OpGen-image

OpGen

NASDAQ: OPGN

Market Cap$11m

Last Close $0.2

OpGen is focused on revolutionising the identification and treatment of bacterial infections. Following the merger with Curetis, it has technology to detect pathogens and predict resistance. Importantly, the AMR Gene Panel and Unyvero platforms have the ability to provide results in hours instead of days.

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Investment summary

OpGen’s Q322 revenues of $0.4m missed consensus estimates (following a strong Q222 performance), with management attributing the softness to longer than expected sales cycles for ARES and lower Unyvero A50 sales in international markets. Encouragingly though, the quarter was marked by business advancements – signing a second Acuitas AMR Gene Panel commercial contract, completing the UTI test panel patient enrollment in the US, launching ARES sequencing services in the US and announcing collaborations with FIND and BioVersys – which all present monetization opportunities to potentially support revenue uplift starting in FY23. The Q322 miss, however, has triggered a guidance downgrade, with FY22 revenue expected to be $2.5–3.0m (previously 25% y-o-y growth; c $4.5m in revenue). In light of these developments, we withdraw our estimates and valuation while we await further clarity on the installed base, revenue mix and margins.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 4.2 (19.6) (24.7) (157.43) N/A N/A
2021A 4.3 (20.4) (35.7) (117.12) N/A N/A
2022E N/A N/A N/A N/A N/A N/A
2023E N/A N/A N/A N/A N/A N/A
Industry outlook

It currently takes days to test a patient sample to find out if they have an infection, what they are infected with and to which drugs that infection might be susceptible. This can lead to a delay in treatment or the wrong treatment being prescribed. According to the Centers for Disease Control and Prevention, there are over two million cases of drug-resistant bacterial infections every year.

Last updated on 30/11/2022
Content on OpGen
OpGen – Guidance revision triggered by softer Q322
Healthcare | research Flash note | 14 November 2022
OpGen-image
OpGen – Broadening its commercial footprint in Q322
Healthcare | research Flash note | 28 October 2022
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OpGen – Rapid detection collaboration with BioVersys
Healthcare | research Flash note | 26 October 2022
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Share price graph
Balance sheet
Forecast net debt (US$m) 5.2
Forecast gearing ratio (%) 29
Price performance
%
1m
3m
12m
Actual 4.2 (57.5) (87.7)
Relative* (1.1) (58.8) (86.2)
52-week high/low US$1.5/US$0.2
*% relative to local index
Key management
Oliver Schacht CEO
Albert Weber CFO