HTG Molecular Diagnostics Reports Third Quarter 2020 Results
HTG Molecular Diagnostics (Nasdaq: HTGM) reported Q3 2020 financial results, showing total revenue of $1.8 million, down from $5.4 million year-over-year due to COVID-19 impacts. Product revenue totaled $1.7 million, down from $4.3 million, while collaborative development services generated $0.1 million, down from $1.1 million. The company posted a net loss of $5.2 million versus $4.6 million last year. Despite challenges, HTG secured a 10-year partnership with QIAGEN and is pivoting towards non-oncology markets to mitigate revenue drops.
- Secured a 10-year Commercialization and Distribution Agreement with QIAGEN, enhancing global market reach.
- Introduced HTG EdgeSeq Reveal version 3.0, improving analytical capabilities for oncology applications.
- Total revenue decreased to $1.8 million, significantly lower than $5.4 million in Q3 2019.
- Net loss increased to $5.2 million compared to $4.6 million in the same quarter last year.
- Product revenue dropped to $1.7 million, down from $4.3 million year-over-year.
Call scheduled for today, November 10, at 4:30pm ET
TUCSON, Ariz., Nov. 10, 2020 (GLOBE NEWSWIRE) -- HTG Molecular Diagnostics, Inc. (Nasdaq: HTGM) (HTG), a life science company whose mission is to advance precision medicine, today reported its financial results for the quarter ended September 30, 2020.
Recent Business Highlights
- Released HTG EdgeSeq Reveal version 3.0, adding additional software functionalities, including analytic capabilities for use with HTG’s entire RUO profiling assay menu and new RUO oncology applications. HTG EdgeSeq Reveal, originally launched in January 2019, is a web-based biostatistical analysis software suite designed to accelerate customer research by streamlining statistical analysis of samples processed with HTG’s RUO profiling assays.
- Entered into a 10-year Commercialization and Distribution Agreement (Master Agreement) with QIAGEN Manchester Limited (QIAGEN), providing the foundation for HTG and QIAGEN to combine their technological and commercial strengths with the goal to offer pharmaceutical companies global development, distribution and commercialization capabilities for companion diagnostic assays developed on the HTG EdgeSeq platform.
“As the impact of COVID-19 placed continued pressure on our core oncology business, including planned studies and laboratory operations of our customers in the third quarter of 2020, we continued to make strategic shifts in our business into areas less impacted by the pandemic,” said John Lubniewski, President and CEO of HTG. “We also believe strategic adjustments made over the past several months to lessen the impact of COVID-19 on our business are working. These efforts have focused on customer diversification to include a larger number of smaller and mid-sized biopharma customers and academic medical centers who have shown signs of returning to work more quickly than our larger customers. We are also targeting the large immune response market, which is often a new call point with our current customer base. Immune response target markets include, but are not limited to, autoimmune disorder and infectious disease. The ultimate impact of COVID-19 remains uncertain, but we are seeing positive trends in non-oncology opportunities and believe direct revenue from our core oncology business will begin to recover to pre-COVID levels in the first half of next year.”
Mr. Lubniewski continued, “Our product development team continued to perform on our key milestones during the quarter. We have produced our first white paper on technical feasibility for our approximately 20,000 gene whole transcriptome (WTTx) HTG EdgeSeq panel, and we believe we remain on track to delivering upcoming development and commercialization milestones as well. We have positioned ourselves through careful cost savings, strategic initiatives and a continued focus on strengthening our technology to meet demand and to grow when we and our customers are able to return to normal operations.”
Third Quarter 2020 Financial Highlights:
Total revenue for the quarter ended September 30, 2020 was
Product and product-related services revenue was
Collaborative development services revenue for the quarter ended September 30, 2020 was
Net loss from operations for the quarter ended September 30, 2020 was
Cash, cash equivalents and short-term available-for-sale securities totaled
Conference Call and Webcast:
HTG will host a conference call for the investment community today beginning at 4:30 p.m. Eastern Time. Conference call and webcast details are as follows:
| Date: | Tuesday, November 10, 2020 | |
| Time: | 4:30 p.m. Eastern Time | |
| Toll Free: | (877) 407-0789 | |
| International: | (201) 689-8562 | |
| Conference ID: | 13711846 | |
| Webcast: | http://public.viavid.com/index.php?id=141926 |
About HTG:
HTG is focused on NGS-based molecular profiling. The company’s proprietary HTG EdgeSeq technology automates complex, highly multiplexed molecular profiling from solid and liquid samples, even when limited in amount. HTG’s customers use its technology to identify biomarkers important for precision medicine, to understand the clinical relevance of these discoveries, and ultimately to identify treatment options. Its mission is to empower precision medicine.
