TIDMMXCT TIDMTTM
RNS Number : 1351T
MaxCyte, Inc.
16 March 2023
MaxCyte Reports Fourth Quarter and Full Year 2022 Financial
Results
31% Total Revenue Growth for Full Year 2022 including 26% Core
Business Revenue Growth and $4.6 million in Program-related
Revenue
ROCKVILLE, MD, March 16, 2023 - MaxCyte, Inc., (NASDAQ: MXCT;
LSE: MXCT), a leading, cell-engineering focused company providing
enabling platform technologies to advance the discovery,
development, and commercialization of next-generation cell
therapeutics and to support innovative, cell-based research ,today
announced its fourth quarter and full year ended December 31, 2022,
financial results and provided initial 2023 revenue guidance.
Fourth Quarter and Full Year Highlights
-- Total revenue of $12.4 million in the fourth quarter of 2022,
an increase of 22% over the fourth quarter of 2021.
-- Core business revenues grew 4% in the fourth quarter of 2022,
with revenue growth from cell therapy customers growing 4% and
revenue from drug discovery customers growing by 5%, over the
fourth quarter of 2021.
-- Total revenue of $44.3 million for the full year 2022, an
increase of 31% over the full year 2021.
-- Full year 2022 core business revenues grew 26%, led by cell
therapy revenue growth of 33%, and revenue from drug discovery
growing 8%.
-- Initial 2023 guidance for total revenue growth of 21% to 26%
over 2022, including core revenue growth of 20% to 25% over 2022,
and Strategic Platform License (SPL) program-related revenue of
approximately $6 million.
-- Total cash, cash equivalents and short-term investments were
$227.3 million as of December 31, 2022.
"We are pleased with our strong progress and performance in 2022
and look forward to continuing this positive momentum into 2023.
Over the course of the year, we have made significant investments
in our people, manufacturing capacity, and R&D infrastructure,
which positions us well for our next stage of growth," said Doug
Doerfler, President and CEO of MaxCyte.
"Our portfolio of partnerships continued to grow throughout
2022, having announced three new SPL partnerships as well as the
recent addition of Catamaran Bio as a partner in early 2023. We
also entered into a partnership with Vertex following the transfer
of the exa-cel program from CRISPR. The partnership maintains our
role in this program, for which Vertex is currently seeking
regulatory marketing approval in the United States and Europe for
Sickle Cell Disease and Beta-Thalassemia. We are continuing to see
our partners make strong progress across their clinical programs
and are focused on providing them with the in-house manufacturing
and regulatory support that they will require as they move towards
commercialization. Our partnership pipeline remains robust and
growing as we begin 2023 and we are excited to see our partners
achieve upcoming milestones and move the cell therapy industry
forward."
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)
---------------------- ---- ------------------ -----
2022 2021 % 2022 2021 %
------------ -------- --- -------- -------- ----
(in thousands, except
percentages)
Cell therapy $ 7,544 $ 7,264 4% $ 30,546 $ 22,984 33%
Drug discovery 3,026 2,885 5% 9,100 8,395 8%
Program-related 1,854 3 NM* 4,616 2,515 83%
-------- ------- ------- -------
Total revenue $ 12,424 $ 10,152 22% $ 44,262 $ 33,894 31%
======== ======= ======= =======
* Not Meaningful (NM)
Operational Highlights
-- Ended the year with 18 SPL partnerships, with the addition of
partnerships with Intima Bioscience, LG Chem, and Curamys in 2022.
With the addition of an SPL partnership with Catamaran Bio in early
2023, the total number of partnerships now stands at 19. Vertex
Pharmaceuticals will use MaxCyte's Flow Electroporation(R)
technology and ExPERT(TM) platform to support the gene-edited
hemoglobinopathy cell therapy exa-cel, formerly known under CRISPR
as CTX001(TM). We entered into an SPL partnership with Vertex in
2022 for this transferred program. In addition, we retained our
partnership with CRISPR therapeutics supporting CRISPR/Cas9-based
therapies in immuno-oncology.
-- As of December 31, 2022, our 18 active SPL partner agreements
allowed for over 125 potential programs; 16 of which were active
programs currently in the clinic (defined as programs with at least
a cleared IND or equivalent). If all potential programs
successfully progress through the clinic to commercial approval, we
estimate aggregate potential to generate pre-commercial milestone
payments to us of over $1.55 billion in addition to sales-based
commercial revenue due to us under existing agreements. At the end
of 2021, there were 15 SPL partnerships covering over 95 programs
with total potential pre-commercial milestones exceeding $1.25
billion.
