On Track for FY 2022 Guidance
- Q1 2022 revenue rises 3% to €10.3 million
- Completed phase out of COVID-19 Business segment in Q1 2022
- Positioning Pharma and Diagnostics for post-COVID recovery and growth in 2022 and beyond
- Reaffirms FY 2022 guidance of 15-20% revenue growth
“We are on track with our renewed focus on the Core Business. The Diagnostics segment continued to show double digit growth rates year-over-year and is planned to grow faster than the market. We are on target to enhance our Pharma offering – broadening our commercial team, marketing a differentiated product portfolio, and growing the pipeline to return the Pharma segment to steady growth in 2022. We see the extension of the market access partnership with Takeda and the new contract with Agios as important proof points of our biopharma strategy,” stated
First Quarter 2022 Financial Highlights
- Overall revenues of €10.3 million (excluding the discontinued operation) were recorded in Q1 2022, a 3% increase compared to €10.0 million in Q1 2021
- Diagnostics segment revenues of €7.1 million in Q1 2022, an increase of 11% compared to €6.4 million in Q1 2021, reflecting the fourth consecutive quarter of year-over-year revenues growth in the segment. The increase in revenues was primarily related to an increase in revenues from Whole Exome Sequencing (WES) and Whole Genome Sequencing (WGS) of 18%
- Pharma segment revenues of €3.2 million in Q1 2022, a decrease of 10% compared to €3.6 million in Q1 2021
- The COVID-19 Testing Business was phased out in Q1 2022 and reported as discontinued operations but no longer as a segment. Revenues from the COVID-19 Business were €19.5 million in Q1 2022, compared to €55.0 million in Q1 2021. Discontinued operations in the period contributed positively to net income and cash flow
- Net loss of €6.4 million in Q1 2022, compared to net loss of €4.8 million in Q1 2021
- Total segment adjusted EBITDA of €1.9 million for the two continuing segments was recorded in Q1 2022, compared to €2.6 million in Q1 2021. This mainly reflects the lower proportion of revenues in the higher margin Pharma segment
- Adjusted EBITDA from COVID-19 business for the three months ended
March 31, 2022 was €6,106 thousand as compared to €10,167 thousand for the three months endedMarch 31, 2021 . The decrease was driven by the reduction in COVID-19 test order intakes as the business was phased out - Cash and cash equivalents were €42.7 million as of
March 31, 2022 , compared to €17.8 million for the period endingDecember 31, 2021 . The reported cash position per end of Q1 2022 reflects proceeds from the debt (first tranche) and equity financings completed inFebruary 2022
“With the completion of the financings earlier this year,
Recent Business Highlights
Corporate
- Appointed executive and Supervisory Board leadership, including
Kim Stratton as CEO,Miguel Coego as CFO, and Dr.Andreas Busch as Vice Chairman of the Supervisory Board - Closed
$62 million aggregate equity and debt financings to support growth plan, including a €15 million (approx.$17 million ) private placement incl. 1.3 million warrants at an exercise price of$7.72 per share from leading growth investors and a$45 million senior secured loan fromOxford Finance in Q1 2022, with the second tranche of the loan subject to operating covenants - Added ~28,000 individuals to the CENTOGENE Biodatabank in Q1 2022;
CENTOGENE believes its Biodatabank is the world’s largest real-world data repository for rare and neurodegenerative diseases, which includes samples as well as data and cell lines from patients from over 120 countries - Authored 15 peer-reviewed scientific publications in Q1 2022, focused on generating critical insights into an array of diseases, including rare genetic and neurological diseases, e.g., the prevalence of Fabry disease among patients with Parkinson's disease
- Phased out the COVID-19 testing services end of Q1 2022 according to plan
Pharma
- Expanded partnership with Agios Pharmaceuticals for clinical development of PYRUKYND® (mitapivat) to treat children with rare blood disease
- Extended market access partnership with Takeda to accelerate path from diagnosis to available treatments for rare metabolic and rare neurodegenerative diseases
- Expanded Data Access and Collaboration R&D Agreement with Pfizer to advance discovery and validation of novel genetic targets as candidates for the development of new therapies for rare diseases
- Initiated collaboration with Insilico Medicine for Niemann-Pick disease Type C (NPC) target discovery, leveraging the CENTOGENE Biodatabank
- Currently leading three observational studies for patient finding and market access in collaboration with our pharma partners in rare and neurodegenerative disorders
Diagnostics
- Reported order intake of approximately 16,300 test requests in our diagnostics segment, representing an increase of approximately 24% as compared to approximately 13,100 test requests in the same period in 2021
