MaxCyte, Inc., (NASDAQ: MXCT; LSE: MXCT), 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 financial results for the second
quarter and six months ended June 30, 2022.
Second Quarter and Recent
Highlights
- Total revenue of $9.6 million in
the second quarter of 2022, an increase of 35% over the second
quarter of 2021 driven by strong growth in the cell therapy market;
core business revenues grew 45% led by revenue from cell therapy
customers which increased 61%, with drug discovery revenues growing
by 4%.
- Raising 2022 revenue guidance for
core business revenue growth to approximately 30%.
- Expecting SPL Program-related
revenue to be approximately $4 million for the full year.
- Total cash, cash equivalents and
short-term investments were $240.9 million as of June 30,
2022.
- Signed the Company’s 17th SPL
agreement in July 2022; LG Chem licensed the use of MaxCyte’s Flow
Electroporation® ExPERT™ platform to advance cellular research and
development of engineered cell-based therapies.
“We are pleased with these strong second quarter
2022 results, with 45% year-over-year core business revenue growth,
highlighted by 61% growth in revenues from Cell Therapy customers.
We remain encouraged by the ongoing growth of our SPL portfolio
with the addition of LG Chem, our 17th SPL partner, and second SPL
agreement signed in 2022, as well as the continued progress of our
existing partnerships. Importantly, our LG Chem partnership
broadens the reach of our SPL portfolio into Asia,” said Doug
Doerfler, President and CEO of MaxCyte.
“Overall, our optimism about the potential for
the development programs covered by our existing partners to
generate growing revenue in both pre-clinical research and clinical
progress remains high. Our ExPERT™ platform continues to be used to
enable a broad range of cell types and approaches targeting a wide
array of indications, and its adoption is increasing within the
industry. We are making ongoing investments to drive revenue
growth, support and expand the widening array of applications for
our technology, while also strengthening our team and expanding our
ability to support customers through in-house manufacturing and
robust infrastructure. These investments should allow us to take
advantage of expanding markets and support our partners as they
move forward in development and commercialization.”
The following table provides details regarding the sources of
our revenue for the periods presented.
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
2022 |
|
2021 |
|
% |
|
2022 |
|
2021 |
|
% |
(in thousands, except
percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cell therapy |
$ |
7,688 |
|
|
$ |
4,766 |
|
|
61 |
% |
|
$ |
15,104 |
|
|
$ |
9,494 |
|
|
59 |
% |
Drug discovery |
|
1,916 |
|
|
|
1,838 |
|
|
4 |
% |
|
|
4,083 |
|
|
|
3,601 |
|
|
13 |
% |
Program-related |
|
4 |
|
|
|
504 |
|
|
NM |
|
|
|
2,008 |
|
|
|
508 |
|
|
295 |
% |
Total revenue |
$ |
9,608 |
|
|
$ |
7,108 |
|
|
35 |
% |
|
$ |
21,195 |
|
|
$ |
13,603 |
|
|
56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2022 Financial
Results
Total revenue for the second quarter of 2022 was
$9.6 million, compared to $7.1 million in the second quarter of
2021, representing growth of 35%.
Core business revenue was $9.6 million,
including 61% revenue growth from cell therapy customers and 4%
from drug discovery customers, compared to core business revenue of
$6.6 million in the same period last year.
We did not have any material SPL Program-related
revenue in the second quarter of 2022, as compared to $0.5 million
in the second quarter of 2021.
Gross profit for the second quarter of 2022 was
$8.5 million (88% gross margin), compared to $6.3 million (89%
gross margin) in the same period of the prior year.
Operating expenses for the second quarter of
2022 were $17.2 million, compared to operating expenses of $10.7
million in the second quarter of 2021. The overall increase in
operating expenses was primarily driven by increased staff in field
sales and science, manufacturing, and lab teams to support our
customers’ and partners’ growth. The increase also included
additional public company-related, stock-based compensation, and
marketing expenses compared with the same period a year ago.
Second quarter 2022 net loss was $8.3 million
compared to net loss of $4.4 million for the same period in 2021.
EBITDA, a non-GAAP measure, was a loss of $8.2 million for the
second quarter of 2022, compared to a loss of $4.1 million for the
second quarter of the prior year. Stock-based compensation expense
was $3.0 million for the second quarter versus $1.9 million for the
same period in the prior year.
Total cash, cash equivalents and short-term
investments were $240.9 million as of June 30, 2022.
