Last close As at 06/08/2026
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Market capitalisation
USD62m
Research: Healthcare
OpGen’s Q222 revenue growth re-accelerated with the post-pandemic normalization in demand. Revenues of $0.97m increased 19% y-o-y, largely driven by strength in its core offering, Unyvero. Management announced several notable wins that provide momentum to close the back half of the year strong, including the signing of two commercial Acuitas AMR Gene Panel contracts, extension of the Unyvero distribution agreement with Menarini in Europe, new distribution agreements in the Middle East and Kosovo, and the steady growth of subsidiary Ares Genetics. Incorporating the quarterly results, lower net cash balance and a higher share count (following the initial utilization of the $10.7m at-the-market sales facility) lowers our valuation to $1.7/share (vs $2.0/share previously).
Written by
OpGen |
Re-acceleration with momentum in the back half |
Q222 update |
Pharma and biotech |
12 August 2022 |
Share price performance
Business description
Next events
Analysts
OpGen is a research client of Edison Investment Research Limited |
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OpGen’s Q222 revenue growth re-accelerated with the post-pandemic normalization in demand. Revenues of $0.97m increased 19% y-o-y, largely driven by strength in its core offering, Unyvero. Management announced several notable wins that provide momentum to close the back half of the year strong, including the signing of two commercial Acuitas AMR Gene Panel contracts, extension of the Unyvero distribution agreement with Menarini in Europe, new distribution agreements in the Middle East and Kosovo, and the steady growth of subsidiary Ares Genetics. Incorporating the quarterly results, lower net cash balance and a higher share count (following the initial utilization of the $10.7m at-the-market sales facility) lowers our valuation to $1.7/share (vs $2.0/share previously).
Year end |
Revenue ($m) |
PBT* |
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 |
4.6 |
(24.0) |
(0.50) |
0.0 |
N/A |
N/A |
12/23e |
7.7 |
(21.4) |
(0.44) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Unyvero: A strong recovery on all fronts
Unyvero revenues re-accelerated in the quarter as international sales recovered from softness in the prior quarter with the announced close of new international agreements, including a ~$1m, three-year contract with Leader Life Sciences in the Middle East and a ~$360k contribution from an asset purchase (at residual value) by Menarini. The revised agreement with Menarini is agreed to grow ~50% with minimum purchase commitments for the next 12 months (~80% over two years) and is anticipated to provide momentum through the next few quarters. FDA approval for the company’s Unyvero urinary tract infection (UTI) panel test, when achieved (trial readout expected in H222), will likely add upside potential. Any further delays to the clinical trials in China, driven by the stricter COVID-19 related trial restrictions, could be a major damper.
Acuitas AMR Gene Panel: Gathering steam
The company signed its first two commercial Acuitas AMR Gene Panel contracts with two large hospitals (a 1,000-bed teaching hospital and a 400-bed paediatric hospital). Traction of reputable institutions should provide a tailwind to the company’s marketing efforts. Increased utilization would translate into increased demand for consumables/cartridges. Roughly ~500 tests could deliver ~$70k in revenue at an average price of ~$140/test. We are encouraged that management is maintaining an active dialogue with multiple other potential partners.
Valuation: $81m or $1.7 per share
We adjust our revenue and operating expenses estimates following guidance revisions by management as well as factoring in the current run-rate. This, along with a lower pro-forma net cash position ($2.7m) and higher share count (48.3 million), reduces our valuation to $81m, or $1.7/share, from $91m or $2.0/share.
