OpGen Reports Second Quarter 2020 Financial Results and Provides Business Update
- Total Revenue for Q2 2020 was approximately
$1.2 million dollars - Balance sheet strengthened significantly with
$6.1 million cash raised in Q2 2020 - Strategic co-promotion partnership with
Menarini Silicon Biosystems to market and sell Menarini’s COVID-19 related products
Conference call to be held at
Second Quarter and First Half 2020 Financial Results
- Total revenue for the second quarter of 2020 was approximately
$1.2 million up from$1.0 million in the second quarter of 2019. Total revenue for the first half of 2020 was$1.8 million , compared with$2.0 million for the first half of 2019; - Operating expenses for the second quarter of 2020 were
$7.7 million , compared with$3.6 million in the second quarter of 2019. Operating expenses for the first half of 2020 were$12.3 million , compared with$8.4 million for the first half of 2019; - The net loss for the second quarter of 2020 was
$7.5 million or$0.49 per share, compared with$2.6 million or$2.94 per share in the second quarter of 2019. The net loss for the first half of 2020 was$11.4 million or$1.00 per share, compared with a net loss of$6.4 million or$9.54 per share for the first half of 2019; and - Cash and cash equivalents were
$12.9 million as ofJune 30, 2020 .
The company also announced accomplishment of the following key milestones during the second quarter of 2020 and year to date:
- OpGen’s subsidiary
Ares Genetics GmbH continued executing in its strategic partnering programs with globally leading IVD and pharma companies as well as its collaborations with top-tier medical and public health institutions. Ares Genetics completed all three phases of the R&D program and successfully improved performance of molecular antibiotic susceptibility prediction based on ARESdb in its R&D collaboration with its undisclosed IVD partner as well as signed a second technology evaluation agreement with another undisclosed global IVD corporation. Ares Genetics significantly advanced its own R&D programs for AI-powered antibiotic susceptibility testing based on next-generation sequencing and published strong results from its collaborations with Sandoz,Johns Hopkins andMayo Clinic as well as initiated further commercial projects with new customers includingSiemens Technology Accelerator GmbH and AGES (Austrian Agency for Health and Food Safety ). - Curetis has successfully completed the verification and clinical validation testing of its proprietary, rapid SARS CoV-2 PCR test kit which it expects to CE-IVD mark in due course. The test allows to detect SARS CoV-2 directly from patient swabs in less than 1 hour and does not require prior RNA isolation.
OpGen announced a strategic co-promotion partnership withMenarini Silicon Biosystems to market and sell Menarini’s portfolio of COVID-19 related products to infectious disease healthcare providers and researchers inNorth America .- OpGen’s subsidiary
Curetis GmbH secured access to an additionalEUR 5 million tranche in non-dilutive debt financing for COVID-19 related R&D from theEuropean Investment Bank (EIB). Curetis can draw down the tranche at its sole discretion during a nine-month period and the tranche will have a five-year maturity and is interest-only until then. - Preliminary data was released from an investigator-initiated collaboration with Karolinska Institutet,
Stockholm, Sweden , to identify bacterial co-infections in hospitalized patients with COVID-19 pneumonia. OpGen’sUnyvero HPN Panel for Pneumonia identifies life-threatening bacterial co-infections in COVID-19 patients in just five hours, and Unyvero LRT and LRT BAL panels are FDA-cleared in theU.S. for rapid detection of lower respiratory tract infections such as pneumonia. Furthermore, performance of the Unyvero system was highlighted in several posters and abstracts in ASM Microbe 2020 online. OpGen expects that its submission to theU.S. Food and Drug Administration (“FDA”) for clearance of the Acuitas®AMR Gene Panel (Isolates) for the detection of antimicrobial resistance genes in bacterial isolates is nearing completion.OpGen has responded, and is continuing to respond, to the FDA’s additional information requests and anticipates approaching a clearance decision for the marketing submissions and applications on hold as ofJune 2020 , which resulted in OpGen’s original submission deadline ofJuly 15, 2020 being extended toOctober 13, 2020 .The German Federal Ministry for Economic Affairs and Energy (BMWi) has initiated an investigation of theOpGen business combination with Curetis under Sections 55 et seq. of the Foreign Trade and Payments Ordinance (AWV) with regards to its impact on the public order and security of theFederal Republic of Germany as well as national healthcare interests in the light of the current COVID-19 pandemic.OpGen has already responded to all questions currently raised by the BMWi and will remain in constructive dialogue with the BMWi with a view to completing the process as swiftly as possible.
Conference Call Information
OpGen’s management will host a conference call today,
Dial-in Information | |
International Dial-in Number: +1 (201) 493 6725 | |
Webcast: http://public.viavid.com/index.php?id=141125 | |
Conference ID: 13707986 |
Following the conclusion of the conference call, a replay will be available through
Replay Information | |
International Dial-in Number: +1 (412) 317 6671 | |
Replay PIN: 13707986 |
About
For more information, please visit www.opgen.com.
