TIDMMXCT TIDMTTM
RNS Number : 6718F
MaxCyte, Inc.
23 March 2022
MaxCyte Reports Fourth Quarter and Full Year Financial
Results
MaxCyte Provides Initial 2022 Guidance
GAITHERSBURG, MD, March 23, 2022 - MaxCyte, Inc., (NASDAQ: MXCT;
LSE: MXCT) 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 . The Company today
announced fourth quarter and full year ended December 31, 2021
financial results and provided initial 2022 revenue guidance.
Fourth Quarter and Year Highlights
-- Record quarterly revenue of $10.2 million up 19% over Q4 2020
was driven by strength in the core business; with growth in core
business revenue from cell therapy customers of 43% and drug
discovery customers of 32% .
-- Record full-year total revenue of $33.9 million, up 30% over
2020, which was driven by total growth in core business revenues of
37%. We generated a total of $2.5 million in SPL Program-related
revenue for the full year 2021.
-- 2022 initial guidance includes expectations for core revenue
growth of 22% to 25% over 2021 and SPL Program-related revenue of
approximately $4 million.
-- Conference call begins at 4:30 p.m. Eastern time today.
"We are pleased to report very strong fourth quarter and full
year results driven by ongoing strength in sales to cell therapy
customers," said Doug Doerfler, President and CEO of MaxCyte. "2021
was an excellent year at MaxCyte, as we completed our Nasdaq
listing and made important and strategic investments in our
business, which are ongoing. We continue to expand our customer
base and increase the number of strategic partnerships, now with 16
SPL agreements in place following the announcement of our agreement
with Intima Bioscience in February 2022. Overall, MaxCyte remains
well-positioned to support growing adoption of the ExPERT(TM)
platform technology for cellular-based research and next-generation
therapeutic development."
The following table provides details regarding the sources of
our revenue for the periods presented.
Three Months Ended Year Ended
December 31, December 31,
(Unaudited) (Unaudited)
---------------------- ------- ------------------ ------
2021 2020 % 2021 2020 %
------------ -------- ------- -------- -------- ------
(in thousands, except
percentages)
Cell therapy $ 7,264 $ 5,072 43% $ 22,984 $ 15,769 46%
Drug discovery 2,885 2,191 32% 8,395 7,143 18%
Program-related 3 1,252 (100)% 2,515 3,257 (23)%
-------- ------- ------- -------
Total revenue $ 10,152 $ 8,515 19% $ 33,894 $ 26,169 30%
======== ======= ======= =======
Operational Highlights
-- With the addition of Myeloid Therapeutics, Inc., Celularity,
Inc., Sana Biotechnology, Inc., and Nkarta, Inc. signed in 2021,
and Intima Bioscience signed in early 2022, the total number of
Strategic Platform Licenses (SPLs) signed with our cell therapy
partners now stands at 16.
-- Our 16 active SPL partner agreements now allow an aggregate
of over 95 potential programs; over 15% of these have entered in
the clinic (defined as programs as with at least a cleared IND, or
equivalent). If all allowed programs successfully progress though
the clinic to commercial approval, we have the potential to
generate pre-commercial milestones of over $1.25 billion before
potential sales-based commercial revenue to MaxCyte. This compares
to the update from the prior year (January 2021) of 12 SPLs
covering over 75 programs (with total potential pre-commercial
milestones exceeding $950 million), over 15% of which had entered
the clinic.
-- We closed 2021 with over 500 instruments placed with
customers, compared to over 400 instruments as of the end of
2020.
-- We successfully released the VLx under our ExPERT platform,
our large-scale Flow Electroporation platform under the ExPERT
brand; we have seen strong initial interest from prospects in using
the VLx for large-scale bioprocessing applications.
-- Dr. Cenk Sumen, Ph.D. recently joined our team as Chief
Scientific Officer. Dr Sumen was previously CTO at Stemson
Therapeutics and holds a Ph.D. in Microbiology and Immunology from
Stanford University, completed his post-doctoral training at
Harvard and a fellowship at the Cancer Research Institute and
worked at Memorial Sloan Kettering Cancer Center under Nobel
Laureate Dr. Jim Allison.
-- We also launched three new processing assemblies (our
single-use disposables), the R50x3, the R50x8 and the G1000, which
were directly targeted to both research and GMP customer needs and
contributed to our growth in fiscal 2021; particularly in the
fourth quarter.
