TIDMMXCT TIDMTTM
RNS Number : 8618I
MaxCyte, Inc.
10 August 2023
MaxCyte Reports Second Quarter and Half-Year 2023 Financial
Results and Updates Full Year 2023 Guidance
ROCKVILLE, MD, August 10, 2023 -- 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, 2023.
Second Quarter and Recent Highlights
á Total revenue of $9.0 million in the second quarter of 2023, a
decrease of 6% compared to the second quarter of 2022.
á Core business revenue of $8.3 million in the second quarter of
2023, a decrease of 14% compared to the second quarter of 2022.
á We now expect core revenue for 2023 to be comparable to 2022
and Strategic Platform License ("SPL") program-related revenue
expectations remain unchanged at approximately $6 million for the
year.
á Five SPL partnerships signed year-to-date. Lyell Immunopharma
and ViTToria Biotherapeutics announced in July, and Prime Medicine
announced in August. The total number of SPL partnerships now
stands at 23.
á Total cash, cash equivalents and short-term investments were
$216.1 million as of June 30, 2023.
"2023 has been a challenging year across the life sciences
industry. An evolving funding environment continues to result in
the prioritization of internal pipeline assets by companies,
impacting the timing of research and early clinical development
projects. Despite this, we remain positive on our ability to
successfully deliver on our long-term financial and strategic goals
and are encouraged by our continued momentum in signing new
clinical partnerships. We believe these partnerships reflect the
value of MaxCyteÕs premier cell engineering technology and support,
underlining the key role we play in enabling a growing set of
next-generation cell therapies," said Doug Doerfler, President and
Chief Executive Officer at MaxCyte.
"So far this year MaxCyte has signed five strategic
partnerships, bringing the total number to 23. Our most recently
signed partnerships highlight our expansion into autologous
modalities across a range of indications including genetic
diseases, lymphoma, and solid tumors. Moving forward, we will
continue to make the necessary investments into key aspects of our
technology and support offering, including our applications lab,
and process development capabilities, which we believe enable us to
provide invaluable support to our partners as they advance through
the clinic and towards 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,
---------------------- ----- ------------------ -----
2023 2022 % 2023 2022 %
------------ -------- ---- -------- -------- ----
(in thousands, except percentages)
Cell therapy $ 6,637 $ 7,688 (14%) $ 12,611 $ 15,104 (17%)
Drug discovery 1,652 1,916 (14%) 3,450 4,083 (16%)
Program-related 754 4 NM 1,558 2,008 (22%)
-------- ------- ------- -------
Total revenue $ 9,043 $ 9,608 (6%) $ 17,619 $ 21,195 (17%)
======== ======= ======= =======
Second Quarter 2023 Financial Results
Total revenue for the second quarter of 2023 was $9.0 million,
compared to $9.6 million in the second quarter of 2022,
representing a decline of 6%.
Core business revenue (sales and leases of instrument and
disposables to cell therapy and drug discovery customers, excluding
program-related revenue) for the second quarter of 2023 was $8.3
million, compared to $9.6 million in the second quarter of 2022,
representing a decline of 14%.
Cell therapy revenue for the second quarter of 2023 was $6.6
million, compared to $7.7 million in the second quarter of 2022,
representing a decline of 14%. Drug discovery revenue for the
second quarter of 2023 was $1.7 million, compared to $1.9 million
in the second quarter of 2022, representing a decline of 14%.
SPL Program-related revenue was $0.8 million in the second
quarter of 2023, as compared to no material SPL Program-related
revenue in the second quarter of 2022.
Gross profit for the second quarter of 2023 was $7.7 million
(85% gross margin), compared to $8.5 million (88% gross margin) in
the same period of the prior year.
Operating expenses for the second quarter of 2023 were $20.7
million, compared to operating expenses of $17.2 million in the
second quarter of 2022.
Second quarter 2023 net loss was $10.5 million compared to net
loss of $8.3 million for the same period in 2022. EBITDA, a
non-GAAP measure, was a loss of $12.0 million for the second
quarter of 2023, compared to a loss of $8.2 million for the second
quarter of the prior year. Stock-based compensation expense was
$3.5 million for the second quarter versus $3.0 million for the
same period in the prior year.
First Half 2023 Financial Results
Total revenue for the first half of 2023 was $17.6 million,
compared to $21.2 million in the first half of 2022, representing a
decline of 17%.
