Original from: Genomeweb
Biocartis on Thursday reported a 21 percent year-over-year increase in revenues for the first half of 2022 as higher collaboration revenue offset a decline in SARS-CoV-2 product sales.
The Belgian molecular diagnostics firm also said that it had entered into a number of recapitalization transactions that are expected to provide it with roughly �66 million ($65.9 million) in new capital.
For the six-month period ended June 30, Biocartis posted revenues of �26.4 million versus �21.9 million in the same period last year. Collaboration revenue, derived almost entirely from R&D services to partners, nearly doubled to �5.1 million from �2.6 million. While revenues from SARS-CoV-2 products fell to �1.7 million during H1 2022, revenues from the firm's Idylla oncology test cartridges climbed 35 percent year on year to �14.4 million and revenues from sales of Idylla instruments edged up 4 percent to �3.8 million.
Biocartis posted a net loss of �28.8 million for the first half of the year, down from a loss of �37.3 million in H1 2021.
Its R&D costs in the first half of the year declined 18 percent to �19.3 million from �23.4 million, while SG&A expenses rose 17 percent to �18.4 million from �15.7 million.
At the end of June, Biocartis had cash and cash equivalents totaling �19.7 million.
In an effort to bolster its financial position, Biocartis said that it is deleveraging via a partial equitization of 4 percent convertible bonds due in 2024 equal to 10 percent of notional amounts outstanding and maturity extension by three and a half years to November 2027.
The firm is also allowing holders of existing convertible bonds to exchange them into new second lien secured convertible bonds and to participate in a fully covered rights issue of �25 million. Certain existing holders of the new convertible notes will provide a new senior secured term loan that will provide Biocartis with approximately �16 million of additional cash liquidity, the company added.
"These financing arrangements … provide us with an opportunity to strengthen our cash position by approximately �66 million and fundamentally improve our financial structure by pushing out the maturity date on our convertible debt," Biocartis CEO Herman Verrelst said in a statement. "Subject to the successful completion, and upon approval by our bondholders and shareholders, these agreements will provide the resources necessary to continue and execute our growth strategy towards profitability."
China Association of In-vitro Diagnostics
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