-- Finally, we are on track to move into our new corporate
headquarters facility in 2022, which includes new office space,
expanded applications and process development lab facilities, and
more than tripling of our manufacturing space.
As of the dates presented, our key metrics described above were
as follows:
As of December 31,
--------------------------------------------
2021 2020* 2019
-------------- ------------- -------------
Installed base of instruments (sold or leased) >500 >400 >320
Number of active SPLs 15 12 8
Total number of licensed clinical programs (SPLs only) >95 >75 >55
Total number of licensed clinical programs under SPLs currently in the
clinic ** >15% >15% >5%
Total potential pre-commercial milestones under SPLs >$1.25 billion >$950 million >$650 million
* Amounts presented as of December 31, 2020, give effect to one
SPL entered into and additional INDs cleared in January 2021.
** Number of licensed clinical programs under SPLs are by number
of product candidates and not by indication.
Fourth Quarter and Full Year 2021 Financial Results
Total revenue for the fourth quarter of 2021 was $10.2 million,
compared to $8.5 million in the fourth quarter of 2020,
representing growth of 19%. Revenue from cell therapy customers
were collectively up 43% before program-related revenues compared
to the same period last year.
Our SPL partners did not achieve any milestone events in the
fourth quarter and thus there was no SPL Program-related revenue in
the quarter, as compared to $1.3 million in SPL Program-related
revenue in the fourth quarter of 2020.
Gross profit for the fourth quarter of 2021 was $8.9 million
(88% gross margin), compared to $7.6 million (89% gross margin) in
the same period of the prior year. The decrease in gross margin was
driven by the lower SPL Program-related revenues; excluding SPL
Program-related revenues, gross margin was relatively
unchanged.
Operating expenses for the fourth quarter of 2021 were $13.9
million, compared to operating expenses of $10.0 million in the
fourth quarter of 2020. The overall increase in operating expenses
was primarily driven by increased headcount across all areas of the
business and an increase in stock-based compensation.
Fourth quarter 2021 net loss was $4.9 million compared to net
loss of $2.7 million for the same period in 2020; EBITDA, a
non-GAAP measure, was a loss of $4.5 million for the fourth quarter
2021, compared to a loss of $2.3 million for the fourth quarter of
prior year; stock-based compensation expense was $2.4 million
versus $0.8 million for the same period in the prior year.
Full Year Financial Results
Total revenue for 2021 was $33.9 million, compared to $26.2
million in 2020, representing growth of 30%. The increase was
primarily driven by growth in sales and licenses of instruments and
sales of disposables to cell therapy customers.
The Company recognized $2.5 million in SPL Program-related
revenue during 2021 (comprised of pre-commercial milestone
revenues) as compared to $3.3 million in SPL Program-related
revenue in 2020.
Gross profit for 2021 was $30.2 million (89% gross margin),
compared to $23.4 million (89% gross margin) in the prior year.
Operating expenses for 2021 were $48.4 million, compared to
operating expenses of $34.5 million in 2020. The overall increase
in operating expenses was principally driven by an increase in
expenses associated with increased headcount, increased stock-based
compensation, and increased expenses due to our recent NASDAQ
public listing. Partially offsetting this expense increase was a
$5.8 million decline in CARMA(TM)-related expenses compared with
last year. The Company had no material CARMA(TM) related expenses
after March 2021.
Full year 2021 net loss was $19.1 million compared to a loss of
$11.8 million in 2020; full year 2021 EBTIDA was a loss of $17.4
million versus a loss of $10.4 million for the prior year; total
stock-based compensation for the full year was $8.0 million versus
$2.5 million for the prior year.
Total cash, cash equivalents and short-term investments were
$255.0 million as of December 31, 2021.
2022 Revenue Guidance
Management is providing initial 2022 revenue guidance based on
our expectations for the existing business.
We expect revenue from our core business (instruments and
disposables to cell therapy and drug discovery customers) to grow
between 22% and 25% over 2021. We also expect SPL Program-related
revenue to be approximately $4 million in 2022.
We intend to provide more context for the trajectory of our SPL
Program-related revenue on the earnings call (details below).