-- As of December 31, 2022, we had over 600 instruments placed
with customers, compared to over 500 instruments at the end of
2021.
-- Launched the ExPERT branded VLx(TM), our large-scale Flow Electroporation platform.
-- Completed and occupied our new, 67,000 square foot, state of
the art headquarters in Maryland's I-270 biotech corridor,
significantly increasing our in-house manufacturing capacity, as
well as research and process development lab space.
-- Appointed Patrick J. Balthrop, Sr. to our board of directors
as a non-executive member. Mr. Balthrop will also serve on the
nominating and corporate governance committees of our board of
directors.
In addition to revenue, management regularly reviews key
business metrics to evaluate our business, measure performance,
identify trends affecting our business, formulate financial
projections and make strategic decisions. As of the dates
presented, these key metrics were as follows:
As of December 31,
---------------------------------
2022 2021 2020*
-------- -------- -------------
Installed base of instruments (sold or
leased) >600 >500 >400
Number of active SPL partnerships 18 15 12
Total number of licensed clinical programs
(SPL partnerships only) >125 >95 >75
Total number of active licensed clinical
programs under SPL partnerships currently
in the clinic ** 16 15 7
Total potential pre-commercial milestones >$1.55 >$1.25
under SPL partnerships billion billion >$950 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 2022 Financial Results
Total revenue for the fourth quarter of 2022 was $12.4 million,
compared to $10.2 million in the fourth quarter of 2021,
representing growth of 22%.
Core business revenue (instruments and disposables to cell
therapy and drug discovery customers and excluding program-related
revenue) was $10.6 million in 2022, compared to core business
revenue of $10.1 million in 2021, representing growth of 4%,
including 4% revenue growth from cell therapy customers and 5%
revenue growth from drug discovery customers.
Our SPL program-related revenue was $1.9 million in the fourth
quarter of 2022 as compared to immaterial SPL program-related
revenue in the fourth quarter of 2021.
Gross profit for the fourth quarter of 2022 was $10.9 million
(88% gross margin), compared to $8.9 million (88% gross margin) in
the fourth quarter of 2021.
Operating expenses for the fourth quarter of 2022 were $17.6
million, compared to operating expenses of $13.9 million in the
fourth quarter of 2021. The overall increase in operating expenses
was primarily driven by increases in R&D, sales, and marketing
headcount and occupancy expenses related to our new corporate
headquarters.
Net loss for the fourth quarter of 2022 was $4.8 million
compared to net loss of $4.9 million in the fourth quarter of 2021.
EBITDA, a non-GAAP measure, was a loss of $5.8 million for the
fourth quarter of 2022, compared to a loss of $4.5 million for the
fourth quarter of 2021; stock-based compensation expense was $3.1
million in the fourth quarter of 2022 compared to $2.4 million in
the fourth quarter of 2021.
Full Year 2022 Financial Results
Total revenue for 2022 was $44.3 million, compared to $33.9
million in 2021, representing growth of 31%.
Core business revenue for 2022 was $39.6 million, compared to
$31.4 million for 2021, representing growth of 26%, including 33%
revenue growth from cell therapy customers and 8% revenue growth
from drug discovery customers.
Our SPL program-related revenue for 2022 was $4.6 million,
compared to $2.5 million in SPL program-related revenue in 2021,
representing growth of 83% in 2022.
Gross profit for 2022 was $39.2 million (88% gross margin),
compared to $30.2 million (89% gross margin) in the prior year.
Operating expenses for 2022 were $66.5 million, compared to
operating expenses of $48.4 million in 2021. The overall increase
in operating expenses was principally driven by increases in
headcount, occupancy, and public company expenses.
Full year 2022 net loss was $23.6 million compared to a loss of
$19.1 million in 2021. Full year 2022 EBITDA was a loss of $24.8
million compared to a loss of $17.4 million in 2021; total
stock-based compensation for 2022 was $11.8 million, compared to
$8.0 million for 2021.
Total cash, cash equivalents and short-term investments were
$227.3 million as of December 31, 2022, compared to $255.0 million
as of December 31, 2021.
