OpGen Announces 2017 First Quarter Financial Results
April 26 2017 - 4:00PM
OpGen, Inc. (NASDAQ:OPGN) today reported financial and operational
results for the first quarter ended March 31, 2017 and summarized
recent business highlights.
“In the first quarter, we presented preliminary results
supporting the Acuitas® Rapid Test in development for detection of
resistance genes in multi-drug resistant pathogens and demonstrated
the bioinformatics capabilities of the Acuitas Lighthouse®
Knowledgebase to predict antibiotic susceptibility and resistance.”
said Evan Jones, Chairman & CEO of OpGen. “As we look forward,
the milestones achieved in the first quarter will provide the
foundation for growth in the coming years as we progress
development of our Acuitas® technology.”
2017 First Quarter Financial Results
- Revenue: Total revenue for the three months
ended March 31, 2017 was $0.8 million compared with $1.1
million for the three months ended March 31, 2016.
- Operating Expenses: Operating expenses for the
three months ended March 31, 2017 were $5.7 million
compared with $5.6 million for the three months ended March 31,
2016.
- Net Loss: Net loss for the three months
ended March 31, 2017 was $5.0 million compared with $4.5
million for the three months ended March 31, 2016.
- Cash Position: Cash and cash equivalents
were $1.7 million as of March 31, 2017 compared with $4.1
million as of December 31, 2016.
Q1 2017 Enterprise Highlights and Recent
Developments:
- Moved our Acuitas Rapid Test into full development with a goal
of implementing the technology for external research use in the
second half of the year.
- Continued to build and expand our Acuitas Lighthouse
Knowledgebase by completing genotype/phenotype testing for 4,000
clinical isolates from the Merck SMART Surveillance Network and
other collaborator clinical sites.
- Presented rapid Acuitas genetic test data at Advances in Genome
Biology and Technology (AGBT) Meeting.
- Presentation of posters highlighting ability of our Acuitas
technology to rapidly predict antibiotic resistance and detect
outbreaks with drug resistance gene profiles at ECCMID 2017.
- Raised $2.1 million of net proceeds through the sale of common
stock under our at the market offering.
“As we transition our business to the new Acuitas family of
genomic and informatic products under development for management of
drug resistant infections, our Q1 2017 revenue was impacted by
decreased sales associated with the company’s legacy FISH pathogen
identification family of products and the discontinuation of our
whole genome mapping products,” stated Mr. Jones. “We are working
through this transition as we move forward with development and the
planned commercialization of our Acuitas Rapid Test.”
2017 Outlook
Throughout 2017, we are focusing on advancing development of our
Acuitas Rapid Test for complicated UTI infections (cUTI) and
infection control alongside the Acuitas Lighthouse Knowledgebase
with a goal of implementing the technology for external research
use in the second half of the year. We are also working to further
accelerate the growth of our business in the United States and
international markets. We anticipate sharing additional
commercial, technical and health outcomes data that support our
position and capabilities as they become available.
In the fight to help address the global antibiotic resistance
crisis, OpGen expects to advance the following business
objectives in 2017:
- Genomic and antibiotic resistance testing of 10,000 multidrug
resistant organisms to support initial development of the first
Acuitas Rapid Test kits and deployment of the Acuitas Lighthouse
Knowledgebase.
- Completion of initial Acuitas Rapid Test development and
Acuitas Lighthouse genotype/phenotype predictive algorithms and
clinical performance verification.
- Announcement of in vitro diagnostic instrument supply and
cooperation agreement to support global commercialization of the
Acuitas Rapid Test.
- Establishment of distribution and partnering relationships to
support commercialization of the Acuitas Rapid Test and
the Acuitas Lighthouse Knowledgebase in international
markets.
- Establishment of Acuitas Rapid Test early access and
performance verification programs to support regulatory approval
clinical trials and publications.
- Presentation of Acuitas Rapid Test and performance data at
medical meetings and in peer reviewed journals.
