Telesis Bio Reports Fourth Quarter and Full Year 2023 Financial Results
28 Marzo 2024 - 9:05PM
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 fourth quarter
and year ended December 31, 2023. Results highlight strong BioXp®
kit sales, expanding gross margin and reduced operating expense.
In discussing the results, Todd R. Nelson Ph.D.,
Founder and CEO of Telesis Bio said, “I’m pleased with our
operating execution in a challenging macro environment during 2023.
Our company experienced record BioXp kits sales and expanding gross
margin against the backdrop of significant cost cutting initiatives
undertaken to align our operating structure with our strategic
vision for growth. We believe that our rapid and flexible mRNA
synthesis kits are game-changing and unlock tremendous value by
providing customers control over their screening and discovery on
timelines that were not possible previously.”
Highlights
- BioXp® kit revenue for the fourth quarter of 2023 exceeded $1.0
million, the highest level in the history of the Company, an
increase of 59.6% from the prior quarter and 25.9% compared to the
same quarter in 2022. This increase was driven by rapid adoption of
highly differentiated mRNA workflows, which grew at more than 300%
compared to the same quarter in 2022. For the full 2023 fiscal
year, BioXp kit sales increased 10% compared to the prior
year.
- Total consolidated revenue for 2023 was $27.5 million, up
slightly from $27.4 million achieved in 2022. Total revenue,
excluding BioXp instrument sales and discontinued BioFoundry
Services operations, was $20.9 million for the full-year period, an
increase of 12.4% compared to $18.6 million for the same categories
in the prior year.
- Collaboration revenue for the year, driven in part by the
successful achievement of several key technology milestones, was
$8.7 million, an increase of 30.7% above the prior year’s
collaboration revenue of $6.7 million.
- Industry-wide acceptance of mRNA technology has driven the
Company’s launch of BioXp mRNA de novo synthesis kits and rapid
cell-free RNA synthesis solutions. These products enable customers
to accelerate cell and gene therapy, vaccine and antibody
discovery, and state of the art development workflows. The Company
anticipates that use of RNA in drug discovery workflows will
continue to grow, and it intends to prioritize continuing
development of the capabilities of its highly differentiated BioXp
and SOLA platforms to these workflows.
- In 2023, the Company undertook cost reduction activities to
achieve significant reductions to its overall cost structure. For
full-year 2023, exclusive of non-cash goodwill impairment,
operating expense was $52.1 million, a reduction of 16.1% from the
prior year’s operating expense level of $62.1 million. For the
fourth quarter of 2023, exclusive of non-cash goodwill impairment,
operating expense was $10.8 million, a reduction of 24.4% from the
prior year’s fourth quarter level of $14.3 million. Some of these
cost reductions were completed late in the year and are not fully
reflected in results for the fourth quarter of 2023. Such
reductions are expected to result in favorable reductions to
operating expense in 2024.
- During 2023 the Company’s program to insource supply of oligos
was completed and internal production now has the capacity to
supply at least 70% of the Company’s ongoing oligo needs. Further,
the Company has completed efforts to insource instrument
manufacturing. Both efforts are expected to favorably impact gross
margin and product quality in 2024.
- In other recent highlights, the Company continues to pursue
activities under its strategic research collaboration and license
agreement with Pfizer. This program is based upon Telesis’
proprietary SOLA platform which utilizes enzymatic DNA synthesis
technology for potential application by Pfizer in mRNA-based
vaccines and other biopharma products.
Summary of Fourth Quarter and Full Year
2023 Financial Results
Revenue of $7.0 million for the fourth quarter of
2023 was down compared to $9.5 million for the same period in the
prior year due to continued capital spending weakness gripping the
entire industry and the resulting mix-shift toward lower-priced
BioXp 3250 instruments. Revenue for the year ended December 31,
2023 was $27.5 million, compared to $27.4 million for the prior
year. The increase of $0.1 million was driven by an increase in
collaboration and royalty revenue of $2.1 million, offset by a
decrease in product and service revenue of $2.0 million.
Gross margin at 68.1% for the fourth quarter of
2023 was flat from 68.1% for the same period in the prior year. On
an annual basis, gross margin was 61.6% and 56.8% for the years
ended December 31, 2023 and 2022, respectively. This increase was
driven by improving product mix, an increase in high margin
collaboration revenue, and early contribution from oligo insourcing
which achieved production status in the fourth quarter and
demonstrated the capacity to internally fulfill more than 70% of
the Company’s oligo supply needs.
Exclusive of a $11.4 million fourth quarter 2023
non-cash charge for goodwill impairment, total operating expense
for the quarter was $10.8 million, a $3.5 million or 24.4%
reduction from the fourth quarter of 2022. A restructuring program
in the fourth quarter of 2023 largely resulted in the
year-over-year reduction in operating expense. This restructuring
saw consolidated Telesis headcount fall from an October month-end
level of 190 employees to 138 employees by the end of the year. For
the full year 2023, exclusive of non-cash goodwill impairment,
operating expense was $52.1 million compared to $62.1 million in
the prior year. All categories contributed to the year-over-year
reduction of $10.0 million or 16.1%.
During the fourth quarter of 2023 the Company
recorded a goodwill impairment charge of $11.4 million. As of
December 31, 2023, this charge reduced the carrying amount of
goodwill to $3.5 million. For the year ended December 31, 2022, the
Company did not record any impairment of goodwill.
