CAMBRIDGE, Mass. and ROSTOCK, Germany and BERLIN, Sept. 07, 2023 (GLOBE NEWSWIRE) -- Centogene N.V. (Nasdaq: CNTG), the essential life science partner for data-driven answers in rare and neurodegenerative diseases, today announced its unaudited financial results for the six months ended June 30, 2023. The half year results are compared to the same periods in the prior year, unless otherwise specified, and reflect revisions as described below.
“CENTOGENE’s transformation as the essential partner for rare and neurodegenerative diseases is well underway. We are continuing to deliver against our goals in our core Diagnostics and Pharma segments,” stated Kim Stratton, Chief Executive Officer at CENTOGENE. “In Diagnostics, we have again showed double-digit growth in the first half of 2023 compared to the first half of 2022, with strong execution on our differentiated products, such as NEW CentoGenome®, CentoXome®, and MOx, our multiomic portfolio. This also validates our approach to invest in focus regions, with strong growth in Europe and Latin America. The first half of the year also showed a significant increase of 20% in our Pharma segment, confirming our growth trajectory. We have now fully resourced the Pharma commercial team and will continue to build our pipeline for 2023 and 2024. We are pleased to reaffirm our guidance for full year 2023 revenue growth between 10% to 15%.”
First Half 2023 - Financial Highlights
Kim Stratton added, “We reached a significant milestone by signing the strategic partnership with Lifera, a biopharmaceutical company wholly-owned by the Public Investment Fund (“PIF”) of Saudi Arabia, in June 2023. Lifera’s investment secures CENTOGENE a committed strategic partner for the future, and the overall partnership forms a pathway to achieving sustainable growth and profitability for CENTOGENE. This partnership is a testament to CENTOGENE’s extensive know-how and leading position in rare diseases.”
Commenting on the financial performance, Miguel Coego, Chief Financial Officer at CENTOGENE noted, “In the first half of 2023, we have continued to reduce our general and administrative expenses (“G&A”) by 18% (excluding Share Base Payments) and research and development expenses (“R&D”) by 24.5%. The positive impact has been somewhat offset by one-off expenses, such as restructuring costs, which will reduce our overall cost base going forward. We have prioritized resourcing our key revenue drivers. We will continue to prioritize growth, margins, and cost diligence and drive sustainable financial performance.”
Recent Business Highlights
Corporate
Pharma
Diagnostics
First Half 2023 Financial Summary
Our total revenues for the first half of 2023 were €24,624 thousand, representing an increase of €3,235 thousand, or 15.1%, as compared to €21,405 thousand for the first half of 2022.
Revenues from our Pharmaceutical segment were €8,286 thousand for the first half of 2023, representing an increase of €1,398 thousand, or 20.3%, from €6,888 thousand for the first half of 2022. Our partnership agreements are structured on a fee-per-sample basis, milestone basis, fixed fee basis, or a combination thereof. The increase was primarily due to increased activity in the clinical development and market access and expansion of our pharmaceutical partners.
During the first half of 2023, we entered into nine new collaborations and successfully completed twelve collaborations resulting in a total of 38 active collaborations at June 30, 2023, compared to 41 active collaborations at December 31, 2022 and 45 active collaborations as of June 30, 2022. Revenues from our new collaborations amounted to €1,750 thousand, for the first half of 2023.
Revenues from our Diagnostics segment were €16,338 thousand for the first half of 2023, an increase of €1,837 thousand, or 12.7%, from €14,501 thousand for the first half of 2022 due to a 22.2% increase in test requests received comparing to the first half year of 2022.
Total revenues from WES and WGS for the first half of 2023 amounted to €9,185 thousand, representing an increase of 17.0% as compared to €7,853 thousand for the first half of 2022. The total number of WES and WGS test requests received in the Diagnostics segment for the first half of 2023 was approximately 14,704, representing an increase of 30.5% as compared to approximately 11,226 test requests received for the first half of 2022.
Cost of sales increased by €2,692 thousand, or 20.7%, to €15,728 thousand for the first half of 2023, from €13,036 thousand for the first half of 2022. Cost of sales for the first half of 2023 represented 63.9%, of total revenue, representing an increase of 2.9% percentage points, respectively, as compared to 60.9%, first half of 2022. The overall increase for the first half of 2023 was mainly driven by an increase of €1,819 thousand on consumable expenses for lab materials.
As a result of the above factors, our gross profit for the first half of 2023, increased by €543 thousand, or 6.5%, to €8,896 thousand from €8,353 thousand for the first half of 2022.
Research and development expenses decreased by €2,220 thousand, or 24.5%, to €6,851 thousand for the first half of 2023, from €9,071 thousand for the first half of 2022. The decrease is mainly driven by realization of organizational efficiencies and savings in external expenses for data storage & processing.
General administrative expenses decreased by €112 thousand, or 0.6%, to €17,172 thousand for the first half of 2023, from €17,284 thousand for the first half of 2022. The decrease is principally due to the reduction in personnel costs due to cost savings driven by the restructuring and organizational efficiencies that was initiated in the last quarter of 2021.
However, excluding the Share Based Payments fully allocated to G&A, the underlying G&A reduction is 18% or €3,418 thousand compared to the first half of 2022.
