Exagen Inc. Reports Second Quarter 2020 Results
July 28 2020 - 7:00AM
Exagen Inc. (Nasdaq: XGN), an organization dedicated to
transforming the care continuum for patients suffering from
autoimmune diseases, today reported financial results for the
quarter ended June 30, 2020.
Second Quarter Highlights:
- Generated total revenue of $8.9 million for the quarter ended
June 30, 2020.
- Generated $2.1 million in SIMPONI® co-promotion revenues.
- Delivered 18,522 flagship AVISE® CTD tests, including AVISE®
Lupus, in the second quarter 2020 despite the COVID-19
pandemic.
- Number of ordering healthcare providers was 1,442 in the second
quarter, with 428 adopters.
- Sequential quarterly retention rate of approximately 96% among
adopting healthcare providers from the prior quarter.
- Cost saving initiatives implemented include the termination and
furlough of certain employees and all temps, and halting of all
nonessential spending.
“Even during the COVID-19 pandemic, autoimmune diseases don't
take a break. This illustrates the need for novel ways to diagnose,
prognose and monitor autoimmune diseases, and optimize therapeutic
intervention. Our AVISE® tests and SIMPONI® self-injectable
anti-TNF meet those needs," said Ron Rocca, President and Chief
Executive Officer of Exagen. "Care for autoimmune patients has been
difficult for years, and our AVISE® tests provide clarity for the
physician's clinical evaluation."
Second Quarter 2020 Financial Results
Revenue for the three months ended June 30, 2020 was $8.9
million, compared with $10.5 million in the second quarter of 2019.
Testing revenue was $6.8 million for the second quarter of 2020,
compared to $10.2 million in the second quarter of 2019, due to
lower testing volumes attributed to COVID-19 impacts and a decrease
in average reimbursement per test. Our co-promotion efforts
contributed $2.1 million in the second quarter of 2020, compared to
$0.3 million in the second quarter of 2019. Throughout the quarter,
monthly testing volumes improved sequentially due to the resumption
of patient visits following the easing of shelter-in-place
restrictions. We experienced sequential monthly AVISE® CTD test
volumes increases from April 2020 of approximately 45% in May 2020
and 52% in June 2020.
Gross margin was 63% in the second quarter of 2020 compared to
52% in the second quarter of 2019, benefiting from an increase in
SIMPONI® revenues.
Operating expenses decreased to $12.4 million in the second
quarter of 2020, compared with $12.9 million in the second quarter
of 2019 and $14.8 million in the first quarter of 2020, due to a
decrease in cost of revenue associated with lower testing volumes
and cost saving initiatives implemented to reduce overall operating
expenses.
For the second quarter of 2020, net loss was $3.4 million
compared to a net loss of $2.8 million for the second quarter of
2019.
Cash and cash equivalents were approximately $63.7 million as of
June 30, 2020.
Conference Call
A conference call to review second quarter 2020 financial
results and to provide a business update is scheduled for today
July 28, 2020 at 8:00 AM Eastern Time (5:00 AM Pacific Time).
Interested parties may access the conference call by dialing (877)
407-3982 (U.S.) or (201) 493-6780 (international). Additionally, a
link to a live webcast of the call will be available in the
investor relations section of Exagen's website at
http://investors.exagen.com.
Participants are asked to join a few minutes prior to the call
to register for the event. A replay of the conference call will be
available until Tuesday, August 4, 2020 at 11:59 PM Eastern Time
(8:59 PM Pacific Time). Interested parties may access the replay by
dialing (844) 512-2921 (U.S.) or (412) 317-6671 (international)
using passcode 13706731. A link to the replay of the webcast will
also be available in the investor relations section of Exagen's
website.
About Exagen
Exagen is dedicated to transforming the care continuum for
patients suffering from debilitating and chronic autoimmune
diseases by enabling timely differential diagnosis and optimizing
therapeutic intervention. Exagen has developed and is
commercializing a portfolio of innovative testing products under
its AVISE® brand, several of which are based on our proprietary
Cell-Bound Complement Activation Products, or CB-CAPs, technology.
CB-CAPs assess the activation of the complement system, a
biological pathway that is widely implicated across many autoimmune
and autoimmune-related diseases, including systemic lupus
erythematosus, or SLE. Exagen’s goal is to enable rheumatologists
to improve care for patients through the differential diagnosis,
prognosis and monitoring of complex autoimmune and
autoimmune-related diseases, including SLE and rheumatoid
arthritis, or RA. Exagen’s model of integrating testing products
and therapeutics positions Exagen to offer targeted solutions to
rheumatologists and, ultimately, better serve patients. For
more information, please visit www.Exagen.com.
Forward Looking Statements
Exagen cautions you that statements contained in this press
release regarding matters that are not historical facts are
forward-looking statements. These statements are based on the
company’s current beliefs and expectations. Such forward-looking
statements include, but are not limited to, statements regarding:
the expected impact of COVID-19 and the potential benefit of the
company's testing products and promoted therapeutic for patients
and physicians in autoimmune disease treatment. The inclusion
of forward-looking statements should not be regarded as a
representation by Exagen that any of its plans will be achieved.