First Half 2022 Financial
Results
Total revenue for the first half of 2022 was
$21.2 million, compared to $13.6 million in the first half of 2021,
representing growth of 56%. Overall sales to the cell therapy (up
59%) and the drug discovery (up 13%) markets were sources of
strength in the first half.
The Company recognized $2.0 million of
program-related revenue in the first half of 2022, as compared to
$0.5 million in program-related revenue in the first half of
2021.
Gross profit for the first half of 2022 was
$19.0 million (90% gross margin), compared to $12.1 million (89%
gross margin) in the same period of the prior year.
Operating expenses for the first half of 2022
were $31.9 million, compared to operating expenses of $22.9 million
in the first half of 2021. The overall increase in operating
expenses was primarily driven by increased staff in field sales and
science, manufacturing, and lab teams to support our customers’ and
partners’ growth. The increase also included additional stock-based
compensation, public company-related, and marketing expenses
compared with the same period a year ago.
First half 2022 net loss was $12.3 million
compared to net loss of $11.5 million for the same period in 2021.
EBITDA was a loss of $11.9 million for the first half of 2022,
compared to a loss of $10.5 million for the same period of the
prior year. Stock-based compensation expense was $5.4 million for
the first half of 2022 versus $3.2 million for the same period in
the prior year.
2022 Revenue Guidance
We expect core business revenue (instruments and
disposables to cell therapy and drug discovery customers and
excluding program-related revenue) in 2022 to grow approximately
30% compared to 2021. We continue to expect SPL Program-related
revenue to be approximately $4 million in 2022.
Webcast and Conference Call
Details
MaxCyte will host a conference call today,
August 10, 2022, at 4:30 p.m. Eastern Time. Investors interested in
listening to the conference call are required to register online. 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 20 years, we have developed and commercialized our
proprietary Flow Electroporation® technology, 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: four instruments, the ATx™,
STx™ GTx™ and VLx™; a portfolio of proprietary related processing
assemblies or disposables; and software protocols, all supported by
a robust worldwide intellectual property portfolio.
Non-GAAP Financial Measures
This press release contains EBITDA, which is a
non-GAAP measure defined as earnings, before interest, tax,
depreciation and amortization. MaxCyte believes that EBITDA
provides useful information to management and investors relating to
its results of operations. The company’s management uses this
non-GAAP measure to compare the company’s performance to that of
prior periods for trend analyses, and for budgeting and planning
purposes. The company believes that the use of EBITDA provides an
additional tool for investors to use in evaluating ongoing
operating results and trends and in comparing the company’s
financial measures with other companies, many of which present
similar non-GAAP financial measures to investors, and that it
allows for greater transparency with respect to key metrics used by
management in its financial and operational decision-making.
Management does not consider EBITDA in isolation
or as an alternative to financial measures determined in accordance
with GAAP. The principal limitation of EBITDA is that it excludes
significant expenses that are required by GAAP to be recorded in
the company’s financial statements. In order to compensate for
these limitations, management presents EBITDA together with GAAP
results. Non-GAAP measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for, or superior to, GAAP results. A
reconciliation table of net loss, the most comparable GAAP
financial measure, to EBITDA is included at the end of this
release. MaxCyte urges investors to review the reconciliation and
not to rely on any single financial measure to evaluate the
company’s business.