Core business revenue (sales and leases of instrument and
disposables to cell therapy and drug discovery customers but
excluding program-related revenue) for the first half was $16.1
million, compared to $19.2 million in the first half of 2022,
representing a decline of 16%.
Cell therapy revenue for the first half of 2023 was $12.6
million, compared to $15.1 million in the first half of 2022,
representing a decline of 17%. Drug discovery revenue for the first
half was $3.5 million, compared to $4.1 million in the second
quarter of 2022, representing a decline of 16%.
SPL Program-related revenue was $1.6 million in the first half
of 2023, as compared to $2.0 million in program-related revenue in
the first half of 2022.
Gross profit for the first half of 2023 was $15.2 million (87%
gross margin), compared to $19.0 million (90% gross margin) in the
same period of the prior year.
Operating expenses for the first half of 2023 were $41.5
million, compared to operating expenses of $31.9 million in the
first half of 2022.
First half 2023 net loss was $21.4 million compared to net loss
of $12.3 million for the same period in 2022. EBITDA was a loss of
$24.3 million for the first half of 2023, compared to a loss of
$11.9 million for the same period of the prior year. Stock-based
compensation expense was $6.8 million for the first half of 2023
versus $5.4 million for the same period in the prior year.
2023 Revenue Guidance
We now expect core revenue for 2023 to be comparable to 2022 and
Strategic Platform License ("SPL") program-related revenue
expectations remain unchanged at approximately $6 million for the
year.
Webcast and Conference Call Details
MaxCyte will host a conference call today, August 9, 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 patientsÕ 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 todayÕs processes to innovate tomorrowÕs
solutions. 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. 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, tax, depreciation and
amortization. MaxCyte believes that EBITDA provides useful
information to management and investors relating to its results of
operations. The companyÕs management uses this non-GAAP measure to
compare the companyÕs 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 companyÕs 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 companyÕs 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
companyÕs 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 customersÕ 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 and outcome of our
customersÕ 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 market acceptance and demand for our
technology and 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 +1 415-937-5400
ir@maxcyte.com
Gilmartin Group
David Deuchler, CFA
US Media Relations
Seismic
Valerie Enes
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
June 30, 31,
--------------- ---------------
2023 2022
--------------- ---------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 54,556,900 $ 11,064,700
Short-term investments, at amortized cost 161,552,100 216,274,900
Accounts receivable 7,607,800 11,654,600
Accounts receivable Ð TIA* -- 1,912,400
Inventory 11,020,300 8,580,800
Prepaid expenses and other current assets 1,881,900 2,778,800
-------------- --------------
Total current assets 236,619,000 252,266,200
Property and equipment, net 24,324,600 23,724,700
Right of use asset - operating leases 9,663,200 9,853,500
Other assets 597,300 809,000
-------------- --------------
Total assets $ 271,204,100 $ 286,653,400
============== ==============
Liabilities and stockholdersÕ equity
Current liabilities:
Accounts payable $ 1,602,800 $ 531,800
Accrued expenses and other 6,410,800 8,025,300
Operating lease liability, current 498,600 156,800
Deferred revenue, current portion 4,692,600 6,712,600
-------------- --------------
Total current liabilities 13,204,800 15,426,500
Operating lease liability, net of current
portion 15,708,100 15,938,100
Other liabilities 1,308,400 1,321,600
-------------- --------------
Total liabilities 30,221,300 32,686,200
-------------- --------------
StockholdersÕ equity
Preferred stock, $0.01 par value; 5,000,000
shares authorized and no shares issued and
outstanding at June 30, 2023 and December
31, 2022 -- --
Common stock, $0.01 par value; 400,000,000
shares authorized, 103,134,585 and 102,397,913
shares issued and outstanding at June 30,
2023 and December 31, 2022, respectively 1,031,400 1,024,000
Additional paid-in capital 399,220,100 390,818,500
Accumulated deficit (159,268,700) (137,875,300)
-------------- --------------
Total stockholdersÕ equity 240,982,800 253,967,200
-------------- --------------
Total liabilities and stockholdersÕ
equity $ 271,204,100 $ 286,653,400
============== ==============
* Tenant improvement allowance ("TIA")
MaxCyte, Inc.
