Rapid Micro Biosystems, Inc. (Nasdaq: RPID) (the “Company”), an
innovative life sciences technology company providing mission
critical automation solutions to facilitate the efficient
manufacturing and fast, safe release of healthcare products, today
announced that its Board of Directors has concluded its previously
announced review of strategic alternatives.
Since August 2022, the Board, in consultation with its legal and
financial advisors, has conducted a thorough review of strategic
alternatives focused on, among other things, a potential sale,
merger or other strategic transaction. Ultimately, no parties
submitted binding offers to acquire all outstanding shares of the
Company. As a result, the Board determined that the best path to
deliver shareholder value is for the Company to continue executing
its strategy to enhance its commercial execution and product
development programs and expand the market for its Growth Direct
system.
"Following a thorough review of strategic alternatives, the
Board determined that the continued execution of management’s
strategy is the best path forward for the Company and its
shareholders,” said Jeffrey Schwartz, Chairperson of the Board of
Directors. “The Board is confident that management’s execution on
the Company’s current strategic initiatives will drive improved
performance.”
“Over the last several months, we have taken decisive actions to
enhance our commercial execution and right-size our cost structure
while also managing our significant cash balance to secure a long
cash runway,” said Robert Spignesi, President and CEO. “As a result
of these actions, we are able to focus on increasing the efficiency
and effectiveness of our sales team to capitalize on our strong
sales pipeline and enhance our customer experience. We also
continue to invest in an expanding suite of solutions for the
Growth Direct platform with products and services such as our
recently announced RMBNucleus Mold Alarm. We are confident that we
are taking the right steps to drive future growth to increase
shareholder value.”
As of the end of the third quarter of 2022, the Company had
cash, cash equivalents and investments totaling $150.1 million with
no outstanding debt, which the Company expects to provide cash
runway at least into 2026.
About Rapid Micro Biosystems
Rapid Micro Biosystems is an innovative life sciences technology
company providing mission critical automation solutions to
facilitate the efficient manufacturing and fast, safe release of
healthcare products such as biologics, vaccines, cell and gene
therapies, and sterile injectables. The Company’s flagship Growth
Direct system automates and modernizes the antiquated, manual
microbial quality control (“MQC”) testing workflows used in the
largest and most complex pharmaceutical manufacturing operations
across the globe. The Growth Direct system brings the quality
control lab to the manufacturing floor, unlocking the power of
in-line/at-the-line MQC automation to deliver faster results,
greater accuracy, increased operational efficiency, better
compliance with data integrity regulations, and quicker decision
making, that customers rely on to ensure safe and consistent supply
of important healthcare products. The Company is headquartered and
has U.S. manufacturing in Lowell, Massachusetts, with global
locations in Lexington, Massachusetts, Switzerland, Germany, and
the Netherlands. For more information, please visit
www.rapidmicrobio.com or follow the Company on Twitter at
@rapidmicrobio or on LinkedIn.
Forward Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including, but not limited to,
statements regarding expectations for the Company’s improvements in
commercial execution and its product development programs; the
Company’s efforts to improve performance and drive shareholder
value; the Board of Directors’ potential consideration of
additional strategic opportunities; the Company’s efforts to
enhance customer interest in and adoption of its Growth Direct
platform and improve customers’ experience; and expectations
regarding the Company’s uses of capital, expenses and financial
results, including the expected cash runway.
In some cases, you can identify forward-looking statements by
terminology such as “outlook,” “aim,” “anticipate,” “assume,”
“believe,” “contemplate,” “continue,” “could,” “due,” “estimate,”
“expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,”
“potential,” “positioned,” “seek,” “should,” “target,” “will,”
“would” and other similar expressions that are predictions of or
indicate future events and future trends, or the negative of these
terms or other comparable terminology, although not all
forward-looking statements contain these words. Forward-looking
statements involve known and unknown risks, uncertainties and
assumptions which may cause actual results to differ materially
from any results expressed or implied by any forward-looking
statement, including, but not limited to, the impact of
macroeconomic volatility and COVID-19 and its variants on the
Company’s business and operations, including further delays in
placements and validation of new systems; the Company’s
organizational restructuring plan, including a reduction in
workforce, may not result in the anticipated savings, could result
in total costs and expenses that are greater than expected and
could disrupt the Company’s business; the Company’s significant
losses since inception; the Company’s ability to meet its publicly
announced guidance and other expectations about its business and
operating results; the Company’s limited experience in marketing
and sales and the effectiveness of its sales processes; the
Company’s need to develop new products and adapt to technological
changes; the Company’s ability to establish and maintain its
position as a leading provider of automated microbial quality
control testing; the Company’s ability to maintain its
manufacturing facility; risks related to third-parties; its ability
to retain key management and other employees; risks related to
regulatory and intellectual property matters; risks related to
supply chain disruptions and the impact of inflation; risks
relation to the exploration of strategic alternatives; and the
other important factors outlined under the caption “Risk Factors”
in the Company’s Annual Report on Form 10-K filed with the
Securities and Exchange Commission (“SEC”) on March 24, 2022, as
such factors may be updated from time to time in its other filings
with the SEC, which are available on the SEC's website at
www.sec.gov and the Investor Relations page of its website at
investors.rapidmicrobio.com. Although the Company believes that the
expectations reflected in its forward-looking statements are
reasonable, it cannot guarantee future results. The Company has no
obligation, and does not undertake any obligation, to update or
revise any forward-looking statement made in this press release to
reflect changes since the date of this press release, except as may
be required by law.
Contacts:
Investors
Michael Beaulieu, CFA Vice President, Investor Relations and Corporate Communications investors@rapidmicrobio.com
Media
Jamie Moser / Lucas Pers Joele Frank, Wilkinson Brimmer Katcher 212-355-4449
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