Personalis Receives New VA MVP Task Order and Record Quarterly Orders From Oncology Customers; Reconfirms Total Revenue Outlook for 2021 with Further Accelerated Oncology Growth
Personalis, Inc. (NASDAQ: PSNL) announced a new task order from the U.S. Department of Veterans Affairs Million Veteran Program (VA MVP) valued at up to $10 million. The company reported record orders exceeding $25 million in Q3 from oncology customers. Total revenue is projected at approximately $22.2 million for Q3 and around $85 million for the full year 2021. Despite a decline in VA MVP task orders due to the pandemic, oncology orders have surged, indicating a shift in revenue sources. The company expects oncology to contribute significantly to revenue growth in 2022.
- New task order from VA MVP worth up to $10 million.
- Record $25 million in oncology orders received in Q3, more than double Q3 2020 levels.
- Total revenue outlook for Q3 and full year 2021 remains unchanged at $22.2 million and $85 million respectively.
- Projected oncology revenue growth of at least 50% above 2020.
- VA MVP task orders are lower than pre-Covid levels.
- Net loss estimated between $17 million to $18 million for Q3 2021, totaling $65 million to $70 million for the full year.
- No business outlook provided for fiscal year 2022.
“We are extremely pleased with our on-going relationship with the VA MVP, which represents the largest whole genome sequencing project in the United States,” said
The performance period for the new VA MVP task order will be
Some of the new oncology orders received are for prospective projects, which are expected to provide revenue over several years, compared with retrospective projects that may be completed in less than two years. The company now expects that its oncology business will become the larger portion of its total revenue in 2022 and, long-term, the company expects that it represents Personalis’ largest market opportunity.
Updated Business Outlook
-
Total revenue to be approximately
(no change from previous outlook)$22.2 million -
Revenue from biopharma and all other customers, excluding VA MVP, to be in the range of
to$8.3 million (up from previous guidance of$8.8 million to$7.5 million )$8.5 million -
Net Loss to be in the range of
to$17 million ; estimated outstanding shares of 44 million (no change from previous outlook)$18 million
-
Total revenue to be approximately
(no change from previous outlook)$85 million -
Revenue from biopharma and all other customers, excluding VA MVP, to be in the range of
to$34 million (up from previous guidance of$35 million to$33 million )$34 million -
Net Loss to be in the range of
to$65 million ; estimated outstanding shares of 44 million (no change from previous outlook)$70 million
The company is not providing a business outlook for fiscal year 2022 at this time. However, the company is targeting approximately
Webcast and Conference Call Information
About the VA Million Veteran Program
Launched in 2011, the VA MVP is a landmark research effort aimed at better understanding how genetic variations affect health. Up to two-million veterans are expected to enroll in the VA MVP. Data and genetic samples collected through the program are stored securely and made available for studies by authorized researchers, with stringent safeguards in place to protect Veterans’ private health information. The VA MVP was enrolling veterans at 63
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “estimate,” “expect,” “outlook,” “should,” “target,” “will,” or “would” or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements regarding the company’s expectations for revenue and net loss for the third quarter and full year of 2021 and growth in 2022 revenue from biopharma and all other customers, excluding VA MVP. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: the timing and pace of new orders from customers; the extent to which the company may realize revenue from its VA MVP contract and task orders thereunder and the continued receipt of VA MVP samples; the launch of new products and new product features, such as NeXT Personal; the market adoption of offerings launched in 2020, such as Personalis’ whole exome liquid biopsy product; the timing of tissue, blood, and other specimen sample receipts from customers (including from the VA MVP), which can materially impact revenue quarter over quarter and year over year; whether orders for the NeXT Platform and revenue from biopharmaceutical and other customers increase in future periods; the success of Personalis’ collaborations; the success of the company’s international expansion plans; the evolution of cancer therapies and market adoption of the company’s services; and the ongoing COVID-19 pandemic, which may significantly impact the company’s business and operations and the business and operations of the company’s customers and suppliers. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are further described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Quarterly Report on Form 10-Q for the period ended
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