Talis Biomedical Reports Third Quarter 2022 Financial Results

Rhea-AI Summary

Talis Biomedical Corporation (Nasdaq: TLIS) reported its financial results for Q3 2022, showing significant revenue growth to $0.8 million from $0.2 million in Q3 2021, fueled by antigen testing sales. Despite this, operating expenses decreased to $26.3 million from $38.6 million in the prior year, leading to a net loss of $26.0 million, improved from a loss of $38.4 million. The company is refocusing its strategy on Women's and Sexual Health markets, implementing a 35% workforce reduction to lower expenses and aiming to reduce cash burn, with $143.8 million in cash reserves as of September 30, 2022.

Positive

• Revenue rose to $0.8 million in Q3 2022, up from $0.2 million in Q3 2021.
• Operating expenses decreased to $26.3 million from $38.6 million year-over-year.
• Cash reserves stood at $143.8 million, providing operational runway until 2025.
• Focused on pursuing 510(k) clearances for the Talis One platform.

Negative

• Net loss of $26.0 million in Q3 2022, although improved from $38.4 million in 2021.
• Discontinued commercialization of COVID-19 assay due to market dynamics.

REDWOOD CITY, Calif., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Talis Biomedical Corporation (Nasdaq: TLIS), a diagnostic company dedicated to advancing health equity and outcomes through the delivery of accurate infectious disease testing in the moment of need, at the point of care, today reported financial results for the third quarter ended September 30, 2022.

“During the third quarter, we made further progress in manufacturing the Talis One™ platform and returned to our original focus on Women’s and Sexual Health, where there remains a large unmet need for infectious disease testing at the point of care. To address these significant opportunities, we are immediately directing our efforts on the pursuit of 510(k) clearances for our highly differentiated platform and the development of multiple assay panels,” said Rob Kelley, chief executive officer at Talis. “With demonstrated manufacturing capabilities to support the development and commercialization of Talis One, plans for an expanded test menu, and a strong cash position we are confident in our pathway to deliver growth and value.”

As previously announced in August, Talis discontinued investment in commercialization in the United States of its stand-alone COVID-19 assay under Emergency Use Authorization based on evolving market dynamics with COVID testing and the current financial environment. This decision allows the company to refocus its resources on large and long-term market opportunities in Women’s and Sexual Health markets in an effort to deliver the greatest competitive advantages, revenue growth and profit margins.

To align resources with this new focus, Talis implemented a 35 percent reduction in force and additional cost-saving measures in the third quarter. The company expects to start realizing the benefit of its restructuring plan in the fourth quarter of 2022. These actions, along with reduced spending in manufacturing, inventory, consulting and infrastructure are expected to lower cash burn and fund the company’s operations into 2025.

Talis plans to provide progress updates as they are achieved or available and will not be hosting a conference call to discuss third quarter results. For further detail and discussion of the company’s financial performance, please refer to the company’s upcoming Quarterly Report on Form 10-Q for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial Results

Revenue was $0.8 million for the third quarter of 2022, compared to $0.2 million for the same period in 2021. This includes $0.7 million of product revenue for the third quarter of 2022 driven by antigen testing sales and $0.1 million of grant revenue.

Operating expenses were $26.3 million in the third quarter of 2022, compared to $38.6 million for the same period in 2021. The decrease in operating expenses was primarily driven by declines in research and development expenses from manufacturing scale-up investments that were largely completed.

Net loss was $26.0 million for the third quarter of 2022, compared to $38.4 million for the same period in 2021.

Unrestricted cash and cash equivalents on September 30, 2022, were $143.8 million.

