TIDMMXCT TIDMTTM
RNS Number : 0134Z
MaxCyte, Inc.
11 May 2023
MaxCyte Reports First Quarter 2023 Financial Results and Updates
Full Year 2023 Guidance
ROCKVILLE, MD, May 11, 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 financial results for the first quarter ended March 31,
2023, and updated 2023 revenue guidance.
First Quarter Highlights
-- Total revenue of $8.6 million in the first quarter of 2023, a
decrease of 26% compared to the first quarter of 2022.
-- Core business revenue of $7.8 million in the first quarter of
2023, a decrease of 19% compared to the first quarter of 2022.
-- We now expect total revenue for 2023 to grow between 8% and
12% compared to 2022, with core revenue growth of 5% to 10% and
Strategic Platform License ("SPL") program-related revenue
expectations remaining the same at approximately $6 million for the
year.
-- Two SPL partnerships signed year-to-date. Walking Fish
Therapeutics partnership signed in May and Catamaran Bio
partnership signed in January. The total number of SPL partners now
stands at 20.
-- Douglas J. Swirsky appointed MaxCyte's Chief Financial
Officer, bringing over two decades of experience in the healthcare
sector, including as a public company executive at Nasdaq-listed
organizations.
-- Total cash, cash equivalents and short-term investments were
$224.7 million as of March 31, 2023.
"Given the evolving operating environment, we are pleased with
our first quarter results and the progress we have made towards
delivering on our long-term financial and strategic initiatives,"
said Doug Doerfler, President and CEO of MaxCyte. "2023 continues
to develop into a challenging year for the industry, as companies
prioritize their internal development assets within an evolving
funding environment, and we are updating our guidance accordingly.
We continue to make important progress in 2023, highlighted by
expanding our partnership portfolio with two new partners announced
including Walking Fish Therapeutics in May and Catamaran Bio in
January. Our partnership pipeline continues to develop, with a
number of potential partners operating across a variety of cell
types, indications, and gene-editing modalities.
"We also look forward to a potentially first commercially
approved product enabled by our platform, Vertex and CRISPR's
exa-cel program, which recently announced completion of their
rolling Biologics License Applications (BLAs) to the U.S. Food and
Drug Administration (FDA) for sickle cell disease and
transfusion-dependent beta thalassemia with request for Priority
Review. MaxCyte's technology continues to play a key role enabling
the development of lifesaving therapeutics across various disease
types. We are excited to see our partners' progress in 2023 and
beyond as the cell therapy industry moves forward."
The following table provides details regarding the sources of
our revenue for the periods presented.
Three Months Ended
March 31,
(Unaudited)
---------------------- ------
2023 2022 %
----------- --------- -----
(in thousands, except percentages)
Cell therapy $ 5,975 $ 7,416 (19%)
Drug discovery 1,797 2,167 (17%)
Program-related 804 2,004 (60%)
------- --------
Total revenue $ 8,576 $ 11,587 (26%)
======= ========
First Quarter 2023 Financial Results
Total revenue for the first quarter of 2023 was $8.6 million,
compared to $11.6 million in the first quarter of 2022,
representing a decline of 26%.
Core business revenue (sales and leases of instruments and
disposables to cell therapy and drug discovery customers but
excluding program-related revenue) for the first quarter of 2023
was $7.8 million, compared to $9.6 million in the first quarter of
2022, representing a decline of 19%.
Cell therapy revenue for the first quarter of 2023 was $6.0
million, compared to $7.4 million in the first quarter of 2022,
representing a decline of 19%. Drug discovery revenue for the first
quarter was $1.8 million, compared to $2.2 million in the first
quarter 2022, representing a decline of 17%.
SPL program-related revenue was $0.8 million in the first
quarter of 2023 as compared to $2.0 million SPL program-related
revenue in the first quarter of 2022.
Gross profit for the first quarter of 2023 was $7.6 million (88%
gross margin), compared to $10.5 million (91% gross margin) in the
first quarter of 2022.
Operating expenses for the first quarter of 2023 were $20.8
million, compared to operating expenses of $14.7 million in the
first quarter of 2022.
First quarter 2023 net loss was $10.9 million compared to net
loss of $4.1 million for the same period in 2022. EBITDA, a
non-GAAP measure, was a loss of $12.2 million for the first quarter
of 2023, compared to a loss of $3.7 million for the first quarter
of 2022. Stock-based compensation expense was $3.3 million in the
first quarter of 2023 compared to $2.5 million in the first quarter
of 2022.
2023 Revenue Guidance
We now expect total revenue for 2023 to grow between 8% and 12%
compared to 2022, with core revenue growth of 5% to 10% and
Strategic Platform License ("SPL") program-related revenue
expectations remaining the same at approximately $6 million for the
year.
Webcast and Conference Call Details
MaxCyte will host a conference call today, May 10, 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
At MaxCyte, we pursue cell engineering excellence to maximize
the potential of cells to improve patients' lives. We have spent
more than 20 years honing our expertise by building best-in-class
platforms, perfecting the art of the transfection workflow, and
venturing beyond today's processes to innovate tomorrow's
solutions. Our ExPERT(TM) platform, which is based on our Flow
Electroporation (R) 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. By providing
our partners with the right technology, as well as technical and
regulatory support, we aim to guide them on their journey to
transform human health. Learn more at maxcyte.com and follow us on
Twitter and LinkedIn .