2023 Revenue Guidance
Management is providing initial 2023 revenue guidance for total
revenue, core business revenue and SPL program-related revenue.
Management expects full year 2023 total revenue growth of
between 21% and 26% over 2022 including core business revenue
growth of between 20% and 25% over 2022, and SPL program-related
revenue of approximately $6 million.
Webcast and Conference Call Details
MaxCyte will host a conference call today, March 15, 2023, 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, cell-engineering focused company providing
enabling platform technologies to advance the discovery,
development and commercialization of next-generation cell
therapeutics and to support innovative, cell-based research. Over
the past 20 years, we have developed and commercialized our
proprietary Flow Electroporation(R) technology, 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.
Non-GAAP Financial Measures
This press release contains EBITDA, which is a non-GAAP measure
defined as earnings before interest income and expense, taxes,
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 expected total revenue growth, core
business revenue growth and SPL program-related revenue for the
year ending December 31, 2023, expansion of and revenue from our
SPLs 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 timing of our customers'
ongoing and planned clinical trials; the adequacy of our cash
resources and availability of financing on commercially reasonable
terms; general market and economic conditions that may impact
investor confidence in the biopharmaceutical industry and affect
the amount of capital such investors provide to our current and
potential partners; and 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, 2022, to be filed with the
Securities and Exchange Commission on or about March 15, 2023, 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 Relations
Seismic Collaborative, A Spectrum Science Company
Valerie Enes
+1 408-497-8568
valerie@teamseismic.com
Nominated Adviser and Joint Corporate Broker
Panmure Gordon
Emma Earl / Freddy Crossley
Corporate Broking
Rupert Dearden
+44 (0)20 7886 2500
UK IR Adviser
Consilium Strategic Communications
Mary-Jane Elliott / Chris Welsh
+44 (0)203 709 5700
maxcyte@consilium-comms.com
MaxCyte, Inc.
Consolidated Balance Sheets
December 31,
--------------------------------
2022 2021
--------------- ---------------
Assets
Current assets:
Cash and cash equivalents $ 11,064,700 $ 47,782,400
Short-term investments, at amortized cost 216,274,900 207,261,400
Accounts receivable 11,654,600 6,877,000
Accounts receivable - TIA 1,912,400 -
Inventory 8,580,800 5,204,600
Prepaid expenses and other current assets 2,778,800 3,307,400
-------------- --------------
Total current assets 252,266,200 270,432,800
Property and equipment, net 23,724,700 7,681,200
Right-of-use asset - operating leases 9,853,500 5,689,300
Other assets 809,000 316,700
-------------- --------------
Total assets $ 286,653,400 $ 284,120,000
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 531,800 $ 1,820,300
Accrued expenses and other 8,025,300 6,523,500
Operating lease liability, current 156,800 527,200
Deferred revenue, current portion 6,712,600 6,746,800
-------------- --------------
Total current liabilities 15,426,500 15,617,800
Operating lease liability, net of current portion 15,938,100 5,154,900
Other liabilities 1,321,600 450,200
-------------- --------------
Total liabilities 32,686,200 21,222,900
-------------- --------------
Stockholders' equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares
issued and outstanding
at December 31, 2022 and 2021 - -
Common stock, $0.01 par value; 400,000,000 shares authorized, 102,397,913
and 101,202,705
shares issued and outstanding at December 31, 2022 and December 31, 2021,
respectively 1,024,000 1,012,000
Additional paid-in capital 390,818,500 376,189,600
Accumulated deficit (137,875,300) (114,304,500)
-------------- --------------
Total stockholders' equity 253,967,200 262,897,100
-------------- --------------
Total liabilities and stockholders' equity $ 286,653,400 $ 284,120,000
============== ==============
* Tenant improvement allowance ("TIA")
MaxCyte, Inc.