About Talis Biomedical
Talis is dedicated to advancing health equity and outcomes through the delivery of accurate infectious disease testing in the moment of need, at the point of care. The company plans to develop and commercialize innovative products on its sample-to-answer Talis One™ system to enable accurate, low cost, and rapid molecular testing. For more information, visit talisbio.com.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or other words that convey uncertainty of future events or outcomes can be used to identify these forward-looking statements. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: our plans to advance our pipeline, including the plans to develop Talis One assays in the women’s and sexual health markets; the size and potential of our opportunity in the women’s and sexual health markets; our ability to capitalize on any competitive advantages; the potential to realize the benefit of our restructuring plan in the fourth quarter of 2022; our ability to position Talis to provide durable value to our shareholders; our future revenue growth and profit margins; and our ability to lower our cash burn, extend operations and extend our cash runway. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements including, among others: risks and uncertainties associated with development and regulatory approval, the impact to our business from global economic conditions, including the ongoing COVID-19 pandemic, and inflationary pressures and any related impact on our ability to develop our pipeline products, our ability to achieve or sustain profitability, our ability to launch and gain market acceptance for our pipeline products and to accurately forecast and meet customer demand, our ability to compete successfully, our ability to enhance our product offerings, development and manufacturing, capacity constraints or delays in production of our products, product defects or failures. These and other risks and uncertainties are described more fully in the “Risk Factors” section and elsewhere in our filings with the Securities and Exchange Commission and available at www.sec.gov, including in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements that we make in this announcement speak only as of the date of this press release, and Talis assumes no obligation to updates forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law.

Contact
Media & Investors
Emily Faucette
efaucette@talisbio.com
415-595-9407

Talis Biomedical Corporation 
Balance Sheets 
(in thousands) 

	September 30,				December 31,
	2022				2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	143,783			$	232,545
Accounts receivable, net		433				183
Inventory		2,027				—
Prepaid expenses and other current assets		4,134				3,387
Total current assets		150,377				236,115
Property and equipment, net		6,869				10,528
Operating lease right-of-use-assets		35,072				12,907
Other long-term assets		1,776				6,278
Total assets	$	194,094			$	265,828
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4,111			$	5,122
Accrued compensation		3,483				6,369
Accrued liabilities		789				6,383
Operating lease liabilities, current portion		2,995				1,232
Total current liabilities		11,378				19,106
Operating lease liabilities, long-term portion		30,330				12,745
Total liabilities	$	41,708			$	31,851
Stockholders’ equity:
Series 1 convertible preferred stock		3				3
Common stock		3				3
Additional paid-in capital		603,405				598,913
Accumulated deficit		(451,025	)			(364,942	)
Total stockholders’ equity		152,386				233,977
Total liabilities and stockholders’ equity	$	194,094			$	265,828

Talis Biomedical Corporation 
Statements of Operations and Comprehensive Loss
(in thousands, unaudited) 

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
Revenue
Grant revenue	$	66			$	218			$	1,010			$	7,335
Product revenue, net		730				—				3,545				—
Total revenue, net		796				218				4,555				7,335
Cost of product sold		1,236				—				6,059				—
Gross profit (loss)		(440	)			218				(1,504	)			7,335
Operating expenses:
Research and development		17,521				25,841				55,589				140,529
Selling, general and administrative		8,825				12,792				29,933				30,102
Total operating expenses		26,346				38,633				85,522				170,631
Loss from operations		(26,786	)			(38,415	)			(87,026	)			(163,296	)
Other income (expense), net		765				(3	)			943				(86	)
Net loss and comprehensive loss	$	(26,021	)		$	(38,418	)		$	(86,083	)		$	(163,382	)

FAQ

What were Talis Biomedical's Q3 2022 financial results?

Talis Biomedical reported revenue of $0.8 million and a net loss of $26.0 million.

What is Talis Biomedical's strategy moving forward?

The company is focusing on Women's and Sexual Health markets and seeking 510(k) clearances for its Talis One platform.

How much cash does Talis Biomedical have as of September 30, 2022?

Talis Biomedical has $143.8 million in cash and cash equivalents.

What cost-saving measures has Talis Biomedical implemented?

The company has implemented a 35% workforce reduction and other cost-saving measures to lower cash burn.