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, 2022, 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 may impact investor
confidence in the biopharmaceutical industry affecting the amount
of capital such investors provide to our current and potential
partners resulting in decreased demand for our products. These and
other risks and uncertainties are described in greater detail in
the section entitled "Risk Factors" in our Annual Report on Form
10-K for the year ended December 31, 2021, filed with the
Securities and Exchange Commission on March 22, 2022, as well as in
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 Gilmartin Group David
Deuchler, CFA |
+1
415-937-5400 ir@maxcyte.com |
|
|
US Media
RelationsSeismicValerie Enes |
+1 408-497-8568 |
|
|
Nominated Adviser and
Joint Corporate Broker Panmure
Gordon Emma Earl / Freddy Crossley Corporate
Broking Rupert Dearden |
+44 (0)20 7886
2500 |
|
|
UK IR
AdviserConsilium Strategic
CommunicationsMary-Jane ElliottChris Welsh |
+44 (0)203 709
5700maxcyte@consilium-comms.com |
|
|
MaxCyte, Inc.Unaudited Consolidated
Balance Sheets
|
June 30, |
|
December 31, |
|
2022 |
|
2021 |
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
109,168,400 |
|
|
$ |
47,782,400 |
|
Short-term investments, at
amortized cost |
|
131,719,200 |
|
|
|
207,261,400 |
|
Accounts receivable |
|
7,432,900 |
|
|
|
6,877,000 |
|
Accounts receivable –
TIA* |
|
475,600 |
|
|
|
— |
|
Inventory |
|
7,722,000 |
|
|
|
5,204,600 |
|
Prepaid expenses and other
current assets |
|
1,311,600 |
|
|
|
3,307,400 |
|
Total current
assets |
|
257,829,700 |
|
|
|
270,432,800 |
|
|
|
|
|
|
|
Property and equipment,
net |
|
20,596,100 |
|
|
|
7,681,200 |
|
Right of use asset - operating
leases |
|
10,430,300 |
|
|
|
5,689,300 |
|
Other assets |
|
920,500 |
|
|
|
316,700 |
|
Total
assets |
$ |
289,776,600 |
|
|
$ |
284,120,000 |
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
2,456,300 |
|
|
$ |
1,820,300 |
|
Accrued expenses and
other |
|
7,901,800 |
|
|
|
6,523,500 |
|
Operating lease liability,
current |
|
438,700 |
|
|
|
527,200 |
|
Deferred revenue, current
portion |
|
7,310,600 |
|
|
|
6,746,800 |
|
Total current
liabilities |
|
18,107,400 |
|
|
|
15,617,800 |
|
|
|
|
|
|
|
Operating lease liability, net
of current portion |
|
14,053,300 |
|
|
|
5,154,900 |
|
Other liabilities |
|
393,000 |
|
|
|
450,200 |
|
Total
liabilities |
|
32,553,700 |
|
|
|
21,222,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
Preferred stock, $0.01 par
value; 5,000,000 shares authorized and no shares issued and
outstanding at June 30, 2022 and December 31, 2021 |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value;
400,000,000 shares authorized, 101,661,288 and 101,202,705 shares
issued and outstanding at June 30, 2022 and
December 31, 2021, respectively |
|
1,016,600 |
|
|
|
1,012,000 |
|
Additional paid-in
capital |
|
382,838,300 |
|
|
|
376,189,600 |
|
Accumulated deficit |
|
(126,632,000 |
) |
|
|
(114,304,500 |
) |
Total stockholders’
equity |
|
257,222,900 |
|
|
|
262,897,100 |
|
Total liabilities and
stockholders’ equity |
$ |
289,776,600 |
|
|
$ |
284,120,000 |
|
|
|
|
|
|
|
|
|
* Tenant improvement allowance (“TIA”)
MaxCyte, Inc.Unaudited Consolidated
Statements of Operations
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue |
$ |
9,607,800 |
|
|
$ |
7,108,100 |
|
|
$ |
21,195,100 |
|
|
$ |
13,602,900 |
|
Cost of goods sold |
|
1,120,400 |
|
|
|
784,500 |
|
|
|
2,183,000 |
|
|
|
1,477,600 |
|
Gross
profit |
|
8,487,400 |
|
|
|
6,323,600 |
|
|
|
19,012,100 |
|
|
|
12,125,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
4,696,000 |
|
|
|
3,203,900 |
|
|
|
8,461,200 |
|
|
|
9,280,300 |
|
Sales and marketing |
|
4,930,600 |
|
|
|
2,912,900 |
|
|
|
8,769,300 |
|
|
|
5,702,000 |
|
General and
administrative |
|
7,102,600 |
|
|
|
4,301,100 |
|
|
|
13,735,100 |
|
|
|
7,298,900 |
|
Depreciation and
amortization |
|
497,100 |
|
|
|
322,900 |
|
|
|
944,500 |
|
|
|
634,400 |
|
Total operating
expenses |
|
17,226,300 |
|
|
|
10,740,800 |
|
|
|
31,910,100 |
|
|
|
22,915,600 |
|
Operating
