OpGen Reports Third Quarter 2022 Financial Results and Provides Business Update

Rhea-AI Summary

OpGen reported its third quarter 2022 results, highlighting a decline in revenue to approximately $0.4 million from $1.2 million year-over-year. Total revenue for the nine months ended September 30, 2022, was $1.9 million compared to $2.9 million for the same period in 2021. Operating expenses rose significantly to about $14.0 million, leading to a net loss of $14.1 million ($0.30 per share). The company completed two commercial installations of the Acuitas AMR Gene Panel and entered several collaborations, including agreements with BioVersys AG and FIND, while maintaining a cash position of $10.3 million.

Positive

• Completed two commercial installations of the Acuitas AMR Gene Panel.
• Entered collaborations with BioVersys AG and FIND, potentially enhancing product development.
• Upcoming clinical trial data read-out for UTI, which may lead to FDA submission in 2023.
• Anticipated revenue growth from new commercial contracts across Unyvero and Acuitas products.

Negative

• Total revenue declined to approximately $0.4 million from $1.2 million year-over-year.
• Operating expenses rose significantly to about $14.0 million, up from $6.3 million in Q3 2021.
• Net loss increased to $14.1 million, compared to $6.1 million in the same quarter last year.
• Cash and cash equivalents decreased to $10.3 million from $36.1 million at the beginning of the year.

• Completes first two commercial customer installations for Acuitas AMR Gene Panel
• OpGen subsidiary, Curetis, signed collaboration agreement with BioVersys AG and R&D collaboration agreement with FIND for the Unyvero A30 RQ platform
• Elects Yvonne Schlaeppi as new, independent non-executive director to the board
• Management conference call scheduled for November 10, 2022, at 4:30 p.m. EST

ROCKVILLE, Md., Nov. 10, 2022 (GLOBE NEWSWIRE) -- OpGen, Inc. (Nasdaq: OPGN, “OpGen” or “the Company”), a precision medicine company harnessing the power of molecular diagnostics and bioinformatics to help combat infectious disease, reported its third quarter 2022 financial and operating results. Management will host an investor call to discuss quarterly results and provide a business update.

Oliver Schacht, President & CEO of OpGen, commented, “During the third quarter we reached multiple agreements and entered into collaborations with various partners. These include our research collaboration agreement with the Belgian National Reference Center (BNRC), an R&D collaboration with FIND, our second commercial installation of the Acuitas AMR Gene Panel, a new commercial contract for Unyvero in the U.S., and a collaboration agreement with BioVersys. We are seeing progress on both the R&D and commercial fronts and look forward to the upcoming progress.”

Mr. Schacht continued, “As we proceed through 2022 and move into the calendar year of 2023, we have several upcoming catalysts and milestones to look forward to, including our UTI clinical trial data read-out and anticipated subsequent FDA submission, proceeds from the FIND collaboration as well as its potential future extension and expansion, and several potential new commercial contracts with U.S. customers across Unyvero and Acuitas products. We look forward to announcing these potential milestones as we continue to focus on building shareholder value.”

Third Quarter 2022 Financial Results of OpGen, Inc.

• Total revenue for the third quarter of 2022 was approximately $0.4 million, compared with approximately $1.2 million in the third quarter of 2021. Total revenue for the nine months ended September 30, 2022 was approximately $1.9 million, compared with approximately $2.9 million for the nine months ended September 30, 2021.
• Operating expenses for the third quarter of 2022 were approximately $14.0 million, compared with approximately $6.3 million in the third quarter of 2021. Operating expenses for the nine months ended September 30, 2022 were approximately $26.5 million, compared with approximately $20.4 million for the nine months ended September 30, 2021.
• The net loss available to common stockholders for the third quarter of 2022 was approximately $14.1 million, or $0.30 per share, compared with approximately $6.1 million, or $0.16 per share, in the third quarter of 2021. Net loss for the nine months ended September 30, 2022 was approximately $26.7 million, compared with approximately $28.0 million for the nine months ended September 30, 2021.
• Cash and cash equivalents were approximately $10.3 million as of September 30, 2022, compared with $36.1 million as of December 31, 2021.