Forward-Looking Statements
This press release includes statements regarding OpGen’s second quarter 2020 results, the integration of
President and CEO
InvestorRelations@opgen.com
OpGen Press Contact:
Matthew Bretzius
FischTank Marketing and PR
matt@fischtankpr.com
OpGen Investor Contact:
Edison Group
mpaul@edisongroup.com
Consolidated Balance Sheets | ||||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 12,886,547 | $ | 2,708,223 | ||||
Accounts receivable, net | 231,427 | 567,811 | ||||||
Inventory, net | 2,898,185 | 473,030 | ||||||
Note receivable | — | 2,521,479 | ||||||
Prepaid expenses and other current assets | 810,391 | 396,760 | ||||||
Total current assets | 16,826,550 | 6,667,303 | ||||||
Property and equipment, net | 3,587,341 | 130,759 | ||||||
Finance lease right-of-use assets, net | 696,333 | 958,590 | ||||||
Operating lease right-of-use assets | 1,653,603 | 1,043,537 | ||||||
7,650,642 | 600,814 | |||||||
Intangible assets, net | 15,566,528 | 817,550 | ||||||
Other noncurrent assets | 309,347 | 203,271 | ||||||
Total assets | $ | 46,290,344 | $ | 10,421,824 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,745,499 | $ | 1,056,035 | ||||
Accrued compensation and benefits | 1,730,129 | 855,994 | ||||||
Accrued liabilities | 2,514,992 | 1,046,661 | ||||||
Deferred revenue | 393,739 | 9,808 | ||||||
Short-term notes payable | 1,378,380 | 373,599 | ||||||
Short-term finance lease liabilities | 432,494 | 579,030 | ||||||
Short-term operating lease liabilities | 1,271,700 | 1,017,414 | ||||||
Total current liabilities | 9,466,933 | 4,938,541 | ||||||
Note payable | 16,794,652 | 329,456 | ||||||
Derivative liabilities | 234,224 | — | ||||||
Long-term finance lease liabilities | 135,521 | 313,263 | ||||||
Long-term operating lease liabilities | 782,494 | 547,225 | ||||||
Other long term liabilities | 147,977 | - | ||||||
Total liabilities | 27,561,801 | 6,128,485 | ||||||
Commitments | ||||||||
Stockholders' equity | ||||||||
Preferred stock, |
— | — | ||||||
Common stock, |
176,939 | 55,823 | ||||||
Additional paid-in capital | 204,154,419 | 178,779,814 | ||||||
Accumulated deficit | (185,949,916 | ) | (174,524,983 | ) | ||||
Accumulated other comprehensive income/(loss) | 347,101 | (17,315 | ) | |||||
Total stockholders’ equity | 18,728,543 | 4,293,339 | ||||||
Total liabilities and stockholders’ equity | $ | 46,290,344 | $ | 10,421,824 | ||||
Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue | ||||||||||||||||
Product sales | $ | 601,304 | $ | 504,293 | $ | 968,237 | $ | 1,024,470 | ||||||||
Laboratory services | 25,992 | 5,250 | 25,992 | $ | 5,250 | |||||||||||
Collaboration revenue | 561,089 | 500,000 | 811,089 | 1,000,000 | ||||||||||||
Total revenue | 1,188,385 | 1,009,543 | 1,805,318 | 2,029,720 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of products sold | 713,916 | 198,493 | 990,470 | 419,195 | ||||||||||||
Cost of services | 252,655 | 251,981 | 390,321 | 396,463 | ||||||||||||
Research and development | 2,979,025 | 1,153,584 | 4,196,581 | 2,929,966 | ||||||||||||
General and administrative | 2,491,571 | 1,592,845 | 4,193,019 | 3,340,430 | ||||||||||||
Sales and marketing | 1,044,032 | 393,567 | 1,326,309 | 765,800 | ||||||||||||
Transaction costs | 225,000 | — | 470,322 | — | ||||||||||||
Impairment of intangible assets | — | — | 750,596 | — | ||||||||||||
Impairment of right-of-use asset | — | — | — | 520,759 | ||||||||||||
Total operating expenses | 7,706,199 | 3,590,470 | 12,317,618 | 8,372,613 | ||||||||||||
Operating loss | (6,517,814 | ) | (2,580,927 | ) | (10,512,300 | ) | (6,342,893 | ) | ||||||||
Other (expense) income | ||||||||||||||||
Interest and other income/(expense) | (5,656 | ) | 15,166 | 81,679 | (9,256 | ) | ||||||||||
Interest expense | (1,044,891 | ) | (37,129 | ) | (1,083,158 | ) | (93,573 | ) | ||||||||
Foreign currency transaction losses | (289,788 | ) | 9,879 | (293,664 | ) | (472 | ) | |||||||||
Change in fair value of derivative financial instruments | 382,511 | — | 382,511 | 67 | ||||||||||||
Total other expense | (957,824 | ) | (12,084 | ) | (912,632 | ) | (103,234 | ) | ||||||||
Loss before income taxes | (7,475,638 | ) | (2,593,011 | ) | (11,424,932 | ) | (6,446,127 | ) | ||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss | $ | (7,475,638 | ) | $ | (2,593,011 | ) | $ | (11,424,932 | ) | $ | (6,446,127 | ) | ||||
Net loss per common share - basic and diluted | $ | (0.49 | ) | $ | (2.94 | ) | $ | (1.00 | ) | $ | (9.54 | ) | ||||
Weighted average shares outstanding - basic and diluted | 15,403,986 | 882,286 | 11,427,322 | 675,932 | ||||||||||||
Net loss | $ | (7,475,638 | ) | $ | (2,593,011 | ) | $ | (11,424,932 | ) | $ | (6,446,127 | ) | ||||
Other comprehensive income/(loss) - foreign currency translation | 324,939 | (4,950 | ) | 364,416 | (2,124 | ) | ||||||||||
Comprehensive loss | $ | (7,150,699 | ) | $ | (2,597,961 | ) | $ | (11,060,516 | ) | $ | (6,448,251 | ) | ||||
Source: OpGen, Inc.