Telesis Bio Reports First Quarter 2024 Financial Results
May 09 2024 - 4:05PM
Telesis Bio Inc. (NASDAQ: TBIO), a leading provider of RNA and DNA
solutions enabling researchers to accelerate therapeutic discovery
through advanced, flexible, and rapid automated synthesis in their
own lab, today announced financial results for the first quarter of
2024.
In discussing results, recently appointed President and CEO Eric
Esser said, “I am pleased with our performance as we execute
against our strategy to focus on Gibson SOLA and BioXp mRNA
solutions. Our BioXp mRNA offerings continue to gain traction and
are delivering real improvements in speed and simplicity to our
customers in their discovery workflows. I’m also excited about the
progress we’ve made with Gibson SOLA to ready it for commercial
delivery, and believe it will transform high-throughput on-demand
synthesis of high-fidelity DNA and mRNA in ways that will give our
customers ultimate control and flexibility.”
Recent Highlights
- The Company recently announced a new strategic focus enabled by
the commercial availability of its groundbreaking Gibson SOLA
platform. Going forward, the Company will increasingly concentrate
its efforts on expanding the adoption of Gibson SOLA for both DNA
and mRNA drug discovery applications.
- BioXp automation platform sales driven by mRNA continue to
increase, and in the first quarter of 2024, 40% of the customers
who purchased instruments indicated that mRNA will be their primary
workflow. The Company believes it has a highly differentiated
offering with significant advantages over existing solutions and
believes we are gaining traction in this market segment.
- The strategic research collaboration and license agreement with
Pfizer continues to progress favorably. This program is based upon
Telesis’ proprietary Gibson SOLA platform which utilizes enzymatic
DNA synthesis technology for potential application by Pfizer in
mRNA-based vaccines and other biopharma products.
- First quarter 2024 operating expense, which is now better
aligned with our current commercial strategy, is reduced 31% from
the first quarter of the prior year.
Summary of First Quarter 2024 Financial
Results
Revenue for the three months ended March 31, 2024 was $3.4
million compared to $6.3 million for the three months ended
March 31, 2023. The decrease of $2.9 million was attributable
to a decrease in product revenue of $1.7 million, a decrease in
collaboration revenue of $1.0 million, and a decrease in service
revenue of $0.4 million partially offset by an increase in royalty
and other revenue of $0.2 million. Product revenue from BioXp
capital equipment instruments decreased by $1.6 million, and
revenue from BioXp kits decreased by $0.1 million. Service revenue
decreases were largely driven by turnover of the commercial team at
our Eton subsidiary. Collaboration revenue decreases were driven by
the completion of deferred revenue amortization during the fourth
quarter of 2023 for the $8.0 million up-front payment from our
Pfizer contract.
For the first quarter of 2024, gross margin percentage was 42%
compared to 56% of total revenues for the three months ended
March 31, 2023. The decrease was primarily due to a reduction
in revenue from higher margin collaboration research programs, and
a greater number of the higher margin BioXp 9600 systems sold
during the first quarter of 2023, compared to the first quarter of
2024.
Operating expense for the first quarter of 2024 was $10.0
million, a $4.5 million or 31% reduction from the first quarter of
2023 level of $14.5 million. A restructuring program in the fourth
quarter of 2023 largely resulted in the year-over-year reduction.
With respect to operating expense levels by income statement
category, each of research & development, sales &
marketing, and general & administrative expense contributed to
the favorable year-over-year quarterly comparison.
Net loss was $8.6 million for the first quarter of 2024,
compared to a loss of $11.1 million in the same period in the prior
year. Net loss per share was $5.52 for the first quarter of 2024,
compared to $6.75 for the corresponding prior year period, with
both periods adjusted for our 1-for-18 reverse stock split.
As of March 31, 2024, cash, cash equivalents, restricted cash,
and investments were $15.7 million compared to $19.3 million on
December 31, 2023. Long-term notes payable was $5.2 million on
March 31, 2024.
The Company will not be issuing forward-looking financial
guidance at this time.
About Telesis Bio Telesis Bio is empowering
scientists with the ability to create novel, synthetic
biology-enabled solutions for many of humanity’s greatest
challenges. As inventors of the industry-standard Gibson Assembly®
method and the first commercial automated benchtop DNA and mRNA
synthesis system, Telesis Bio is enabling rapid, accurate and
reproducible writing of DNA and mRNA for numerous downstream
markets. The award-winning BioXp® system consolidates, automates,
and optimizes the entire synthesis, cloning and amplification
workflow. As a result, it delivers virtually error-free synthesis
of DNA and RNA at scale within days and hours instead of weeks or
months. Scientists around the world are using the technology in
their own laboratories to accelerate the design-build-test paradigm
for novel, high-value products for precision medicine, biologics
drug discovery, vaccine and therapeutic development, genome
editing, and cell and gene therapy. Telesis Bio is a public company
based in San Diego. For more information, visit www.telesisbio.com.