In the third quarter and year to date, the Company reached the following key milestones:

• OpGen subsidiary, Ares Genetics, signed a research collaboration agreement with the Belgian National Reference Center (BNRC) for invasive Streptococcus pneumoniae at the University Hospital Leuven.
• OpGen subsidiary, Ares Genetics, launched the ARESiss isolate sequencing service in the U.S.
• OpGen completed enrollment of over 1,800 patient samples for the prospective multicenter clinical trial in the U.S. for the Unyvero UTI Panel on the Unyvero A50 platform.
• OpGen subsidiary, Curetis, signed an R&D collaboration agreement with FIND for the Unyvero A30 RQ platform.
• OpGen signed an additional commercial contract for the Acuitas AMR Gene Panel and initiated the first two customer sites in the U.S. with installations, trainings and delivery of Acuitas kits.
• OpGen subsidiary, Curetis, signed a collaboration agreement with BioVersys AG from Switzerland to use the Unyvero platform in BioVersys’ upcoming Phase II clinical trial.
• OpGen received an update from Beijing Clear Biotech’s regulatory advisors about feedback from China’s NMPA regarding the Unyvero A50 pneumonia product and the need to resubmit our filing under a new electronic filing regime that NMPA has recently implemented.
• Nasdaq granted OpGen an extension until February 27, 2023 to meet Nasdaq’s minimum bid price requirement.
• This week, OpGen's board elected Yvonne Schlaeppi as a new, independent non-executive member of the Company’s board of directors. Ms. Schlaeppi brings legal, governance, life sciences and international experience to the board.  Since 2011, Ms. Schlaeppi has served as a Managing Partner of Stratevise LLC, an international strategic advisory firm that she co-founded. Prior to founding Stratevise, Ms. Schlaeppi served as General Counsel at Global Enterprise Technologies, Passport & ID, a high-security document printing solutions provider and systems integrator, from 2007 to 2011, and as Executive Vice President, General Counsel and Corporate IP Officer at Organon BioSciences, a global pharmaceutical, animal health and biotech group based in the Netherlands, from 2006 until its sale in 2007. Prior to that, Ms. Schlaeppi was a partner at the Boston-based law firm of Palmer & Dodge LLP, where she served as Chairperson of that firm’s International Practice Group. Ms. Schlaeppi has been recognized by the National Association of Corporate Directors as Directorship Certified^®, has served on the board of directors of several public companies and currently is a member of the board of AstroNova, Inc.

In terms of guidance, the Company anticipates:

• The unblinding of data from the Unyvero UTI trial around year-end and subsequent FDA submission in 2023;
• To enter into new commercial contracts in the coming months across Unyvero and Acuitas products, which contracts could have the potential to drive revenue growth for 2023;
• Further developing ARES services and progressing strategic collaborations and partnerships with U.S. key accounts and leading organizations; and
• Overall, 2022 revenue in a range of approximately $2.5 to $3 million from products and services as well as collaboration business globally.
• OpGen will be holding a special meeting of stockholders on November 30, 2022 to vote on the proposal for a potential reverse stock split.
• The Company will continue to explore additional strategic and tactical equity and debt financing opportunities as well as potential strategic alternative options throughout the remainder of the year and into 2023 to possibly further strengthen its cash position.

Conference Call Information

OpGen’s management will host a conference call today, November 10, at 4:30 p.m. EST, to discuss the third quarter financial results and business activities, as well as answer analyst questions.