Safe Harbor Statement:
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential benefits of the Master Agreement with QIAGEN, the anticipated duration of the impact of the COVID-19 pandemic on our business, our being on track to deliver development milestones, our belief that direct revenue from our core oncology business will begin to recover to pre-COVID levels in the first half of next year, and our expectations for increased demand for our products and services in the future and our ability to meet those demands and for growth in our business. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based upon management’s current expectations, are subject to known and unknown risks, and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation, risks associated with the impact of the COVID-19 pandemic on us and our customers; the risk that we may not establish new and significant collaboration development arrangements; risks associated with our ability to develop and commercialize our products, including our WTTx product; the risk that our products and services may not be adopted by biopharmaceutical companies or other customers as anticipated, or at all; our ability to manufacture our products to meet demand; the level and availability of third party payor reimbursement for our products; our ability to protect our intellectual property rights and proprietary technologies; our ability to operate our business without infringing the intellectual property rights and proprietary technology of third parties; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; and product liability claims. These and other factors are described in greater detail in our filings with the Securities and Exchange Commission, including without limitation our Quarterly Report on Form 10Q for the quarter ended September 30, 2020. All forward-looking statements contained in this press release speak only as of the date on which they were made, and we undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Contact:
Ashley Robinson
Phone: (617) 430-7577
Email: arr@lifesciadvisors.com
-Financial tables follow-
| HTG Molecular Diagnostics, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product and product-related services | $ | 1,701,068 | $ | 4,311,043 | $ | 5,417,731 | $ | 11,397,916 | ||||||||
| Collaborative development services | 76,030 | 1,093,750 | 548,135 | 3,006,022 | ||||||||||||
| Total revenue | 1,777,098 | 5,404,793 | 5,965,866 | 14,403,938 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of product and product-related services revenue | 940,892 | 2,939,007 | 2,931,026 | 7,492,905 | ||||||||||||
| Selling, general and administrative | 4,752,321 | 4,516,341 | 13,683,069 | 13,657,917 | ||||||||||||
| Research and development | 1,255,416 | 2,570,355 | 4,914,467 | 7,898,742 | ||||||||||||
| Total operating expenses | 6,948,629 | 10,025,703 | 21,528,562 | 29,049,564 | ||||||||||||
| Operating loss | (5,171,531 | ) | (4,620,910 | ) | (15,562,696 | ) | (14,645,626 | ) | ||||||||
| Other income (expense), net | (238,676 | ) | (123,000 | ) | (482,599 | ) | (259,552 | ) | ||||||||
| Loss on extinguishment of MidCap Credit Facility and QNAH Convertible Note | — | — | (522,394 | ) | — | |||||||||||
| Net loss before income taxes | (5,410,207 | ) | (4,743,910 | ) | (16,567,689 | ) | (14,905,178 | ) | ||||||||
| Benefit from (provision for) income taxes | (1,581 | ) | 3,678 | (12,548 | ) | (3,170 | ) | |||||||||
| Net loss | $ | (5,411,788 | ) | $ | (4,740,232 | ) | $ | (16,580,237 | ) | $ | (14,908,348 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.07 | ) | $ | (0.15 | ) | $ | (0.25 | ) | $ | (0.50 | ) | ||||
| Shares used in computing net loss per share, basic and diluted | 72,323,436 | 31,367,044 | 67,567,031 | 29,551,836 | ||||||||||||
| HTG Molecular Diagnostics, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| September 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 18,884,468 | $ | 7,619,748 | ||||
| Short-term investments available-for-sale, at fair value | 11,632,160 | 25,410,222 | ||||||
| Restricted cash | — | 3,270,247 | ||||||
| Accounts receivable | 1,370,201 | 3,164,176 | ||||||
| Inventory, net | 1,538,553 | 1,269,667 | ||||||
| Prepaid expenses and other | 946,979 | 633,522 | ||||||
| Total current assets | 34,372,361 | 41,367,582 | ||||||
| Operating lease right-of-use assets | 746,185 | 1,209,145 | ||||||
| Property and equipment, net | 1,526,698 | 2,240,133 | ||||||
| Other non-current assets | 64,861 | 302,409 | ||||||
| Total assets | $ | 36,710,105 | $ | 45,119,269 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 875,236 | $ | 1,662,583 | ||||
| Accrued liabilities | 1,386,825 | 1,870,296 | ||||||
| Contract liabilities - current | 348,274 | 426,014 | ||||||
| NuvoGen obligation - current | 645,949 | 1,152,233 | ||||||
| Short-term debt, net | 2,266,884 | 2,987,667 | ||||||
| Operating lease liabilities - current | 436,663 | 758,932 | ||||||
| Other current liabilities | 26,620 | 41,134 | ||||||
| Total current liabilities | 5,986,451 | 8,898,859 | ||||||
| NuvoGen obligation - non-current, net of discount | 4,455,968 | 4,498,777 | ||||||
| Long-term debt, net | 9,446,985 | 6,871,545 | ||||||
| Operating lease liabilities - non-current | 390,233 | 636,340 | ||||||
| Other non-current liabilities | 229,114 | 244,114 | ||||||
| Total liabilities | 20,508,751 | 21,149,635 | ||||||
| Commitments and Contingencies | ||||||||
| Total stockholders’ equity | 16,201,354 | 23,969,634 | ||||||
| Total liabilities and stockholders' equity | $ | 36,710,105 | $ | 45,119,269 | ||||
FAQ
What were HTGM's financial results for the third quarter of 2020?
How did HTG's net loss change in Q3 2020?
What is the significance of HTG's agreement with QIAGEN?
How has COVID-19 impacted HTG's business operations?