Conference Call Information
OpGen management will hold a conference call today
beginning at 4:30 p.m. (EDT) to discuss first quarter
2017 financial results and other business activities. The call
can be accessed by dialing 844-420-8185 (domestic) or 216-562-0481
(international) and providing passcode 11373581. A live
webcast of the conference call can be accessed by visiting the
Investor Relations section of the company’s website
at http://ir.opgen.com. A replay of the webcast will be
available shortly after the conclusion of the call on the company’s
website for 90 days.
A telephone replay also will be available at 7:30 p.m. ET
through May 1, 2017 and may be accessed by dialing
855-859-2056 from within the U.S. or 404-537-3406 from outside the
U.S. All listeners should provide passcode 11373581.
About OpGenOpGen, Inc. is harnessing
the power of informatics and genomic analysis to provide complete
solutions for patient, hospital and network-wide infection
prevention and treatment. Learn more at www.opgen.com and
follow OpGen on Twitter and LinkedIn.
OpGen®, Acuitas® , Acuitas Lighthouse® and QuickFISH®
are registered trademarks of OpGen, Inc.
Forward-Looking StatementsThis press release
includes statements relating to the company's products and
services, its development efforts, and its commercialization plans
for these products and services. These statements and other
statements regarding our future plans and goals constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, and are intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Such statements are subject to risks
and uncertainties that are often difficult to predict, are beyond
our control, and which may cause results to differ materially from
expectations. Factors that could cause our results to differ
materially from those described include, but are not limited to,
our ability to successfully, timely and cost-effectively develop,
seek and obtain regulatory approval for and commercialize our
product and services offerings, the rate of adoption of our
products and services by hospitals and other healthcare providers,
the success of our commercialization efforts, the effect on our
business of existing and new regulatory requirements, and other
economic and competitive factors. For a discussion of the most
significant risks and uncertainties associated
with OpGen's business, please review our filings with
the Securities and Exchange Commission (SEC). You are
cautioned not to place undue reliance on these forward-looking
statements, which are based on our expectations as of the date of
this press release and speak only as of the date of this press
release. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
|
OpGen, Inc. and Subsidiaries |
Condensed Consolidated Balance
Sheets |
(unaudited) |
|
|
March 31, 2017 |
|
|
December 31, 2016 |
Assets |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
1,670,311 |
|
|
$ |
4,117,324 |
|
Accounts receivable,
net |
|
|
379,246 |
|
|
|
542,420 |
|
Inventory, net |
|
|
642,961 |
|
|
|
692,368 |
|
Prepaid expenses and
other current assets |
|
|
267,971 |
|
|
|
329,646 |
|
Total current
assets |
|
|
2,960,489 |
|
|
|
5,681,758 |
|
Property and equipment,
net |
|
|
743,521 |
|
|
|
800,723 |
|
Goodwill |
|
|
600,814 |
|
|
|
600,814 |
|
Intangible assets,
net |
|
|
1,554,044 |
|
|
|
1,620,998 |
|
Other noncurrent
assets |
|
|
298,081 |
|
|
|
279,752 |
|
Total
assets |
|
$ |
6,156,949 |
|
|
$ |
8,984,045 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,017,202 |
|
|
$ |
2,232,563 |
|
Accrued compensation
