Last close As at 05/08/2026
USD5.00
▲ −1.80 (−26.47%)
Market capitalisation
USD62m
Research: Healthcare
OpGen provided a business update including preliminary top-line Q222 results. Quarterly revenues of $1.0m increased 23.2% y-o-y from $0.8m in Q121 and 113% from the previous quarter. Management highlighted several key developments, including the first commercial contract for the Acuitas AMR Gene Panel, extension of the existing distribution agreement with European distribution partner Menarini, a new distribution agreement with Leader Life Sciences for UAE and Qatar, and an at-the-market (ATM) sales facility to raise up to $10.7m in funds. We estimate the $16.6m gross cash at end Q222 to be sufficient to repay outstanding debt and fund operations into Q123. We also anticipate the full utilisation of the ATM facility to extend the runway into Q323. We maintain our estimates and valuation.
Written by
OpGen |
A catalyst-rich Q222 |
Q222 trading update |
Pharma & biotech |
11 July 2022 |
Share price performance
Business description
Analysts
OpGen is a research client of Edison Investment Research Limited |
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OpGen provided a business update including preliminary top-line Q222 results. Quarterly revenues of $1.0m increased 23.2% y-o-y from $0.8m in Q121 and 113% from the previous quarter. Management highlighted several key developments, including the first commercial contract for the Acuitas AMR Gene Panel, extension of the existing distribution agreement with European distribution partner Menarini, a new distribution agreement with Leader Life Sciences for UAE and Qatar, and an at-the-market (ATM) sales facility to raise up to $10.7m in funds. We estimate the $16.6m gross cash at end Q222 to be sufficient to repay outstanding debt and fund operations into Q123. We also anticipate the full utilisation of the ATM facility to extend the runway into Q323. We maintain our estimates and valuation.
Year end |
Revenue ($m) |
PBT* ($m) |
EPS* |
DPS |
P/E |
Yield |
12/20 |
4.2 |
(24.7) |
(1.57) |
0.0 |
N/A |
N/A |
12/21 |
4.3 |
(35.7) |
(1.17) |
0.0 |
N/A |
N/A |
12/22e |
5.0 |
(22.8) |
(0.49) |
0.0 |
N/A |
N/A |
12/23e |
8.1 |
(19.0) |
(0.41) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The limited Q222 business update highlighted several key developments and bodes well for OpGen's quarterly results and longer-term commercial potential.
In May, OpGen amended its distribution agreement with Menarini, resulting in a 50% growth in minimum purchase commitments for the next 12 months (an 80% increase over the next two years, a CAGR of 34%). In addition, Menarini agreed to purchase all Unyvero systems installed across nine European countries at residual fair value, estimated to add c $400k in incremental revenue in 2022.
In June, OpGen signed its first commercial deal for Acuitas AMR Gene Panel with a major US hospital, a key inflection event. Acuitas received FDA approval in October 2021 and is targeting over 400 institutions and 1,000 key stakeholders.
OpGen also expanded its presence further in the Middle East by signing a distribution agreement with Leader Life Sciences for UAE and Qatar (see our previous note). OpGen’s subsidiary Ares Genetics launched two new sequencing and analysis services, ARESid and ARESiss Express, in April, diversifying the company’s product portfolio and creating other potential revenue streams.
In terms of clinical development, OpGen enrolled the 1,000th patient (out of a target 1,500) for its Unyvero Urinary Tract Infection (UTI) panel trial following positive interim results in April 2022. The clinical trial is on track to readout in H222.
Q222 revenues were slightly ahead of consensus estimates ($0.95m) and continued traction with Unyvero and Acuitas should support the company in achieving its FY22 revenue guidance (25–50% growth in product sales). We estimate the Q222 gross cash of $16.6m to provide an operating cash runway to Q123 based on a quarterly burn rate of c $5m. The announced ATM facility creates an additional buffer for the company with potential to extend the runway into Q323.
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Research: Investment Companies
Heliad Equity Partners (HEP) seeks to offer investors exposure to early-stage, private tech companies, with a particular focus on growth investments, through a listed evergreen structure. It has actively expanded its private portfolio since the change of its investment strategy in mid-2021 and held stakes in 16 unlisted and four listed companies at end-March 2022 offering solutions across sectors such as fintech, green energy, direct-to-customer (D2C), supply chain management, crypto/blockchain and mobility.