Webcast and Conference Call Details
MaxCyte will host a conference call today, March 22, 2022, at
4:30 p.m. Eastern Time. Interested parties may access the live
teleconference by dialing (844) 679-0933 for domestic callers,
(918) 922-6914 for international callers, for 0203 1070 289 U.K
domestic callers, or for 0800 0288 438 U.K. international callers
followed by Conference ID: 2675034. A live and archived webcast of
the event will be available on the "Events" section of the MaxCyte
website at https://investors.maxcyte.com/ .
Non-GAAP Financial Measures
This press release contains EBITDA, which is a non-GAAP measure
defined as net loss excluding depreciation, amortization, income
tax (benefit) expense and net interest expense. 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 the non-GAAP measure in isolation
or as an alternative to financial measures determined in accordance
with GAAP. The principal limitation of the non-GAAP financial
measure 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 the
non-GAAP financial measure 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 tables of the
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.
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(R) platform, which facilitates complex engineering
of a wide variety of cells. Our ExPERT(TM) 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(TM), STx(TM) GTx(TM)
and VLx(TM); 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 adoption of the
ExPERT(TM) 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 Annual Report on Form 10-K for the
year ended December 31, 2021, to be 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
ir@maxcyte.com
Gilmartin Group
David Deuchler, CFA
US Media Relations
Valerie Enes
Seismic
Nominated Adviser and Joint Corporate Broker +1 408-497-8568
Panmure Gordon
Emma Earl / Freddy Crossley
Corporate Broking
Rupert Dearden +44 (0)20 7886 2500
UK IR Adviser
Consilium Strategic Communications +44 (0)203 709 5700
Mary-Jane Elliott maxcyte@consilium-comms.com
Chris Welsh
MaxCyte, Inc.
Unaudited Consolidated Balance Sheets
December 31,
-------------------------------
2021 2020
--------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 47,782,400 $ 18,755,200
Short-term investments, at amortized cost 207,261,400 16,007,500
Accounts receivable, net 6,877,000 5,171,900
Inventory 5,204,600 4,315,800
Prepaid expenses and other current assets 3,307,400 1,003,000
-------------- -------------
Total current assets 270,432,800 45,253,400
Property and equipment, net 7,681,200 4,546,200
Right of use asset - operating leases 5,689,300 1,728,300
Right of use asset - finance leases - 218,300
Other assets 316,700 33,900
-------------- -------------
Total assets $ 284,120,000 $ 51,780,100
============== =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,820,300 $ 890,200
Accrued expenses and other 6,523,500 5,308,500
Operating lease liability, current 527,200 572,600
Deferred revenue, current portion 6,746,800 4,843,000
-------------- -------------
Total current liabilities 15,617,800 11,614,300
Note payable, net of discount, and deferred fees - 4,917,000
Operating lease liability, net of current portion 5,154,900 1,234,600
Other liabilities 450,200 788,800
-------------- -------------
Total liabilities 21,222,900 18,554,700
-------------- -------------
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.01 par value; 5,000,000 and no shares authorized at
December 31, 2021
and 2020, respectively; no shares issued and outstanding - -
Common stock, $0.01 par value; 400,000,000 and 200,000,000 shares authorized,
101,202,705
and 77,382,473 shares issued and outstanding at December 31, 2021 and 2020,
respectively 1,012,000 773,800
Additional paid-in capital 376,189,600 127,673,900
Accumulated deficit (114,304,500) (95,222,300)
-------------- -------------
Total stockholders' equity 262,897,100 33,225,400
-------------- -------------
Total liabilities and stockholders' equity $ 284,120,000 $ 51,780,100
============== =============
MaxCyte, Inc.