loss |
|
(8,738,900 |
) |
|
|
(4,417,200 |
) |
|
|
(12,898,000 |
) |
|
|
(10,790,300 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense |
|
— |
|
|
|
(13,200 |
) |
|
|
— |
|
|
|
(755,500 |
) |
Interest income |
|
478,700 |
|
|
|
8,600 |
|
|
|
570,500 |
|
|
|
18,400 |
|
Total other income
(expense) |
|
478,700 |
|
|
|
(4,600 |
) |
|
|
570,500 |
|
|
|
(737,100 |
) |
Net loss |
$ |
(8,260,200 |
) |
|
$ |
(4,421,800 |
) |
|
$ |
(12,327,500 |
) |
|
$ |
(11,527,400 |
) |
Basic and diluted net
loss per share |
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.14 |
) |
Weighted average
shares outstanding, basic and diluted |
|
101,427,430 |
|
|
|
84,706,516 |
|
|
|
101,547,583 |
|
|
|
82,865,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MaxCyte, Inc.Unaudited Consolidated
Statements of Cash Flows
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
|
|
Net loss |
$ |
(12,327,500 |
) |
|
$ |
(11,527,400 |
) |
|
|
|
|
|
|
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
1,035,000 |
|
|
|
641,400 |
|
Net book value of consigned equipment sold |
|
51,400 |
|
|
|
13,900 |
|
Loss on disposal of fixed assets |
|
— |
|
|
|
19,800 |
|
Fair value adjustment of liability classified warrant |
|
— |
|
|
|
358,200 |
|
Stock-based compensation |
|
5,435,200 |
|
|
|
3,225,000 |
|
Amortization of discounts on short-term investments |
|
(206,100 |
) |
|
|
1,900 |
|
Non-cash interest expense |
|
— |
|
|
|
5,400 |
|
|
|
|
|
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(555,900 |
) |
|
|
(547,300 |
) |
Accounts receivable - TIA |
|
(475,600 |
) |
|
|
— |
|
Inventory |
|
(2,639,500 |
) |
|
|
(182,300 |
) |
Prepaid expense and other current assets |
|
1,995,800 |
|
|
|
(342,700 |
) |
Right of use asset – operating leases |
|
(4,741,000 |
) |
|
|
554,400 |
|
Right of use asset – finance lease |
|
— |
|
|
|
47,600 |
|
Other assets |
|
(603,800 |
) |
|
|
(1,670,200 |
) |
Accounts payable, accrued expenses and other |
|
939,900 |
|
|
|
(992,400 |
) |
Operating lease liability |
|
8,809,900 |
|
|
|
(584,000 |
) |
Deferred revenue |
|
563,800 |
|
|
|
1,911,800 |
|
Other liabilities |
|
(57,200 |
) |
|
|
38,000 |
|
Net cash used in operating
activities |
|
(2,775,600 |
) |
|
|
(9,028,900 |
) |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
Purchases of short-term
investments |
|
(131,547,700 |
) |
|
|
(35,963,100 |
) |
Maturities of short-term
investments |
|
207,296,000 |
|
|
|
16,000,000 |
|
Purchases of property and
equipment |
|
(12,804,800 |
) |
|
|
(1,271,100 |
) |
Proceeds from sale of
equipment |
|
— |
|
|
|
4,600 |
|
Net cash provided by (used in) investing activities |
|
62,943,500 |
|
|
|
(21,229,600 |
) |
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Net proceeds from issuance of
common stock |
|
— |
|
|
|
51,808,900 |
|
Principal payments on notes
payable |
|
— |
|
|
|
(4,922,400 |
) |
Proceeds from exercise of
stock options |
|
1,218,100 |
|
|
|
2,089,300 |
|
Principal payments on finance
leases |
|
— |
|
|
|
(49,300 |
) |
Net cash provided by financing activities |
|
1,218,100 |
|
|
|
48,926,500 |
|
Net increase in cash and cash
equivalents |
|
61,386,000 |
|
|
|
18,668,000 |
|
Cash and cash equivalents,
beginning of period |
|
47,782,400 |
|
|
|
18,755,200 |
|
Cash and cash equivalents, end
of period |
$ |
109,168,400 |
|
|
$ |
37,423,200 |
|
|
|
|
|
|
|
|
|
Unaudited Reconciliation of Net Loss to
EBITDA
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(8,260 |
) |
|
$ |
(4,422 |
) |
|
$ |
(12,328 |
) |
|
$ |
(11,527 |
) |
Depreciation and amortization
expense |
|
548 |
|
|
|
333 |
|
|
|
1,035 |
|
|
|
641 |
|
Interest (income) expense,
net |
|
(479 |
) |
|
|
(6 |
) |
|
|
(571 |
) |
|
|
379 |
|
Income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
EBITDA |
$ |
(8,191 |
) |
|
$ |
(4,095 |
) |
|
$ |
(11,864 |
) |
|
$ |
(10,507 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maxcyte (LSE:MXCN)
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From Jun 2024 to Jul 2024
Maxcyte (LSE:MXCN)
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From Jul 2023 to Jul 2024