Net loss was $18.3 million for the fourth quarter
of 2023, compared to a loss of $8.1 million in the same period in
the prior year. Net loss per share was $0.61 for the fourth quarter
of 2023, compared to $0.28 for the corresponding prior year period.
For the year ended December 31, net loss was $49.0 million in 2023
compared to $48.5 million for the same period in the prior year.
Per share net loss results were $1.64 and $1.65 in 2023 and 2022,
respectfully.
As of December 31, 2023, cash, cash equivalents,
restricted cash, and investments were $19.3 million, and long-term
notes payable was $5.3 million. In November 2023, the Company
repaid $15.0 million under its 2022 Term Loan Agreement.
The Company will not be issuing additional
forward-looking 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 the date of this release, March 28, 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
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Telesis
Bio Inc.Selected Statements of Operations
Financial Data(in thousands, except per share
amounts) |
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(unaudited) |
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Three Months Ended December
31, |
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Twelve Months Ended December
31, |
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2023 |
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2022 |
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2023 |
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|
2022 |
|
Revenue: |
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|
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|
|
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Product sales |
$ |
1,585 |
|
|
$ |
3,482 |
|
|
$ |
9,691 |
|
|
$ |
10,913 |
|
Service revenue |
|
1,438 |
|
|
|
1,609 |
|
|
|
6,291 |
|
|
|
7,121 |
|
Collaboration revenue |
|
3,304 |
|
|
|
3,463 |
|
|
|
8,690 |
|
|
|
6,650 |
|
Royalties and other revenue |
|
650 |
|
|
|
915 |
|
|
|
2,837 |
|
|
|
2,751 |
|
Total revenue |
|
6,977 |
|
|
|
9,469 |
|
|
|
27,509 |
|
|
|
27,435 |
|
Cost of revenue |
|
2,228 |
|
|
|
3,023 |
|
|
|
10,559 |
|
|
|
11,840 |
|
Gross Profit |
|
4,749 |
|
|
|
6,446 |
|
|
|
16,950 |
|
|
|
15,595 |
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Operating expenses: |
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|
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|
|
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Research and development |
|
3,669 |
|
|
|
4,139 |
|
|
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17,496 |
|
|
|
23,460 |
|
Sales and marketing |
|
3,604 |
|
|
|
4,681 |
|
|
|
13,514 |
|
|
|
16,489 |
|
General and administrative |
|
3,568 |
|
|
|
5,510 |
|
|
|
21,090 |
|
|
|
22,131 |
|
Goodwill impairment |
|
11,389 |
|
|
|
— |
|
|
|
11,389 |
|
|
|
— |
|
Total operating expenses |
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22,230 |
|
|
|
14,330 |
|
|
|
63,489 |
|
|
|
62,080 |
|
Loss from operations |
|
(17,481 |
) |
|
|
(7,884 |
) |
|
|
(46,539 |
) |
|
|
(46,485 |
) |
Interest income |
|
417 |
|
|
|
348 |
|
|
|
1,743 |
|
|
|
738 |
|
Interest expense |
|
(514 |
) |
|
|
(611 |
) |
|
|
(3,105 |
) |
|
|
(1,955 |
) |
Change in fair value of
derivative liabilities |
|
5 |
|
|
|
29 |
|
|
|
331 |
|
|
|
8 |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(727 |
) |
Other expense, net |
|
(111 |
) |
|
|
(8 |
) |
|
|
(130 |
) |
|
|
(26 |
) |
Provision for income
taxes |
|
(3 |
) |
|
|
(6 |
) |
|
|
(24 |
) |
|
|
(24 |
) |
Net loss |
$ |
(17,687 |
) |
|
$ |
(8,132 |
) |
|
$ |
(47,724 |
) |
|
$ |
(48,471 |
) |
Less: redeemable convertible
preferred stock dividends |
|
(579 |
) |
|
|
— |
|
|
|
(1,300 |
) |
|
|
— |
|
Net loss attributable to
common stockholders |
$ |
(18,266 |
) |
|
$ |
(8,132 |
) |
|
$ |
(49,024 |
) |
|
$ |
(48,471 |
) |
Net loss per share
attributable to common stockholders—basic and diluted |
$ |
(0.61 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.64 |
) |
|
$ |
(1.65 |
) |
Weighted average common stock
outstanding—basic and diluted |
|
30,010,395 |
|
|
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29,564,157 |
|
|
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29,849,832 |
|
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29,463,361 |
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Telesis
Bio Inc.Selected Balance Sheet Financial
Data(in thousands) |
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|
December 31, |
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|
December 31, |
|
|
2023 |
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|
2022 |
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Balance Sheet
Data: |
|
|
|
|
|
Cash, restricted cash, cash equivalents and short-term
investments |
$ |
19,333 |
|
|
$ |
43,753 |
|
Working capital |
|
22,167 |
|
|
|
41,594 |
|
Total assets |
|
70,411 |
|
|
|
81,362 |
|
Total liabilities |
|
40,873 |
|
|
|
34,797 |
|
Redeemable convertible preferred stock |
|
29,300 |
|
|
|
— |
|
Accumulated deficit |
|
(161,465 |
) |
|
|
(113,741 |
) |
Total stockholders’ equity |
|
238 |
|
|
|
46,565 |
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Grafico Azioni Telesis Bio (NASDAQ:TBIO)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Telesis Bio (NASDAQ:TBIO)
Storico
Da Set 2023 a Set 2024