Unaudited Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------- ------------------------------
2023 2022 2023 2022
-------------- ------------- -------------- --------------
Revenue $ 9,042,600 $ 9,607,800 $ 17,618,900 $ 21,195,100
Cost of goods sold 1,375,700 1,120,400 2,375,500 2,183,000
------------- ------------ ------------- -------------
Gross profit 7,666,900 8,487,400 15,243,400 19,012,100
------------- ------------ ------------- -------------
Operating expenses:
Research and development 5,664,300 4,696,000 11,710,800 8,461,200
Sales and marketing 6,436,100 4,930,600 12,732,200 8,769,300
General and administrative 7,662,500 7,102,600 15,161,400 13,735,100
Depreciation and amortization 977,400 497,100 1,889,600 944,500
------------- ------------ ------------- -------------
Total operating expenses 20,740,300 17,226,300 41,494,000 31,910,100
------------- ------------ ------------- -------------
Operating loss (13,073,400) (8,738,900) (26,250,600) (12,898,000)
------------- ------------ ------------- -------------
Other income:
Interest income 2,561,600 478,700 4,857,200 570,500
------------- ------------ ------------- -------------
Total other income 2,561,600 478,700 4,857,200 570,500
------------- ------------ ------------- -------------
Net loss $ (10,511,800) $ (8,260,200) $ (21,393,400) $ (12,327,500)
============= ============ ============= =============
Basic and diluted net loss
per share $ (0.10) $ (0.08) $ (0.21) $ (0.12)
============= ============ ============= =============
Weighted average shares outstanding,
basic and diluted 103,063,606 101,427,430 102,955,422 101,547,583
============= ============ ------------- -------------
MaxCyte, Inc.
Unaudited Consolidated Statements of Cash Flows
Six Months Ended June
30,
---------------------------------------------------------
2023 2022
--------------------------------- --------------------
Cash flows from operating activities:
Net loss $ (21,393,400) $ (12,327,500)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 1,987,900 1,035,000
Net book value of consigned equipment
sold 65,800 51,400
Stock-based compensation 6,795,700 5,435,200
Bad debt expense 230,200 --
Amortization of discounts on short-term
investments (3,641,600) (206,100)
Changes in operating assets and
liabilities:
Accounts receivable 3,816,600 (555,900)
Accounts receivable - TIA 1,912,400 (475,600)
Inventory (2,541,700) (2,639,500)
Prepaid expense and other current assets 896,900 1,995,800
Right of use asset Ð operating
leases 190,300 (4,741,000)
Other assets 211,700 (603,800)
Accounts payable, accrued expenses and
other (1,039,000) 939,900
Operating lease liability 111,800 8,809,900
Deferred revenue (2,020,000) 563,800
Other liabilities (13,200) (57,200)
----------------- -------------- ---- --------------
Net cash used in operating activities (14,429,600) (2,775,600)
----------------- -------------- ---- --------------
Cash flows from investing activities:
Purchases of short-term investments (104,955,600) (131,547,700)
Maturities of short-term investments 163,320,000 207,296,000
Purchases of property and equipment (2,065,000) (12,804,800)
Proceeds from sale of equipment 9,100 --
----------------- -------------- ---- --------------
Net cash provided by investing
activities 56,308,500 62,943,500
----------------- -------------- ---- --------------
Cash flows from financing activities:
Proceeds from exercise of stock options 1,613,300 1,218,100
----------------- -------------- ---- --------------
Net cash provided by financing
activities 1,613,300 1,218,100
----------------- -------------- ---- --------------
Net increase in cash and cash equivalents 43,492,200 61,386,000
Cash and cash equivalents, beginning of
period 11,064,700 47,782,400
----------------- -------------- ---- --------------
Cash and cash equivalents, end of period $ 54,556,900 $ 109,168,400
================= ============== ==== ==============
Unaudited Reconciliation of Net Loss to EBITDA
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2023 2022 2023 2022
--------- --------- --------- ---------
(in thousands)
Net loss $(10,512) $ (8,260) $(21,393) $(12,328)
Depreciation and amortization expense 1,026 548 1,988 1,035
Interest income (2,562) (479) (4,857) (571)
Income taxes -- -- -- --
-------- -------- -------- --------
EBITDA $(12,047) $ (8,191) $(24,263) $(11,864)
======== ======== ======== ========
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