Consolidated Statements of Operations
Three Months Ended December 31, Year Ended December 31,
----------------------------------- ------------------------------
2022 2021 2022 2021
------------------ --------------- -------------- --------------
Revenue $ 12,423,600 $ 10,152,000 $ 44,261,500 $ 33,894,100
Cost of goods sold 1,546,500 1,225,900 5,098,400 3,647,400
-------------- -------------- ------------- -------------
Gross profit 10,877,100 8,926,100 39,163,100 30,246,700
-------------- -------------- ------------- -------------
Operating expenses:
Research and development 5,728,000 3,381,000 19,514,400 15,407,300
Sales and marketing 5,376,900 4,089,400 18,652,900 13,002,900
General and administrative 5,649,100 5,969,000 25,828,700 18,676,000
Depreciation and amortization 873,300 441,900 2,527,600 1,349,100
-------------- -------------- ------------- -------------
Total operating expenses 17,627,300 13,881,300 66,523,600 48,435,300
-------------- -------------- ------------- -------------
Operating loss (6,750,200) (4,955,200) (27,360,500) (18,188,600)
-------------- -------------- ------------- -------------
Other income (expense):
Interest and other expense (10,900) - (126,900) (1,044,400)
Interest income 1,951,700 80,800 3,916,600 150,800
-------------- -------------- ------------- -------------
Total other income (expense) 1,940,800 80,800 3,789,700 (893,600)
-------------- -------------- ------------- -------------
Net loss $ (4,809,400) $ (4,874,400) $ (23,570,800) $ (19,082,200)
============== ============== ============= =============
Basic and diluted net loss per
share $ (0.05) $ (0.05) $ (0.23) $ (0.21)
============== ============== ============= =============
Weighted average shares
outstanding, basic and diluted 102,120,812 100,829,377 101,702,664 90,619,057
============== ============== ============= =============
MaxCyte, Inc.
Consolidated Statements of Cash Flows
Year Ended December 31,
--------------------------------
2022 2021
--------------- ---------------
Cash flows from operating activities:
Net loss $ (23,570,800) $ (19,082,200)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 2,697,900 1,423,900
Net book value of consigned equipment sold 76,400 51,600
Loss on disposal of fixed assets 139,500 32,500
Fair value adjustment of liability classified warrant - 645,400
Stock-based compensation 11,752,400 7,958,800
Amortization of discounts on short-term investments (2,667,400) (70,300)
Non-cash interest expense - 5,400
Changes in operating assets and liabilities:
Accounts receivable (4,777,600) (1,705,100)
Accounts receivable - TIA (1,912,400) -
Inventory (3,493,300) (1,405,800)
Prepaid expense and other current assets 528,600 (2,304,400)
Right of use asset - operating leases (4,164,200) (3,806,200)
Right of use asset - finance lease - 63,500
Other assets (492,300) (282,800)
Accounts payable, accrued expenses and other (149,700) 2,090,900
Operating lease liability 10,412,800 3,874,900
Deferred revenue (34,200) 1,903,800
Other liabilities 871,400 (73,500)
-------------- --------------
Net cash used in operating activities (14,782,900) (10,679,600)
-------------- --------------
Cash flows from investing activities:
Purchases of short-term investments (290,942,100) (268,683,600)
Maturities of short-term investments 284,596,000 77,500,000
Purchases of property and equipment (18,477,200) (3,834,200)
Proceeds from sale of equipment - 4,600
-------------- --------------
Net cash used in investing activities (24,823,300) (195,013,200)
-------------- --------------
Cash flows from financing activities:
Net proceeds from issuance of common stock - 51,808,900
Net proceeds from issuance of common stock upon initial public offering - 184,268,400
Principal payments on notes payable - (4,922,400)
Proceeds from exercise of stock options 2,888,500 3,631,200
Principal payments on finance leases - (66,100)
-------------- --------------
Net cash provided by financing activities 2,888,500 234,720,000
-------------- --------------
Net (decrease) increase in cash and cash equivalents (36,717,700) 29,027,200
Cash and cash equivalents, beginning of year 47,782,400 18,755,200
-------------- --------------
Cash and cash equivalents, end of year $ 11,064,700 $ 47,782,400
============== ==============
Unaudited Reconciliation of Net Loss to EBITDA
Three Months Ended Year Ended
December 31 , December 31 ,
-------------------- ----------------------
2022 2021 2022 2021
--------- --------- ---------- ----------
(in thousands)
Net loss $ (4,809) $ (4,874) $ (23,571) $ (19,082)
Depreciation and amortization expense 920 417 2,698 1,424
Interest (income) expense, net (1,952) (81) (3,917) 239
Income taxes - - - -
-------- -------- --------- ---------
EBITDA $ (5,842) $ (4,538) $ (24,789) $ (17,419)
======== ======== ========= =========
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