 |
|
|
$ |
51,780,100 |
|
MaxCyte, Inc.Unaudited Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Revenue |
|
$ |
10,139,100 |
|
|
$ |
6,762,600 |
|
|
$ |
23,742,100 |
|
|
$ |
17,654,900 |
|
|
Cost of goods
sold |
|
|
943,800 |
|
|
|
734,800 |
|
|
|
2,421,500 |
|
|
|
1,860,100 |
|
|
Gross
profit |
|
|
9,195,300 |
|
|
|
6,027,800 |
|
|
|
21,320,600 |
|
|
|
15,794,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
2,774,800 |
|
|
|
4,517,900 |
|
|
|
12,058,000 |
|
|
|
12,852,800 |
|
|
Sales and marketing |
|
|
3,211,500 |
|
|
|
2,039,000 |
|
|
|
8,913,500 |
|
|
|
5,933,000 |
|
|
General and
administrative |
|
|
5,651,900 |
|
|
|
2,313,200 |
|
|
|
13,582,500 |
|
|
|
5,684,200 |
|
|
Total operating
expenses |
|
|
11,638,200 |
|
|
|
8,870,100 |
|
|
|
34,554,000 |
|
|
|
24,470,000 |
|
|
Operating
loss |
|
|
(2,442,900 |
) |
|
|
(2,842,300 |
) |
|
|
(13,233,400 |
) |
|
|
(8,675,200 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense |
|
|
(289,000 |
) |
|
|
(263,200 |
) |
|
|
(1,044,400 |
) |
|
|
(545,000 |
) |
|
Interest income |
|
|
51,500 |
|
|
|
6,800 |
|
|
|
70,000 |
|
|
|
55,500 |
|
|
Total other income
(expense) |
|
|
(237,500 |
) |
|
|
(256,400 |
) |
|
|
(974,400 |
) |
|
|
(489,500 |
) |
|
Provision for income
taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net loss |
|
$ |
(2,680,400 |
) |
|
$ |
(3,098,700 |
) |
|
$ |
(14,207,800 |
) |
|
$ |
(9,164,700 |
) |
|
Basic and diluted net
loss per share |
|
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.14 |
) |
|
Weighted average
shares outstanding, basic and diluted |
|
|
84,706,516 |
|
|
|
77,085,305 |
|
|
|
87,178,217 |
|
|
|
66,812,252 |
|
|
MaxCyte, Inc.Unaudited Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2021 |
|
|
2020 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(14,207,800 |
) |
|
$ |
(9,164,700 |
) |
|
|
|
|
|
|
|
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,007,400 |
|
|
|
768,500 |
|
Net book value of consigned equipment sold |
|
|
39,200 |
|
|
|
35,700 |
|
Loss on disposal of fixed assets |
|
|
18,500 |
|
|
|
6,500 |
|
Fair value adjustment of liability classified warrant |
|
|
645,400 |
|
|
|
199,400 |
|
Stock-based compensation |
|
|
5,510,400 |
|
|
|
1,704,600 |
|
Bad debt recovery |
|
|
- |
|
|
|
(117,200 |
) |
Amortization of discounts on short-term investments |
|
|
(39,500 |
) |
|
|
(5,300 |
) |
Noncash interest expense |
|
|
5,400 |
|
|
|
16,300 |
|
|
|
|
|
|
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(786,200 |
) |
|
|
(379,200 |
) |
Inventory |
|
|
(300,200 |
) |
|
|
(782,200 |
) |
Other current assets |
|
|
(2,538,900 |
) |
|
|
(357,000 |
) |
Right of use asset – operating leases |
|
|
858,000 |
|
|
|
390,200 |
|
Right of use asset – finance lease |
|
|
63,500 |
|
|
|
59,600 |
|
Other assets |
|
|
(284,200 |
) |
|
|
(33,900 |
) |
Accounts payable, accrued expenses and other |
|
|
(431,350 |
) |
|
|
(548,900 |
) |
Operating lease liability |
|
|
(734,700 |
) |
|
|
(278,600 |
) |
Deferred revenue |
|
|
1,482,800 |
|
|
|
1,461,300 |
|
Other liabilities |
|
|
(27,100 |
) |
|
|
155,000 |
|
Net cash used in operating
activities |
|
|
(9,719,350 |
) |
|
|
(6,869,900 |
) |
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of short-term
investments |
|
|
(202,867,700 |
) |
|
|
(16,988,400 |
) |
Maturities of short-term
investments |
|
|
22,000,000 |
|
|
|
2,500,000 |
|
Purchases of property and
equipment |
|
|
(2,712,050 |
) |
|
|
(1,713,300 |
) |
Proceeds from sale of
equipment |
|
|
4,600 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(183,575,150 |
) |
|
|
(16,201,700 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Net proceeds from issuance of
common stock |
|
|
236,077,300 |
|
|
|
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 |
|
|
2,424,000 |
|
|
|
285,900 |
|
Principal payments on finance
leases |
|
|
(66,100 |
) |
|
|
(39,500 |
) |
Net cash provided by financing activities |
|
|
233,512,800 |
|
|
|
28,813,600 |
|
Net increase in cash and cash
equivalents |
|
|
40,218,300 |
|
|
|
5,742,000 |
|
Cash and cash equivalents,
beginning of period |
|
|
18,755,200 |
|
|
|
15,210,800 |
|
Cash and cash equivalents, end
of period |
|
$ |
58,973,500 |
|
|
$ |
20,952,800 |
|
|
|
|
|
|
|
|
MaxCyte, Inc. |
Unaudited Revenue by Market (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Cell Therapy |
|
|
$ |
6,226 |
|
$ |
4,509 |
|
$ |
15,721 |
|
$ |
10,697 |
Drug Discovery |
|
|
|
1,909 |
|
|
2,002 |
|
|
5,510 |
|
|
4,952 |
Program-related |
|
|
|
2,004 |
|
|
252 |
|
|
2,512 |
|
|
2,005 |
Total
Revenue |
|
|
$ |
10,139 |
|
$ |
6,763 |
|
$ |
23,742 |
|
$ |
17,655 |
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