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OpGen Reports 2016 Third Quarter Financial Results and Provides Business Update
[October 24, 2016]

OpGen Reports 2016 Third Quarter Financial Results and Provides Business Update


GAITHERSBURG, Md., Oct. 24, 2016 (GLOBE NEWSWIRE) -- OpGen, Inc. (NASDAQ:OPGN) today reported financial and operational results for the three and nine months ended September 30, 2016. Highlights of the third quarter and recent weeks include:

  • Third-quarter revenues of $0.8 million, a 23% decrease over prior year
  • Nine-month revenues of $3.0 million, a 65% increase over prior year
  • Automated QuickFISH® Pathogen ID clinical trial anticipated to begin Q1 2017
  • Acuitas Lighthouse® rapid antibiotic resistance test and knowledgebase development underway
  • Initial Intermountain Healthcare Retrospective Study results presented

Total revenue for the third quarter of 2016 was $0.8 million, compared with $1.0 million for the third quarter of 2015, a 23% decrease. Product sales and laboratory services decreased to $0.8 million, compared with $1.0 million for the third quarter of 2015. The decrease was attributable to decreased rapid pathogen ID and legacy genome mapping product sales. Gross margin on product sales was 45% for the third quarter of 2016. Total operating expenses for the third quarter of 2016 were $5.6 million, compared with $5.6 million for the third quarter of 2015. The net loss attributable to common stockholders for the third quarter of 2016 was $4.8 million, or $0.23 per share, compared with a net loss attributable to common stockholders for the third quarter of 2015 of $4.7 million, or $0.38 per share. The company had cash and cash equivalents of $4.3 million as of September 30, 2016, compared with $7.8 million as of December 31, 2015.

Total revenue for the nine months ended September 30, 2016 was $3.0 million, compared with $1.8 million for the same period of 2015, a 65% increase. Revenue from product sales and laboratory services increased 90% to $2.9 million from $1.5 million in 2015 primarily as a result of sales of rapid pathogen ID testing products. Gross margin on product sales was 53% for the nine months ended September 30, 2016. Total operating expenses for the nine months ended September 30, 2016 were $17.3 million, compared with $12.1 million for the nine months ended September 30, 2015. Net loss attributable to common stockholders was $14.7 million for the nine months ended September 30, 2016, or $0.92 per share, compared with a net loss attributable to common stockholders of $12.9 million for the nine months ended September 30, 2015 or $2.00 per share.

“During the quarter we continued to make progress developing our genomics and informatics business. Nine-month revenue increased 65% to $3.0 million and we continued to progress a number of key strategic initiatives. In the area of rapid antibiotic decision-making, our automated rapid pathogen ID system is on track to begin 510(k) clinical trials in Q1 2017 and development of our mAST™ antibiotic resistance testing solution is underway. We have begun testing thousands of pathogens to support development of our Acuitas Lighthouse rapid antibiotic resistance test and knowledge base following the successful verification of our expanded Resistome test and the initial performance confirmation of our mAST genotype/phenotype predictive algorithms. These products and services are being developed to address the large and growing global antibiotic resistance testing opportunity,” said Evan Jones, chairman and chief executive officer of OpGen.

“We continue to work closely with large healthcare providers and hospital networks to demonstrate the benefits of our integrated informatics and genomic products and services. At IDWeek 2016 we anticipate the presentation of additional data from these collaborative efforts as we work to transform acute care infectious disease monitoring with our Acuitas Lighthouse offerings.”

Mr. Jones concluded, “During the third quarter our revenues, were negatively impacted by several items. These included the timing of sales, the phase-out of our legacy whole genome mapping products, and supply chain issues for our rapid pathogen ID products. We have addressed the supply chain issues and, looking forward, we anticipate a stable recurring revenue base from our rapid pathogen ID testing products and growing contribution to revenue from our new product sales and service offerings.”

Conference Call and Webcast

OpGen management will hold a conference call today beginning at 4:30 p.m. (EDT) to discuss third quarter 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 4676290. 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 from 7:30 p.m. E.T. through October 29, 2016 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 4676290.

About OpGen

OpGen, 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 MDRO, Acuitas Lighthouse and QuickFISH are registered trademarks of OpGen, Inc.

