HTG Molecular Diagnostics Reports Full Year 2019 Results
Increased product and product-related services revenue over prior year, benefitting from expanded menu of profiling assays and increased number of customers adopting technology
Released new HTG EdgeSeq Reveal data analysis software (version 2.0.0)
Call scheduled for today,
Recent Accomplishments & Highlights:
- Achieved product and product-related services revenue (“direct revenue”) of
$14.6 million for the year endedDecember 31, 2019 . Growth in direct revenue reflects an increased menu of profiling assays and an increased number of customers that have adopted the HTG EdgeSeq technology inthe United States andEurope .
- Released new data analysis software, HTG EdgeSeq Reveal version 2.0.0, enhancing functionality and accelerating data analysis from both the HTG EdgeSeq miRNA Whole Transcriptome Assay and the newly released HTG EdgeSeq Autoimmune Panel.
- Highlighted the company’s molecular diagnostics business at an event in
December 2019 with key opinion leaderLaura E. Benjamin , Ph.D., Founder and CEO ofOncologie, LTD. The HTG management team andDr. Benjamin discussed the future of precision medicine and the potential for HTG’s innovative approach to transform cancer care for patients globally.
- Strengthened the company’s patent portfolio with the receipt of a European patent (number EP 3356554) for methods for subtyping diffuse large B-cell lymphoma (DLBCL), effective October 2019. HTG received a
U.S. patent for this technology in 2018.
- Added to the growing number of peer-reviewed publications referencing HTG’s technology with papers appearing in both Cell and Nature. The total number of publications referencing HTG’s technology, including these peer-reviewed publications, is now over 140 as of
December 31, 2019 .
“Growth in our direct revenue in 2019 reflects the consistent efforts of our team, which have resulted in increased adoption of our technology in our core BioPharma and Academic markets,” said
Full Year 2019 Financial Results:
Total revenue for the year ended
Direct revenue for the year ended
Collaborative development services revenue for the year ended
Net loss from operations for the year ended
Cash, cash equivalents and short-term available-for-sale securities totaled
Conference Call and Webcast:
HTG will host an investment community conference call today beginning at
| Date: | ||
| Time: | ||
| Toll Free: | (877) 407-0789 | |
| International: | (201) 689-8562 | |
| Conference ID: | 13700130 | |
| Webcast: | http://public.viavid.com/index.php?id=138460 |
About HTG:
HTG is focused on NGS-based molecular profiling. The company’s proprietary HTG EdgeSeq technology automates complex, highly multiplexed molecular profiling from solid and liquid samples, even when limited in amount. HTG’s customers use its technology to identify biomarkers important for precision medicine, to understand the clinical relevance of these discoveries, and ultimately to identify treatment options. Its mission is to empower precision medicine.
Safe Harbor Statement:
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our collaborative development business opportunities and the potential of our molecular diagnostic development efforts to transform cancer care. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based upon management’s current expectations, are subject to known and unknown risks, and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation, the risk that products that we expect to develop in 2020 are not developed or released; the risk that we may not establish new and significant collaboration development arrangements; risks associated with our ability to successfully commercialize our products; the risk that our products and services may not be adopted by biopharmaceutical companies or other customers as anticipated, or at all; our ability to manufacture our products to meet demand; the level and availability of third party payor reimbursement for our products; our ability to protect our intellectual property rights and proprietary technologies; our ability to operate our business without infringing the intellectual property rights and proprietary technology of third parties; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; the impact of the COVID-19 pandemic, and product liability claims. These and other factors are described in greater detail in our filings with the
Contact:
Phone: (617) 430-7577
Email: arr@lifesciadvisors.com
-Financial tables follow-
| Consolidated Statements of Operations | ||||||||
| Years Ended |
||||||||
| 2019 | 2018 | |||||||
| Revenue: | ||||||||
| Product and product-related services | $ | 14,632,204 | $ | 9,121,390 | ||||
| Collaborative development services | 4,571,684 | 12,382,504 | ||||||
| Total revenue | 19,203,888 | 21,503,894 | ||||||
| Operating expenses: | ||||||||
| Cost of product and product-related services revenue | 8,911,372 | 5,090,475 | ||||||
| Selling, general and administrative | 18,682,396 | 19,974,616 | ||||||
| Research and development | 10,570,225 | 12,598,034 | ||||||
| Total operating expenses | 38,163,993 | 37,663,125 | ||||||
| Operating loss | (18,960,105 | ) | (16,159,231 | ) | ||||
| Loss on extinguishment of Growth Term Loan | — | (105,064 | ) | |||||
| Interest income (expense), net | (334,180 | ) | (186,097 | ) | ||||
| Net loss before income taxes | (19,294,285 | ) | (16,450,392 | ) | ||||
| Provision for income taxes | (3,379 | ) | (3,526 | ) | ||||
| Net loss | $ | (19,297,664 | ) | $ | (16,453,918 | ) | ||
| Net loss per share, basic and diluted | $ | (0.51 | ) | $ | (0.60 | ) | ||
| Shares used in computing net loss per share, basic and diluted | 38,099,687 | 27,523,463 | ||||||
| Consolidated Balance Sheets | ||||||||
| 2019 | 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,619,748 | $ | 8,432,600 | ||||
| Short-term investments available-for-sale, at fair value | 25,410,222 | 22,681,049 | ||||||
| Accounts receivable | 3,164,176 | 5,012,678 | ||||||
| Inventory, net | 1,269,667 | 1,306,609 | ||||||
| Restricted cash, current | 3,270,247 | — | ||||||
| Prepaid expenses and other | 633,522 | 519,002 | ||||||
| Total current assets | 41,367,582 | 37,951,938 | ||||||
| Restricted cash, non-current | — | 3,270,247 | ||||||
| Operating lease right-of-use assets | 1,209,145 | — | ||||||
| Property and equipment, net | 2,240,133 | 2,373,790 | ||||||
| Other non-current assets | 302,409 | 175,305 | ||||||
| Total assets | $ | 45,119,269 | $ | 43,771,280 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,662,583 | $ | 1,849,921 | ||||
| Accrued liabilities | 1,870,296 | 3,358,465 | ||||||
| Contract liabilities - current | 426,014 | 332,711 | ||||||
| NuvoGen obligation - current | 1,152,233 | 1,290,234 | ||||||
| Convertible note - current, net of debt issuance costs | 2,987,667 | — | ||||||
| Operating lease liabilities - current | 758,932 | — | ||||||
| Other current liabilities | 41,134 | 186,043 | ||||||
| Total current liabilities | 8,898,859 | 7,017,374 | ||||||
| NuvoGen obligation - non-current, net of discount | 4,498,777 | 5,702,519 | ||||||
| Convertible note - non-current, net of debt issuance costs | — | 2,974,213 | ||||||
| MidCap Term Loan payable - net of discount and debt issuance costs | 6,871,545 | 6,704,641 | ||||||
| Operating lease liabilities - non-current | 636,340 | — | ||||||
| Other non-current liabilities | 244,114 | 280,471 | ||||||
| Total liabilities | 21,149,635 | 22,679,218 | ||||||
| Commitments and Contingencies | ||||||||
| Total stockholders’ equity | 23,969,634 | 21,092,062 | ||||||
| Total liabilities and stockholders' equity | $ | 45,119,269 | $ | 43,771,280 | ||||
Source: HTG Molecular Diagnostics, Inc.