and benefits |
|
|
1,019,962 |
|
|
|
578,480 |
|
Accrued
liabilities |
|
|
883,105 |
|
|
|
1,215,283 |
|
Deferred revenue |
|
|
31,233 |
|
|
|
37,397 |
|
Short-term notes
payable |
|
|
998,958 |
|
|
|
1,023,815 |
|
Current maturities of
long-term capital lease obligation |
|
|
170,297 |
|
|
|
184,399 |
|
Total current
liabilities |
|
|
5,120,757 |
|
|
|
5,271,937 |
|
Deferred rent |
|
|
374,194 |
|
|
|
398,084 |
|
Long-term capital lease
obligation and other noncurrent liabilities |
|
|
107,940 |
|
|
|
146,543 |
|
Total
liabilities |
|
|
5,602,891 |
|
|
|
5,816,564 |
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
|
Common stock, $0.01 par
value; 200,000,000 shares authorized; 27,377,490 and 25,304,270
shares issued and outstanding at March 31, 2017 and
December 31, 2016, respectively |
|
|
273,775 |
|
|
|
253,042 |
|
Preferred stock, $0.01
par value; 10,000,000 shares authorized; none issued and
outstanding at March 31, 2017 and December 31, 2016,
respectively |
|
|
— |
|
|
|
— |
|
Additional paid-in
capital |
|
|
138,546,915 |
|
|
|
136,199,382 |
|
Accumulated other
comprehensive income |
|
|
2,419 |
|
|
|
6,176 |
|
Accumulated
deficit |
|
|
(138,269,051 |
) |
|
|
(133,291,119 |
) |
Total
stockholders’ equity |
|
|
554,058 |
|
|
|
3,167,481 |
|
Total
liabilities and stockholders’ equity |
|
$ |
6,156,949 |
|
|
$ |
8,984,045 |
|
|
|
|
|
|
|
|
|
|
OpGen, Inc. and Subsidiaries |
|
Condensed Consolidated Statements of Operations
and Comprehensive Loss |
|
(unaudited) |
|
|
|
|
|
Three Months Ended
March 31, |
|
|
|
2017 |
|
|
2016 |
|
Revenue |
|
|
|
|
|
|
|
|
Product sales |
|
$ |
734,502 |
|
|
$ |
947,219 |
|
Laboratory
services |
|
|
16,105 |
|
|
|
129,420 |
|
Collaboration
revenue |
|
|
21,164 |
|
|
|
— |
|
Total
revenue |
|
|
771,771 |
|
|
|
1,076,639 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
Cost of products
sold |
|
|
424,950 |
|
|
|
345,967 |
|
Cost of services |
|
|
100,233 |
|
|
|
315,709 |
|
Research and
development |
|
|
2,122,515 |
|
|
|
1,953,429 |
|
General and
administrative |
|
|
1,969,216 |
|
|
|
1,538,046 |
|
Sales and
marketing |
|
|
1,105,586 |
|
|
|
1,399,435 |
|
Total operating
expenses |
|
|
5,722,500 |
|
|
|
5,552,586 |
|
Operating
loss |
|
|
(4,950,729 |
) |
|
|
(4,475,947 |
) |
Other
expense |
|
|
|
|
|
|
|
|
Interest and other
income |
|
|
21 |
|
|
|
173 |
|
Interest expense |
|
|
(29,844 |
) |
|
|
(41,734 |
) |
Foreign currency
transaction gains |
|
|
2,620 |
|
|
|
11,328 |
|
Total other
expense |
|
|
(27,203 |
) |
|
|
(30,233 |
) |
Loss before
income taxes |
|
|
(4,977,932 |
) |
|
|
(4,506,180 |
) |
|
|
|
|
|
|
|
|
|
Provision for
income taxes |
|
|
— |
|
|
|
— |
|
Net
loss |
|
|
(4,977,932 |
) |
|
|
(4,506,180 |
) |
|
|
|
|
|
|
|
|
|
Preferred stock
dividends and beneficial conversion |
|
|
— |
|
|
|
— |
|
Net loss
available to common stockholders |
|
$ |
(4,977,932 |
) |
|
$ |
(4,506,180 |
) |
Net loss per common
share - basic and diluted |
|
$ |
(0.19 |
) |
|
$ |
(0.36 |
) |
Weighted average shares
outstanding - basic and diluted |
|
|
26,079,461 |
|
|
|
12,568,941 |
|
Net loss |
|
$ |
(4,977,932 |
) |
|
$ |
(4,506,180 |
) |
Other comprehensive
loss - foreign currency translation |
|
|
(3,757 |
) |
|
|
(1,112 |
) |
Comprehensive
loss |
|
$ |
(4,981,689 |
) |
|
$ |
(4,507,292 |
) |
|
|
|
|
|
|
|
|
|
Company Contact:
Michael Farmer
Director, Marketing
240-813-1284
mfarmer@opgen.com
InvestorRelations@opgen.com
Investor and Media Contact:
MacDougall Biomedical Communications
Cammy Duong
781-591-3443
cduong@macbiocom.com
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