	Conference Call Details
	U.S. Dial-in Number:	1-877-704-4453
	International Dial-in Number:	1-201-389-0920
	Webcast:   https://viavid.webcasts.com/starthere.jsp?ei=1569725&tp_key=91a31a2b1f
	Conference ID:	13732787

Following the conclusion of the conference call, a replay will be available through November 24^th, 2022. The live, listen-only webcast of the conference call may also be accessed by visiting the Investors section of the Company’s website at www.opgen.com.

A replay of the webcast will be available following the conclusion of the call and will be archived on the Company’s website for 90 days. Replay access information is below:

Replay Details
	U.S. Dial-in Number:	1-844-512-2921
	International Dial-in Number:	1-412-317-6671
	Replay PIN:	13732787

About OpGen, Inc.

OpGen, Inc. (Rockville, MD, U.S.A.) is a precision medicine company harnessing the power of molecular diagnostics and bioinformatics to help combat infectious disease. Along with our subsidiaries, Curetis GmbH and Ares Genetics GmbH, we are developing and commercializing molecular microbiology solutions helping to guide clinicians with more rapid and actionable information about life threatening infections to improve patient outcomes, and decrease the spread of infections caused by multidrug-resistant microorganisms, or MDROs. OpGen’s current product portfolio includes Unyvero, Acuitas AMR Gene Panel, and the ARES Technology Platform including ARESdb, NGS technology and AI-powered bioinformatics solutions for AMR surveillance, outbreak analysis, and antibiotic response prediction including ARESiss, ARESid, and AREScloud, as well as the Curetis CE-IVD-marked PCR-based SARS-CoV-2 test kit.

For more information, please visit www.opgen.com.

Forward-Looking Statements

This press release includes statements regarding OpGen’s third quarter 2022 financial results and the current business of OpGen. These statements and other statements regarding OpGen’s 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 success of our commercialization efforts, our ability to successfully, timely and cost-effectively develop, seek and obtain regulatory clearance for and commercialize our product and services offerings, the rate of adoption of our products and services by hospitals and other healthcare providers, the fact that we may not effectively use proceeds from recent financings, the continued realization of expected benefits of our business combination transaction with Curetis GmbH, the continued impact of COVID-19 on the Company’s operations, financial results, and commercialization efforts as well as on capital markets and general economic conditions, our ability to satisfy debt obligations under our loan with the European Investment Bank, the effect of the military action in Russia and Ukraine on our distributors, collaborators and service providers, our liquidity and working capital requirements, 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. 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.
Consolidated Balance Sheets
(unaudited)
	September 30, 2022				December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	10,275,654			$	36,080,392
Accounts receivable, net		665,313				1,172,396
Inventory		771,864				1,239,456
Prepaid expenses and other current assets		1,678,729				1,250,331
Total current assets		13,391,560				39,742,575
Property and equipment, net		3,054,990				4,011,748
Finance lease right-of-use assets, net		4,347				90,467
Operating lease right-of-use assets		1,472,934				1,814,396
Goodwill		—				7,453,007
Intangible assets, net		12,001,036				14,530,209
Strategic inventory, net		2,614,805				3,472,337
Other noncurrent assets		419,495				551,794
Total assets	$	32,959,167			$	71,666,533
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	682,592			$	1,307,081
Accrued compensation and benefits		1,391,145				1,621,788
Accrued liabilities		1,046,865				1,965,845
Deferred revenue		194,960				—
Short-term notes payable		8,342,715				14,519,113
Short-term finance lease liabilities		6,748				43,150
Short-term operating lease liabilities		346,629				459,792
Total current liabilities		12,011,654				19,916,769
Note payable		4,108,421				7,176,251
Derivative liabilities		146,207				228,589
Long-term finance lease liabilities		1,121				3,644
Long-term operating lease liabilities		2,631,957				2,977,402
Other long term liabilities		121,496				146,798
Total liabilities		19,020,856				30,449,453
Stockholders' equity
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2022 and December 31, 2021, respectively		—				—
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,338,500 and 46,450,250 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		483,386				464,503
Additional paid-in capital		277,406,700				275,708,490
Accumulated deficit		(262,289,652	)			(235,541,539	)
Accumulated other comprehensive (loss)/income		(1,662,123	)			585,626
Total stockholders’ equity		13,938,311				41,217,080
Total liabilities and stockholders’ equity	$	32,959,167			$	71,666,533