Actual results may differ from those set forth in this press
release due to the risks and uncertainties inherent in Exagen’s
business, including, without limitation: the COVID-19 pandemic may
continue to adversely affect our business, financial condition and
results of operations, including as a result of shutdowns of our
facilities and operations as well as those of our suppliers and
courier services, impeding patient movement and interruptions to
healthcare services causing a decrease in test volumes, disruptions
to the supply chain of material needed for our tests, our sales and
commercialization activities and our ability to receive specimens
and perform or deliver the results from our tests, delays in
reimbursement and coverage decisions from Medicare and third-party
payors and in interactions with regulatory authorities, and delays
in ongoing and planned clinical trials involving our tests; the
company’s commercial success depends upon attaining and maintaining
significant market acceptance of its testing products and promoted
therapeutics among rheumatologists, patients, third-party payers
and others in the medical community; the company’s ability to
successfully execute on its Dx/Rx strategy, including its promotion
efforts for SIMPONI®; third party payers not providing coverage and
adequate reimbursement for the company’s testing products or
promoted therapeutics; the company’s ability to obtain and maintain
intellectual property protection for its testing products;
regulatory developments affecting the company’s business; and other
risks described in the company’s prior press releases and the
Company’s filings with the Securities and Exchange Commission
(SEC), including under the heading “Risk Factors” in the company’s
Annual Report on Form 10-K and any subsequent filings with the SEC.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
and Exagen undertakes no obligation to update such statements to
reflect events that occur or circumstances that exist after the
date hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, which is made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995.
CONTACTS:
InvestorsWestwicke PartnersMike
CavanaughMike.Cavanaugh@westwicke.com646.677.1838
CompanyExagen Inc.Kamal Adawi, Chief Financial
Officerkadawi@exagen.com760.477.5514
Exagen Inc.
Unaudited Condensed Statements of
Operations(in thousands, except share and per
share data)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(Unaudited) |
Revenue |
|
$ |
8,948 |
|
|
$ |
10,474 |
|
|
$ |
18,532 |
|
|
$ |
19,734 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Costs of revenue |
|
3,338 |
|
|
4,992 |
|
|
7,883 |
|
|
9,434 |
|
Selling, general and administrative expenses |
|
8,276 |
|
|
7,302 |
|
|
17,902 |
|
|
13,481 |
|
Research and development expenses |
|
751 |
|
|
590 |
|
|
1,385 |
|
|
1,103 |
|
Total operating expenses |
|
12,365 |
|
|
12,884 |
|
|
27,170 |
|
|
24,018 |
|
Loss from operations |
|
(3,417 |
) |
|
(2,410 |
) |
|
(8,638 |
) |
|
(4,284 |
) |
Interest expense |
|
(635 |
) |
|
(910 |
) |
|
(1,266 |
) |
|
(1,811 |
) |
Change in fair value of
financial instruments |
|
— |
|
|
467 |
|
|
— |
|
|
467 |
|
Other income, net |
|
689 |
|
|
68 |
|
|
860 |
|
|
139 |
|
Loss before income taxes |
|
(3,363 |
) |
|
(2,785 |
) |
|
(9,044 |
) |
|
(5,489 |
) |
Income tax benefit |
|
— |
|
|
— |
|
|
118 |
|
|
— |
|
Net loss |
|
(3,363 |
) |
|
(2,785 |
) |
|
(8,926 |
) |
|
(5,489 |
) |
Accretion of redeemable
convertible preferred stock |
|
— |
|
|
(2,188 |
) |
|
— |
|
|
(4,302 |
) |
Net loss attributable to
common stockholders |
|
$ |
(3,363 |
) |
|
$ |
(4,973 |
) |
|
$ |
(8,926 |
) |
|
$ |
(9,791 |
) |
Net loss per share, basic and
diluted |
|
$ |
(0.27 |
) |
|
$ |
(78.87 |
) |
|
$ |
(0.71 |
) |
|
$ |
(155.33 |
) |
Weighted-average number of
shares used to compute net loss per share, basic and diluted |
|
12,637,642 |
|
|
63,050 |
|
|
12,616,678 |
|
|
63,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exagen Inc.
Condensed Balance
Sheets(in thousands, except share and per share
data)
|
|
June 30,2020 |
|
December 31,2019 |
Assets |
|
(Unaudited) |
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
63,700 |
|
|
$ |
72,084 |
|
Accounts receivable, net |
|
7,263 |
|
|
5,715 |
|
Prepaid expenses and other current assets |
|
2,500 |
|
|
3,451 |
|
Total current assets |
|
73,463 |
|
|
81,250 |
|
Property and equipment,
net |
|
1,370 |
|
|
1,380 |
|
Goodwill |
|
5,506 |
|
|
5,506 |
|
Other assets |
|
174 |
|
|
174 |
|
Total assets |
|
$ |
80,513 |
|
|
$ |
88,310 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,438 |
|
|
$ |
1,476 |
|
Accrued and other current liabilities |
|
4,317 |
|
|
4,419 |
|
Total current liabilities |
|
5,755 |
|
|
5,895 |
|
Borrowings-non-current
portion, net of discounts and debt issuance costs |
|
26,249 |
|
|
25,854 |
|
Deferred tax liabilities |
|
147 |
|
|
264 |
|
Other non-current
liabilities |
|
521 |
|
|
638 |
|
Total liabilities |
|
32,672 |
|
|
32,651 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no
shares issued or outstanding at June 30, 2020 and December 31,
2019 |
|
— |
|
|
— |
|
Common stock, $0.001 par value; 200,000,000 shares authorized at
June 30, 2020 and December 31, 2019; 12,640,409 and 12,560,990
shares issued and outstanding at June 30, 2020 and December
31, 2019, respectively |
|
13 |
|
|
13 |
|
Additional paid-in capital |
|
221,356 |
|
|
220,248 |
|
Accumulated deficit |
|
(173,528 |
) |
|
(164,602 |
) |
Total stockholders' equity |
|
47,841 |
|
|
55,659 |
|
Total liabilities and
stockholders' equity |
|
$ |
80,513 |
|
|
$ |
88,310 |
|
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