Forward-Looking Statements

This press release includes statements relating to the company's Acuitas® MDRO, Acuitas Lighthouse® and QuickFISH® products and services, and 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, 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 Statements of Operations and Comprehensive Loss
(unaudited)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
  2016  2015  2016  2015 
Revenue                
Product sales $730,325  $929,241  $2,705,690  $1,432,592 
Laboratory services  23,036   23,765   182,130   87,201 
Collaboration revenue  6,302   27,780   131,302   308,340 
Total revenue  759,663   980,786   3,019,122   1,828,133 
Operating expenses                
Cost of products sold  400,001   624,635   1,269,990   788,256 
Cost of services  51,802   48,467   528,733   198,691 
Research and development  2,178,818   1,788,748   6,278,829   3,897,049 
General and administrative  1,639,996   1,614,532   4,955,096   3,694,143 
Sales and marketing  1,294,640   1,032,759   4,282,628   2,962,555 
Transaction expenses     525,596      525,596 
  5,565,257   5,634,737   17,315,276   12,066,290 
Operating loss  (4,805,594)  (4,653,951)  (14,296,154)  (10,238,157)
Other expense                
Interest and other income/(expense)  623   2,513   (3,078)  9,675 
Interest expense  (41,423)  (17,482)  (109,806)  (1,746,853)
Foreign currency transaction (losses)/gains  (1,269)     2,293    
Change in fair value of derivative financial instruments           (647,342)
Total other expense  (42,069)  (14,969)  (110,591)  (2,384,520)
Loss before income taxes  (4,847,663)  (4,668,920)  (14,406,745)  (12,622,677)
                 
Provision for income taxes     1,662      1,662 
Net loss  (4,847,663)  (4,670,582)  (14,406,745)  (12,624,339)
                 
Preferred stock dividends and beneficial conversion        (332,550)  (244,508)
Net loss available to common stockholders $(4,847,663) $(4,670,582) $(14,739,295) $(12,868,847)
Net loss per common share - basic and diluted $(0.23) $(0.38) $(0.92) $(2.00)
Weighted average shares outstanding - basic and diluted  20,938,700   12,261,238   16,028,047   6,444,373 
Net loss $(4,847,663) $(4,670,582) $(14,406,745) $(12,624,339)
Other comprehensive income/(loss) - foreign currency translation  1,498   (49)  387   (49)
Comprehensive loss $(4,846,165) $(4,670,631) $(14,406,358) $(12,624,388)




OpGen, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)


  September 30, 2016  December 31, 2015 
Assets        
Current assets        
Cash and cash equivalents $4,260,905  $7,814,220 
Accounts receivable, net  446,686   678,646 
Inventory, net  830,205   826,012 
Prepaid expenses and other current assets  478,683   566,239 
Total current assets  6,016,479   9,885,117 
Property and equipment, net  862,643   1,074,710 
Goodwill  600,814   637,528 
Intangible assets, net  1,687,952   1,888,814 
Deferred offering costs  137,178    
Other noncurrent assets  270,464   270,327 
Total assets $9,575,530  $13,756,496 
Liabilities and Stockholders’ Equity        
Current liabilities        
Accounts payable $1,936,012  $2,285,792 
Accrued compensation and benefits  1,230,502   1,081,270 
Accrued liabilities  1,155,317   920,286 
Deferred revenue  64,424   50,925 
Short term notes payable  1,099,974    
Current maturities of long-term capital lease obligation  207,820   251,800 
Total current liabilities  5,694,049   4,590,073 
Deferred rent  421,913   352,985 
Note payable     993,750 
Long-term capital lease obligation and other noncurrent liabilities  184,391   328,642 
Total liabilities  6,300,353   6,265,450 
Stockholders' equity        
Common stock, $.01 par value; 200,000,000 shares authorized; 21,690,555 and 12,547,684 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively  216,905   125,477 
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2016 and December 31, 2015, respectively      
Additional paid-in capital  131,590,858   121,490,994 
Accumulated other comprehensive gain/(loss)     (1,059)
Accumulated deficit  (128,532,586)  (114,124,366)
Total stockholders’ equity  3,275,177   7,491,046 
Total liabilities and stockholders’ equity $9,575,530  $13,756,496 

 

OpGen Contact: 
Michael Farmer
Director, Marketing
(240) 813-1284
mfarmer@opgen.com 
InvestorRelations@opgen.com

Investor and Media Contact: 
MacDougall Biomedical Communications
Cammy Duong
(781) 235-3060
cduong@macbiocom.com

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