- Launch of CENTOGENE MOx – a portfolio of single-step multiomic solutions that combines sequencing and biochemical testing to enable early diagnosis, improved prognosis, and precision medicine
- Global release of CentoCloud, a cloud-based, clinical decision support platform enabling decentralized analysis, interpretation, and quality reporting for laboratories around the world
- Received CE-mark for CentoCloud, making it one of the only decentralized SaaS and clinical decision support platforms compliant with European IVD regulatory framework
- Major Next Generation Sequencing (NGS) panel update with more than 3,000 genes revised and 1,864 genes added to maximize the clinical utility for rare metabolic and neurodegenerative diseases
- Contributed to
Europe -wide efforts to update guidelines for WGS in rare disease diagnostics
2022 Financial Guidance
The Company has reaffirmed its previously communicated 2022 annual revenue guidance for year-over-year revenue growth of 15% to 20%. As a result,
About
To discover more about our products, pipeline, and patient-driven purpose, visit www.centogene.com and follow us on LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the
Unaudited interim condensed consolidated statements of comprehensive loss
for the three months ended
(in EUR k)
For the three months ended | ||||||||
Note | 2022 | 2021* | ||||||
Revenue | 4, 5 | 10,327 | 9,981 | |||||
Cost of sales | 6,450 | 6,208 | ||||||
Gross profit | 3,877 | 3,773 | ||||||
Research and development expenses | 4,614 | 4,335 | ||||||
General administrative expenses | 7,906 | 11,596 | ||||||
Selling expenses | 2,394 | 1,949 | ||||||
Impairment of financial assets | 8 | 154 | 95 | |||||
Other operating income | 6.1 | 733 | 366 | |||||
Other operating expenses | 6.2 | 1 | 34 | |||||
Operating loss | (10,459 | ) | (13,870 | ) | ||||
Changes in fair value of warrants | 11.2 | 238 | — | |||||
Interest and similar income | 1 | — | ||||||
Interest and similar expense | 859 | 259 | ||||||
Financial costs, net | (620 | ) | (259 | ) | ||||
Loss before taxes from continuing operations | (11,079 | ) | (14,129 | ) | ||||
Income tax expenses | 4 | — | ||||||
Loss for the period from continuing operations | (11,083 | ) | (14,129 | ) | ||||
Net income from discontinued operations, net of tax | 7 | 4,601 | 9,240 | |||||
Loss for the period | (6,482 | ) | (4,889 | ) | ||||
Other comprehensive income, all attributable to equity holders of the parent | 94 | 121 | ||||||
Total comprehensive loss | (6,388 | ) | (4,768 | ) | ||||
Attributable to: | ||||||||
Equity holders of the parent | (6,415 | ) | (4,803 | ) | ||||
Non‑controlling interests from continuing operations | — | — | ||||||
Non‑controlling interests from discontinued operations | 27 | 35 | ||||||
(6,388 | ) | (4,768 | ) | |||||
Net loss per share - Basic and diluted from (in EUR) | ||||||||
Continuing operations | (0.48 | ) | (0.63 | ) | ||||
Loss attributable to parent | (0.28 | ) | (0.22 | ) | ||||
*The comparative numbers have been re-presented as a result of the discontinued operations. Refer to Note 7- Discontinued Operations.
The accompanying notes form an integral part of these unaudited interim condensed consolidated financial statements.
Unaudited interim condensed consolidated statements of financial position
as of
(in EUR k)
Assets | Note | |||||
Revised | ||||||
Non‑current assets | ||||||
Intangible assets | 8,183 | 9,194 | ||||
Property, plant and equipment* | 2.2 | 7,674 | 9,464 | |||
Right-of-use assets | 17,972 | 18,904 | ||||
Other assets | 8 | 2,972 | 2,972 | |||
36,801 | 40,534 | |||||
Current assets | ||||||
Inventories | 2,067 | 3,869 | ||||
Trade receivables and contract assets | 8 | 21,125 | 24,337 | |||
Other assets | 8 | 5,443 | 5,453 | |||
Cash and cash equivalents | 9 | 42,666 | 17,818 | |||
71,301 | 51,477 | |||||
108,102 | 92,011 | |||||
Equity and liabilities | Note | |||||||
Revised | ||||||||
Equity | ||||||||
Issued capital | 10 | 3,250 | 2,708 | |||||
Capital reserve | 10 | 143,456 | 133,897 | |||||
Retained earnings and other reserves | (114,120 | ) | (107,705 | ) | ||||
Non‑controlling interests | 220 | 193 | ||||||
32,806 | 29,093 | |||||||
Non‑current liabilities | ||||||||
Non‑current loans | 11,1 | 21,890 | — | |||||
Lease liabilities* | 11,1 | 14,540 | 15,394 | |||||
Deferred tax liabilities | 59 | 79 | ||||||
Government grants | 11,2 | 7,506 | 8,028 | |||||
Warrants liability | 11,2 | 2,603 | — | |||||
46,598 | 23,501 | |||||||
Current liabilities | ||||||||
Government grants | 11,2 | 1,517 | 1,368 | |||||
Current loans | 11,1 | 3,574 | 3,815 | |||||
Lease liabilities* | 2.2, 11.1 | 2,953 | 3,330 | |||||
Trade payables | 11,2 | 5,897 | 11,252 | |||||
Liabilities from income taxes | 11,2 | 198 | 178 | |||||
Other liabilities | 11,2 | 14,559 | 19,474 | |||||
28,698 | 39,417 | |||||||
108,102 | 92,011 | |||||||
*Property, plant and equipment and lease liabilities as of
The accompanying notes form an integral part of these unaudited interim condensed consolidated financial statements.