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, filed with the Securities and
Exchange Commission on March 15, 2023, as well as in discussions of
potential risks, uncertainties, and other important factors in our
most recent Quarterly report on Form 10-Q and the other filings
that we make with the Securities and Exchange Commission from time
to time. These documents are available through the Investor Menu,
Financials section, under "SEC Filings" on the Investors page 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.
Unaudited Condensed Consolidated Balance Sheets
March 31, December 31,
--------------- ---------------
2023 2022
--------------- ---------------
Assets
Current assets:
Cash and cash equivalents $ 37,833,400 $ 11,064,700
Short-term investments, at amortized cost 186,819,300 216,274,900
Accounts receivable 8,294,800 11,654,600
Accounts receivable - TIA (Note 7) 996,600 1,912,400
Inventory 10,264,900 8,580,800
Prepaid expenses and other current assets 2,230,600 2,778,800
-------------- --------------
Total current assets 246,439,600 252,266,200
Property and equipment, net 24,947,900 23,724,700
Right of use asset - operating leases 9,757,600 9,853,500
Other assets 399,300 809,000
-------------- --------------
Total assets $ 281,544,400 $ 286,653,400
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,502,100 $ 531,800
Accrued expenses and other 6,912,900 8,025,300
Operating lease liability, current 475,200 156,800
Deferred revenue, current portion 5,749,200 6,712,600
-------------- --------------
Total current liabilities 16,639,400 15,426,500
Operating lease liability, net of current portion 15,777,200 15,938,100
Other liabilities 1,309,000 1,321,600
-------------- --------------
Total liabilities 33,725,600 32,686,200
-------------- --------------
Stockholders' equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares
issued and outstanding
at March 31, 2023 and December 31, 2022 - -
Common stock, $0.01 par value; 400,000,000 shares authorized, 102,904,745
and 102,397,913
shares issued and outstanding at March 31, 2023 and December 31, 2022,
respectively 1,029,100 1,024,000
Additional paid-in capital 395,546,600 390,818,500
Accumulated deficit (148,756,900) (137,875,300)
-------------- --------------
Total stockholders' equity 247,818,800 253,967,200
-------------- --------------
Total liabilities and stockholders' equity $ 281,544,400 $ 286,653,400
============== ==============
MaxCyte, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months Ended March 31,
--------------------------------
2023 2022
----------------- -------------
Revenue $ 8,576,300 $ 11,587,300
Cost of goods sold 999,800 1,062,600
------------- ------------
Gross profit 7,576,500 10,524,700
------------- ------------
Operating expenses:
Research and development 6,046,500 3,765,300
Sales and marketing 6,296,100 3,838,700
General and administrative 7,498,900 6,632,500
Depreciation and amortization 912,200 447,300
------------- ------------
Total operating expenses 20,753,700 14,683,800
------------- ------------
Operating loss (13,177,200) (4,159,100)
------------- ------------
Other income (expense):
Interest income 2,295,600 91,800
------------- ------------
Total other income (expense) 2,295,600 91,800
------------- ------------
Net loss $ (10,881,600) $ (4,067,300)
============= ============
Basic and diluted net loss per share $ (0.11) $ (0.04)
============= ============
Weighted average shares outstanding, basic and diluted 102,846,036 101,305,943
------------- ------------
MaxCyte, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31,
----------------------------------
2023 2022
----------------- -------------
Cash flows from operating activities:
Net loss $ (10,881,600) $ (4,067,300)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 961,700 487,400
Net book value of consigned equipment sold 16,800 32,800
Stock-based compensation 3,276,600 2,462,400
Amortization of discounts on short-term investments (1,730,100) (33,200)
Changes in operating assets and liabilities:
Accounts receivable 3,359,800 (1,750,800)
Accounts receivable - TIA 915,800 (2,119,200)
Inventory (1,706,000) (1,377,000)
Prepaid expense and other current assets 548,200 1,117,200
Right of use asset - operating leases 95,900 (5,212,600)
Other assets 409,700 (738,200)
Accounts payable, accrued expenses and other 1,227,000 (150,500)
Operating lease liability 157,500 7,569,000
Deferred revenue (963,400) 84,900
Other liabilities (12,600) 900
------------- ------------
Net cash used in operating activities (4,324,700) (3,694,200)
------------- ------------
Cash flows from investing activities:
Purchases of short-term investments (57,814,300) -
Maturities of short-term investments 89,000,000 200,796,000
Purchases of property and equipment (1,558,000) (5,999,500)
Proceeds from sale of equipment 9,100 -
------------- ------------
Net cash provided by investing activities 29,636,800 194,796,500
------------- ------------
Cash flows from financing activities:
Proceeds from exercise of stock options 1,456,600 892,600
------------- ------------
Net cash provided by financing activities 1,456,600 892,600
------------- ------------
Net increase in cash and cash equivalents 26,768,700 191,994,900
Cash and cash equivalents, beginning of period 11,064,700 47,782,400
------------- ------------
Cash and cash equivalents, end of period $ 37,833,400 $ 239,777,300
============= ============
Unaudited Reconciliation of Net Loss (GAAP) to EBITDA
(Non-GAAP)
Three Months Ended
March 31,
-------------------------
2023 2022
------------------- ----
(in thousands)
Net loss (GAAP) $ (10,882) $ (4,067)
Depreciation and amortization
expense 962 487
Interest income (2,296) (92)
Income taxes - -
--------------- ---- --------
EBITDA (Non-GAAP) $ (12,216) $ (3,672)
=============== ==== ========
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