Exhibit 1: Financial summary
$'000s |
2019 |
2020 |
2021 |
2022e |
2023e |
||
Year end 31 December |
GAAP |
GAAP |
GAAP |
GAAP |
GAAP |
||
PROFIT & LOSS |
|
|
|||||
Revenue |
|
|
3,499 |
4,214 |
4,306 |
4,623 |
7,713 |
Cost of Sales |
(1,632) |
(3,848) |
(2,848) |
(2,464) |
(4,349) |
||
Gross Profit |
1,867 |
366 |
1,458 |
2,159 |
3,364 |
||
Sales, General and Administrative Expenses |
(8,496) |
(12,367) |
(13,649) |
(14,033) |
(13,459) |
||
Research and Development Expense |
(5,121) |
(9,965) |
(10,911) |
(9,274) |
(8,429) |
||
EBITDA |
|
|
(10,829) |
(19,631) |
(20,388) |
(18,546) |
(16,308) |
Operating Profit (before amort. and excepts.) |
|
(11,750) |
(21,966) |
(23,102) |
(21,148) |
(18,524) |
|
Intangible Amortisation |
0 |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
0 |
||
Exceptionals |
(522) |
(752) |
(171) |
0 |
0 |
||
Operating Profit |
(12,272) |
(22,718) |
(23,273) |
(21,148) |
(18,524) |
||
Net Interest |
(178) |
(3,294) |
(4,754) |
(2,857) |
(2,892) |
||
Other |
2 |
(66) |
(6,735) |
0 |
0 |
||
Profit Before Tax (norm) |
|
|
(11,928) |
(24,742) |
(35,742) |
(24,006) |
(21,417) |
Profit Before Tax (reported) |
|
|
(12,447) |
(26,078) |
(34,762) |
(24,006) |
(21,417) |
Tax |
0 |
(132) |
(44) |
0 |
0 |
||
Deferred tax |
0 |
0 |
0 |
0 |
0 |
||
Profit After Tax (norm) |
(11,928) |
(24,875) |
(35,786) |
(24,006) |
(21,417) |
||
Profit After Tax (reported) |
(12,447) |
(26,211) |
(34,806) |
(24,006) |
(21,417) |
||
Average Number of Shares Outstanding (m) |
1.6 |
15.8 |
36.7 |
48.3 |
48.3 |
||
EPS - normalised (c) |
|
|
(737.70) |
(157.43) |
(117.12) |
(49.73) |
(44.36) |
EPS - Reported ($) |
|
|
(7.70) |
(1.66) |
(1.14) |
(0.50) |
(0.44) |
Dividend per share (c) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
BALANCE SHEET |
|||||||
Fixed Assets |
|
|
3,755 |
32,863 |
31,924 |
29,719 |
27,915 |
Intangible Assets |
1,418 |
24,606 |
21,983 |
20,956 |
20,001 |
||
Tangible Assets |
2,133 |
5,791 |
5,917 |
4,738 |
3,890 |
||
Other |
203 |
2,466 |
4,024 |
4,024 |
4,024 |
||
Current Assets |
|
|
6,667 |
16,888 |
39,743 |
8,370 |
3,033 |
Stocks |
473 |
1,486 |
1,239 |
1,013 |
1,787 |
||
Debtors |
568 |
653 |
1,172 |
887 |
1,479 |
||
Cash |
2,708 |
13,360 |
36,080 |
5,220 |
(1,484) |
||
Other |
2,918 |
1,388 |
1,250 |
1,250 |
1,250 |
||
Current Liabilities |
|
|
4,939 |
7,372 |
19,917 |
15,896 |
14,906 |
Creditors |
4,565 |
6,673 |
5,398 |
6,497 |
6,387 |
||
Short term borrowings |
374 |
699 |
14,519 |
9,399 |
8,519 |
||
Long Term Liabilities |
|
|
1,190 |
21,188 |
10,533 |
4,067 |
18,382 |
Long term borrowings |
329 |
19,379 |
7,176 |
996 |
15,696 |
||
Other long-term liabilities |
860 |
1,809 |
3,356 |
3,070 |
2,685 |
||
Net Assets |
|
|
4,293 |
21,191 |
41,217 |
18,126 |
(2,339) |
CASH FLOW |
|||||||
Operating Cash Flow |
|
|
(11,506) |
(23,397) |
(21,479) |
(19,166) |
(19,580) |
Net Interest |
0 |
0 |
0 |
0 |
0 |
||
Tax |
0 |
0 |
0 |
0 |
0 |
||
Capex |
(32) |
(130) |
(1,984) |
(397) |
(413) |
||
Acquisitions/disposals |
0 |
1,267 |
0 |
0 |
0 |
||
Equity Financing |
13,062 |
33,793 |
48,159 |
1 |
1 |
||
Dividends |
0 |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
(266) |
0 |
0 |
||
Net Cash Flow |
1,524 |
11,533 |
24,430 |
(19,562) |
(19,991) |
||
Opening net debt/(cash) |
|
|
(3,514) |
(2,005) |
6,717 |
(14,385) |
5,175 |
HP finance leases initiated |
0 |
0 |
0 |
0 |
0 |
||
Exchange rate movements |
(19) |
(2) |
(5) |
(13) |
(4) |
||
Other |
(3013) |
(20,254) |
(3,322) |
15 |
(529) |
||
Closing net debt/(cash) |
|
|
(2,005) |
6,717 |
(14,385) |
5,175 |
25,700 |
Source: OpGen, Edison Investment Research
|
|
Research: TMT
Mirriad’s interim results confirm the trading update published in July, which indicated the impact of the withdrawal from China, and we make no further changes to our forecasts. There is good progress in the North American market, with US revenues 72% of the group total in H122. It is success here that will determine future growth and moves toward profitability. We regard the contract signed with Magnite at the end of May as a key milestone towards establishing the group’s in-content proposition as a line item in mainstream advertising budgets. Successful execution is key to driving an improved valuation.