Unaudited Consolidated Statements of Operations
Three Months Ended December Year Ended December
31, 31,
------------------------------- ------------------------------
2021 2020 2021 2020
---------------- ------------- -------------- --------------
Revenue $ 10,152,000 $ 8,514,000 $ 33,894,100 $ 26,168,900
Cost of goods sold 1,225,900 906,900 3,647,400 2,767,000
------------ ------------ ------------- -------------
Gross profit 8,926,100 7,607,100 30,246,700 23,401,900
------------ ------------ ------------- -------------
Operating expenses:
Research and development 3,381,000 4,893,000 15,407,300 17,734,800
Sales and marketing 4,089,400 2,395,700 13,002,900 8,328,700
General and administrative 5,969,000 2,370,200 18,676,000 7,370,000
Depreciation and amortization 441,900 329,700 1,349,100 1,025,100
------------ ------------ ------------- -------------
Total operating expenses 13,881,300 9,988,600 48,435,300 34,458,600
------------ ------------ ------------- -------------
Operating loss (4,955,200) (2,381,500) (18,188,600) (11,056,700)
------------ ------------ ------------- -------------
Other income (expense):
Interest and other
expense - (280,600) (1,044,400) (825,600)
Interest income 80,800 10,400 150,800 65,900
------------ ------------ ------------- -------------
Total other income
(expense) 80,800 (270,200) (893,600) (759,700)
------------ ------------ ------------- -------------
Provision for income
taxes - - - -
------------ ------------ ------------- -------------
Net loss $ (4,874,400) $ (2,651,700) $ (19,082,200) $ (11,816,400)
============ ============ ============= =============
Basic and diluted net
loss per share $ (0.05) $ (0.03) $ (0.21) $ (0.17)
============ ============ ============= =============
Weighted average shares
outstanding, basic
and diluted 100,829,377 77,364,583 90,619,057 69,464,751
============ ============ ============= =============
MaxCyte, Inc.
Unaudited Consolidated Statements of Cash Flows
Year Ended December 31,
-------------------------------
2021 2020
--------------- --------------
Cash flows from operating activities:
Net loss $ (19,082,200) $ (11,816,400)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 1,423,900 1,047,700
Net book value of consigned equipment sold 51,600 79,900
Loss on disposal of fixed assets 32,500 25,900
Fair value adjustment of liability classified warrant 645,400 366,500
Stock-based compensation 7,958,800 2,471,800
Bad debt (recovery) expense - (117,200)
Amortization of discounts on short-term investments (70,300) (3,800)
Non-cash interest expense 5,400 21,700
Changes in operating assets and liabilities:
Accounts receivable (1,705,100) (1,810,200)
Inventory (1,405,800) (890,600)
Other current assets (2,304,400) (205,900)
Right of use asset - operating leases (3,806,200) 525,000
Right of use asset - finance lease 63,500 83,400
Other assets (282,800) (33,900)
Accounts payable, accrued expenses and other 2,090,900 391,000
Operating lease liability 3,874,900 (508,800)
Deferred revenue 1,903,800 1,649,800
Other liabilities (73,500) (58,000)
-------------- -------------
Net cash used in operating activities (10,679,600) (8,782,100)
-------------- -------------
Cash flows from investing activities:
Purchases of short-term investments (268,683,600) (22,505,900)
Maturities of short-term investments 77,500,000 8,000,000
Purchases of property and equipment (3,834,200) (2,072,100)
Proceeds from sale of equipment 4,600 -
-------------- -------------
Net cash (used in) provided by investing activities (195,013,200) (16,578,000)
-------------- -------------
Cash flows from financing activities:
Net proceeds from issuance of common stock 51,808,900 28,567,200
Net proceeds from issuance of common stock upon initial public offering 184,268,400 -
Borrowings under notes payable - 1,440,000
Principal payments on notes payable (4,922,400) (1,440,000)
Proceeds from exercise of stock options 3,631,200 401,000
Principal payments on finance leases (66,100) (63,700)
-------------- -------------
Net cash provided by financing activities 234,720,000 28,904,500
-------------- -------------
Net increase in cash and cash equivalents 29,027,200 3,544,400
Cash and cash equivalents, beginning of year 18,755,200 15,210,800
-------------- -------------
Cash and cash equivalents, end of year $ 47,782,400 $ 18,755,200
============== =============
Unaudited Reconciliation of Net Loss to EBITDA
Three Months Ended Year Ended
December 31, December 31,
-------------------- ----------------------
2021 2020 2021 2020
--------- --------- ---------- ----------
(in thousands)
Net loss $ (4,874) $ (2,652) $ (19,082) $ (11,816)
Depreciation and amortization expense 417 279 1,424 1,047
Interest expense, net (81) 100 239 387
Income taxes - - - -
-------- -------- --------- ---------
EBITDA $ (4,538) $ (2,273) $ (17,419) $ (10,382)
======== ======== ========= =========
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