AnPac Bio Completed 1st Half Year with Increased ASP and Revenue

Rhea-AI Summary

AnPac Bio-Medical Science Co. (NASDAQ: ANPC) reported a significant rise in its paid cancer screening tests, performing 6,500 in June 2020, about 50% more than its 2019 average. Preliminary data for H1 2020 shows a slight revenue increase versus H1 2019 and a higher average selling price. The company launched two new products and achieved CAP certification for its San Jose lab. AnPac Bio aims for continued growth through product development and commercialization, projecting a strong second half of 2020.

Positive

• 6,500 paid tests performed in June 2020, 50% higher than the 2019 average.
• Slight revenue increase in H1 2020 compared to H1 2019.
• Higher average selling price due to new contracts and favorable distributor mix.
• Launch of two new products: ADME and APCS.
• CAP certification received for the San Jose lab.
• 128 issued patents as of June 2020.
• Collaborations with hospitals for clinical studies.

Negative

• None.

SAN JOSE, Calif., July 13, 2020 (GLOBE NEWSWIRE) -- AnPac Bio-Medical Science Co., Ltd. (“AnPac Bio,” the “Company” or “we”) (NASDAQ: ANPC), a biotechnology company with operations in China and the United States focused on early cancer screening and detection, pre-announced certain results from the quarter ending 6/30/20. The Company performed 6,500 paid tests in June 2020, which was almost 50% higher than the average monthly paid tests in 2019.  Based on unaudited numbers for the first half of the year in 2020 through 6/30/20, revenue was slightly higher compared to the same period in 2019, while the average selling price (ASP) increased as well over 2019.  AnPac Bio plans to file the 1^st half year results on August 28, 2020.  

Highlights during the period of the 1^st half of 2020:

• The Company successfully listed on the NASDAQ stock exchange on January 30, 2020.
• The volume of paid CDA tests picked up significantly starting in late May through the end of June, with June alone recording approximately 6,500 paid tests (50% higher than the monthly average in 2019).
• The ASP has increased due to higher pricing for new contracts and more favorable distributor mix.
• Two new products were launched, including a novel immunology test product named ADME (AnPac Defense Medical Examination) and a new cancer test package named APCS (AnPac Pan Cancer Screening) combining CDA technology with ct-DNA method.
• The San Jose, US lab received CAP certification.
• The Philadelphia, US lab completed renovation and 1^st phase equipment was moved-in.
• More patents were issued, reaching 128 issued patents in total at the end of June, 2020.
• Additional hospitals entered into collaborations with the Company in clinical studies, including a study with a leading hospital around coronavirus risks.
• Continued work on obtaining Class III medical device certification in China and laboratory developed test (LDT) in the US.

AnPac Bio’s CEO, Dr. Chris Yu, commented, “With COVID-19 under control in China, our business has picked up significantly in the second half of May through June.  As businesses have returned to work with a new increased awareness about the importance of health and relevant tests for disease prevention, our paid tests have increased.  In addition, our increased ASP for CDA tests, and as new products are beginning to contribute to revenues, we expect a strong second half of the year in 2020, and overall strong revenue growth for the full year in 2020.”

Dr. Chris Yu continued, “With our successful IPO on the NASDAQ earlier this year, we are now focusing on three major areas, (1) new product development, (2) product commercialization, and (3) sales, with an emphasis on execution. Our results in May and June of this year I believe demonstrate the traction that we are achieving and we are showing real progress in our growth.”

About AnPac Bio

AnPac Bio is a biotechnology company focused on early cancer screening and detection, with 128 issued patents as of June 22, 2020. With two certified clinical laboratories in China and one CLIA and CAP accredited clinical laboratory in the United States, AnPac Bio performs a suite of cancer screening and detection tests, including CDA (Cancer Differentiation Analysis), bio-chemical, immunological, and genomics tests. In a 2019 market research report by Frost & Sullivan, AnPac Bio ranked second worldwide among companies offering next-generation early cancer screening and detection technologies in terms of the number of clinical samples for cancer screening and detection, based on approximately 35,000 clinical samples as at June 30, 2019. AnPac Bio’s CDA technology platform has been shown in retrospective validation studies to be able to detect the risk of over 20 different cancer types with high sensitivity and specificity.

For more information, please visit: https://www.Anpacbio.com.

For investor and media inquiries, please contact:

Company:
Phil Case, Marketing and Investor Relations
Phone: +1-267-810-6776 (US)
Email: phil_case@AnPacbio.com

Investor Relations:
Ascent Investor Relations LLC
Tina Xiao, President
Phone: +1-917-609-0333 (US)
Email: tina.xiao@ascent-ir.com   

Safe Harbor Statement

This announcement contains 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. These forward-looking statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and are relating to the Company's future financial and operating performance. The Company has attempted to identify forward-looking statements by terminologies including "believes," "estimates," "anticipates," "expects," "plans," "projects," "intends," "potential," “target,” “aim,” “predict,” “outlook,” “seek,” “goal” “objective,” “assume,” “contemplate,” “continue,” “positioned,” “forecast,” “likely,” "may," "could," "might," "will," "should," "approximately" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are based on current expectations, assumptions and uncertainties involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. These statements also involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to be materially different from those expressed or implied by any forward-looking statement. Known and unknown risks, uncertainties and other factors include, but are not limited to, the implementation of our business model and growth strategies; trends and competition in the cancer screening and detection market; our expectations regarding demand for and market acceptance of our cancer screening and detection tests and our ability to expand our customer base; our ability to obtain and maintain intellectual property protections for our CDA technology and our continued research and development to keep pace with technology developments; our ability to obtain and maintain regulatory approvals from the NMPA, the FDA and the relevant U.S. states and have our laboratories certified or accredited by authorities including the CLIA; our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations; general economic and business conditions in China and elsewhere; our ability to hire and maintain key personnel; our relationship with our major business partners and customers; and the duration of the coronavirus outbreaks and their potential adverse impact on the economic conditions and financial markets and our business and financial performance, such as resulting from reduced commercial activities due to quarantines and travel restrictions instituted by China, the U.S. and many other countries around the world to contain the spread of the virus. Additionally, all forward-looking statements are subject to the “Risk Factors” detailed from time to time in the Company's most recent Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.