Telesis Bio, the Telesis Bio logo, Gibson Assembly, and BioXp are
trademarks of Telesis Bio Inc.
Forward-Looking Statements This press release
contains forward-looking statements. All statements other than
statements of historical facts contained herein are forward-looking
statements reflecting the current beliefs and expectations of
management made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements
include statements and guidance regarding Telesis Bio’s future
financial performance as well as statements regarding the future
release and success of new and existing products and services. Such
statements are based on current assumptions that involve risks and
uncertainties that could cause actual outcomes and results to
differ materially from current expectations. These risks and
uncertainties, many of which are beyond our control, include risks
described in the section entitled Risk Factors and elsewhere in our
most recently filed Annual Report on Form 10-K which was filed with
the Securities and Exchange Commission on March 29, 2024. These
forward-looking statements speak only as of the date hereof and
should not be unduly relied upon. Telesis Bio disclaims any
obligation to update these forward-looking statements.
Contact:William J. KullbackChief Financial
Officerbill.kullback@telesisbio.com
Telesis Bio Inc.Selected Statements of
Operations Financial Data(in thousands, except per
share amounts)(unaudited)
|
Three Months Ended March 31, |
|
|
2024 |
|
|
2023 |
|
Revenue: |
|
|
|
|
|
Product sales |
$ |
1,264 |
|
|
$ |
3,001 |
|
Service revenue |
|
1,251 |
|
|
|
1,674 |
|
Collaboration revenue |
|
— |
|
|
|
962 |
|
Royalties and other revenue |
|
925 |
|
|
|
679 |
|
Total revenue |
|
3,440 |
|
|
|
6,316 |
|
Cost of revenue |
|
1,994 |
|
|
|
2,805 |
|
Gross Profit |
|
1,446 |
|
|
|
3,511 |
|
Operating expenses: |
|
|
|
|
|
Research and development |
|
2,925 |
|
|
|
5,121 |
|
Sales and marketing |
|
1,675 |
|
|
|
3,807 |
|
General and administrative |
|
5,367 |
|
|
|
5,554 |
|
Total operating expenses |
|
9,967 |
|
|
|
14,482 |
|
Loss from operations |
|
(8,521 |
) |
|
|
(10,971 |
) |
Interest income |
|
228 |
|
|
|
390 |
|
Interest expense |
|
(217 |
) |
|
|
(639 |
) |
Change in fair value of
derivative liabilities |
|
— |
|
|
|
140 |
|
Other expense, net |
|
(125 |
) |
|
|
(36 |
) |
Provision for income
taxes |
|
(2 |
) |
|
|
(3 |
) |
Net loss |
$ |
(8,637 |
) |
|
$ |
(11,119 |
) |
Less: redeemable convertible
preferred stock dividends |
|
(585 |
) |
|
|
— |
|
Net loss attributable to
common stockholders |
$ |
(9,222 |
) |
|
$ |
(11,119 |
) |
Net loss per share
attributable to common stockholders—basic and diluted |
$ |
(5.52 |
) |
|
$ |
(6.75 |
) |
Weighted average common stock
outstanding—basic and diluted |
|
1,670,981 |
|
|
|
1,647,945 |
|
Telesis Bio Inc.Selected Balance Sheet
Financial Data(in
thousands)(unaudited)
|
March 31, |
|
|
December 31, |
|
|
2024 |
|
|
2023 |
|
Balance Sheet
Data: |
|
|
|
|
|
Cash, restricted cash, cash equivalents and short-term
investments |
$ |
15,696 |
|
|
$ |
19,333 |
|
Working capital |
|
16,983 |
|
|
|
22,167 |
|
Total assets |
|
63,331 |
|
|
|
70,411 |
|
Total liabilities |
|
41,682 |
|
|
|
40,873 |
|
Redeemable convertible preferred stock |
|
29,885 |
|
|
|
29,300 |
|
Accumulated deficit |
|
(170,102 |
) |
|
|
(161,465 |
) |
Total stockholders’ (deficit) equity |
|
(8,236 |
) |
|
|
238 |
|
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