Unaudited interim condensed consolidated statements of cash flows
for the three months ended
(in EUR k)
For the three months ended | ||||||||
Note | 2022 | 2021* | ||||||
Operating activities | ||||||||
Loss before taxes from continuing operations | (11,079 | ) | (14,129 | ) | ||||
Income before taxes from discontinued operations | 7 | 4,614 | 9,240 | |||||
Loss before taxes | (6,465 | ) | (4,889 | ) | ||||
Adjustments to reconcile loss to cash flow from operating activities | ||||||||
Amortization and depreciation | 5 | 3,808 | 3,286 | |||||
Interest expense | 859 | 259 | ||||||
Expected credit loss allowances on trade receivables and contract assets | 8 | 146 | 95 | |||||
Gain on disposal of property, plant and equipment | (527 | ) | — | |||||
Share‑based payment (true up)/ expenses | 12 | (1,957 | ) | 2,042 | ||||
Fair value adjustments of warrants | (238 | ) | — | |||||
Other non‑cash items | (141 | ) | (184 | ) | ||||
Changes in operating assets and liabilities | ||||||||
Inventories | 1,802 | 2,083 | ||||||
Trade receivables and contract assets | 8 | 3,066 | 500 | |||||
Other assets | 8 | 10 | (941 | ) | ||||
Trade payables | 11.2 | (5,355 | ) | (6,638 | ) | |||
Other liabilities | 11.2 | (4,908 | ) | 4,629 | ||||
Thereof cash flow used in continuing operating activities | (12,735 | ) | (8,720 | ) | ||||
Thereof cash flow from discontinued operating activities | 7 | 2,835 | 8,962 | |||||
Net cash flow (used in)/ from operating activities | (9,900 | ) | 242 | |||||
Investing activities | ||||||||
Cash paid for investments in intangible assets | 5 | (44 | ) | (1,326 | ) | |||
Cash paid for investments in property, plant and equipment | (79 | ) | (1,970 | ) | ||||
Cash received for disposal of property, plant and equipment | 575 | — | ||||||
Thereof cash flow from continuing investing activities | (123 | ) | (1,526 | ) | ||||
Thereof cash flow from discontinued investing activities | 7 | 575 | (1,770 | ) | ||||
Cash flow from/ (used in) investing activities | 452 | (3,296 | ) | |||||
Financing activities | ||||||||
Cash received from issuance of shares | 10 | 12,058 | — | |||||
Cash received from issuance of warrants | 2,833 | — | ||||||
Cash received from loans | 11.1 | 21,695 | 1,587 | |||||
Cash repayments of loans | 11.1 | (200 | ) | (185 | ) | |||
Cash repayments of lease liabilities | 11.1 | (1,231 | ) | (1,222 | ) | |||
Interest paid | (859 | ) | (61 | ) | ||||
Thereof net cash flow from continuing financing activities | 34,705 | 394 | ||||||
Thereof net cash flow used in discontinued financing activities | (409 | ) | (275 | ) | ||||
Net cash flow from financing activities | 34,296 | 119 | ||||||
Changes in cash and cash equivalents | 24,848 | (2,935 | ) | |||||
Cash and cash equivalents at the beginning of the period | 17,818 | 48,156 | ||||||
Cash and cash equivalents at the end of the period | 42,666 | 45,221 | ||||||
*The comparative numbers have been re-presented as a result of the discontinued operations. Refer to Note 7- Discontinued Operations.
The accompanying notes form an integral part of these unaudited interim condensed consolidated financial statements.
Reconciliation of segment Adjusted EBITDA to Group loss before taxes from continuing operations
For the three months ended | 2022 | 2021 | ||||
Reported segment Adjusted EBITDA | 1,911 | 2,551 | ||||
Corporate expenses | (11,964 | ) | (12,020 | ) | ||
(10,053 | ) | (9,469 | ) | |||
Share-based payment (true-up)/ expenses (Note 12) | 1,957 | (2,042 | ) | |||
Depreciation and amortization | (2,363 | ) | (2,359 | ) | ||
Operating loss from continuing operations | (10,459 | ) | (13,870 | ) | ||
Financial costs, net | (620 | ) | (259 | ) | ||
Loss before taxes from continuing operations for the three months ended | (11,079 | ) | (14,129 | ) | ||
Media Contact:
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Corporate Communications
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