OpGen, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Revenue
Product sales	$	359,112			$	643,887			$	1,614,435			$	1,479,270
Laboratory services		31,016				192,753				94,515				643,602
Collaboration revenue		58,585				402,492				176,713				757,591
Total revenue		448,713				1,239,132				1,885,663				2,880,463
Operating expenses
Cost of products sold		1,886,191				648,298				2,824,577				1,544,932
Cost of services		17,239				203,314				63,450				446,232
Research and development, net		2,031,113				2,382,303				6,621,310				8,055,384
General and administrative		2,020,452				2,088,226				6,779,773				7,444,138
Sales and marketing		1,031,496				1,003,577				3,252,277				2,705,378
Impairment of right-of-use asset		—				—				—				170,714
Goodwill impairment charge		6,975,520				—				6,975,520				—
Total operating expenses		13,962,011				6,325,718				26,516,907				20,366,778
Operating loss		(13,513,298	)			(5,086,586	)			(24,631,244	)			(17,486,315	)
Other expense
Gain on extinguishment of debt		—				—				—				259,353
Warrant inducement expense		—				—				—				(7,755,541	)
Interest and other income, net		11,174				31,844				28,147				41,471
Interest expense		(569,306	)			(1,222,867	)			(2,618,799	)			(3,586,018	)
Foreign currency transaction gains		(51,547	)			229,074				419,160				655,774
Change in fair value of derivative financial instruments		18,995				(8,161	)			54,623				(122,572	)
Total other expense		(590,684	)			(970,110	)			(2,116,869	)			(10,507,533	)
Loss before income taxes		(14,103,982	)			(6,056,696	)			(26,748,113	)			(27,993,848	)
Provision for income taxes		—				—				—				—
Net loss	$	(14,103,982	)		$	(6,056,696	)		$	(26,748,113	)		$	(27,993,848	)
Net loss available to common stockholders	$	(14,103,982	)		$	(6,056,696	)		$	(26,748,113	)		$	(27,993,848	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.30	)		$	(0.16	)		$	(0.57	)		$	(0.79	)
Weighted average shares outstanding - basic and diluted		47,656,972				38,270,250				46,915,880				35,373,397
Net loss	$	(14,103,982	)		$	(6,056,696	)		$	(26,748,113	)		$	(27,993,848	)
Other comprehensive loss - foreign currency translation		(536,758	)			(597,527	)			(2,247,749	)			(1,146,355	)
Comprehensive loss	$	(14,640,740	)		$	(6,654,223	)		$	(28,995,862	)		$	(29,140,203	)

OpGen:
Oliver Schacht
President and CEO
InvestorRelations@opgen.com

OpGen Press Contact:
Matthew Bretzius 
FischTank Marketing and PR
matt@fischtankpr.com

OpGen Investor Contact:
Alyssa Factor
Edison Group
afactor@edisongroup.com

FAQ

What were OpGen's total revenues for Q3 2022?

Total revenue for Q3 2022 was approximately $0.4 million, a decline from $1.2 million in Q3 2021.

What is the net loss reported by OpGen for Q3 2022?

OpGen reported a net loss of approximately $14.1 million, or $0.30 per share, for Q3 2022.

What collaborations did OpGen announce recently?

OpGen announced collaborations with BioVersys AG for the Unyvero platform and with FIND for R&D activities.

What is OpGen's guidance for 2022 revenue?

OpGen anticipates 2022 revenue to be in the range of approximately $2.5 to $3 million from products, services, and collaborations.

When is OpGen's next management conference call?

OpGen will host a management conference call on November 10, 2022, at 4:30 p.m. EST.