Selling expenses for the first half of 2023 were €6,699 thousand, representing an increase of €1,507 thousand, or 29.0%, as compared to €5,192 thousand for the first half of 2022. The increase for the first half of 2023 was principally due to the reinforcement of the commercial organization as well as increases in sales commission for external distribution partners.
Impairment expenses for the first half of 2023 increased by €496 thousand, to €496 thousand as compared to nil incurred for the first half of 2022, while a gain on reversal of financial asset impairment was recorded for the first half of 2022 of €937 thousand, mainly driven by the MENA region.
Other operating income decreased by €65 thousand, or 4.7%, to €1,325 thousand for the first half of 2023, from €1,390 thousand for the first half of 2022, principally due to a lower grant income released during the period.
Other operating expenses which relate to currency losses decreased by €251 thousand, to €256 thousand in the first half of 2023, compared to €507 thousand for the first half of 2022.
The change in net financial costs by €1,693 thousand, for the first half of 2023 is mainly due to the increased interest expense and unrealized foreign exchange impact of the Oxford Loan Facility, and the change in the valuation of warrants between both periods.
As a result of the factors described above, our loss before taxes from continuing operations for the first half of 2023 was €24,443 thousand representing a decrease of €1,554 thousand, from a loss before taxes from continuing operations of €22,889 thousand for the first half of 2022.
Adjusted EBITDA from our Pharmaceutical segment for the first half of 2023 was €1,565 thousand representing a decrease of €1,006 thousand, as compared to €2,571 thousand for the first half of 2022. The decrease was primarily attributable to the reinforcement of the commercial department under the Pharmaceutical segment.
Adjusted EBITDA from our Diagnostics segment for the first half of 2023 was 1,306 thousand, representing a decrease of €1,413 thousand, as compared to €2,719 thousand for the first half of 2022. The decrease is mainly due to the increase in consumable expenses on approximately €1,601 thousand for the first half of 2023.
2023 Financial Guidance
The Company reaffirms its guidance for 2023 annual revenue growth between 10-15% versus fiscal year 2022 revenues as revised.
To view the full SEC filing, visit: https://investors.centogene.com/financials-and-filings/sec-filings
About CENTOGENE
CENTOGENE’s mission is to provide data-driven, life-changing answers to patients, physicians, and pharma companies for rare and neurodegenerative diseases. We integrate multiomic technologies with the CENTOGENE Biodatabank – providing dimensional analysis to guide the next generation of precision medicine. Our unique approach enables rapid and reliable diagnosis for patients, supports a more precise physician understanding of disease states, and accelerates and de-risks targeted pharma drug discovery, development, and commercialization.
Since our founding in 2006, CENTOGENE has been offering rapid and reliable diagnosis – building a network of approximately 30,000 active physicians. Our ISO, CAP, and CLIA certified multiomic reference laboratories in Germany utilize Phenomic, Genomic, Transcriptomic, Epigenomic, Proteomic, and Metabolomic datasets. This data is captured in our CENTOGENE Biodatabank, with over 800,000 patients represented from over 120 highly diverse countries, over 70% of whom are of non-European descent. To date, the CENTOGENE Biodatabank has contributed to generating novel insights for more than 285 peer-reviewed publications.
By translating our data and expertise into tangible insights, we have supported over 50 collaborations with pharma partners. Together, we accelerate and de-risk drug discovery, development, and commercialization in target & drug screening, clinical development, market access and expansion, as well as offering CENTOGENE Biodatabank Licenses and Insight Reports to enable a world healed of all rare and neurodegenerative diseases.
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 U.S. federal securities laws. Statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project,” “plan,” “is designed to,” “potential,” “predict,” “objective” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” and “may,” or the negative of these are generally intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause CENTOGENE’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward- looking statements. Such risks and uncertainties include, among others, negative economic and geopolitical conditions and instability and volatility in the worldwide financial markets, possible changes in current and proposed legislation, regulations and governmental policies, pressures from increasing competition and consolidation in our industry, the expense and uncertainty of regulatory approval, including from the U.S. Food and Drug Administration, our reliance on third parties and collaboration partners, including our ability to manage growth, execute our business strategy and enter into new client relationships, our dependency on the rare disease industry, our ability to manage international expansion, our reliance on key personnel, our reliance on intellectual property protection, fluctuations of our operating results due to the effect of exchange rates, our ability to streamline cash usage, our continued ongoing compliance with covenants linked to financial instruments, our requirement for additional financing, and our ability to continue as a going concern, or other factors. For further information on the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to CENTOGENE’s business in general, see CENTOGENE’s risk factors set forth in CENTOGENE’s Form 20-F filed on May 16, 2023, with the Securities and Exchange Commission (the “SEC”) and subsequent filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and CENTOGENE specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT
CENTOGENE
Melissa Hall
Corporate Communications
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Lennart Streibel
Investor Relations
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Centogene N.V.
Unaudited consolidated statements of comprehensive loss
(in EUR k)
| For the six months ended June 30 | ||||||||
| 2023 | 2022 | |||||||
| Revenue | 24,624 | 21,389 | ||||||
| Cost of sales | 15,728 | 13,036 | ||||||
| Gross profit | 8,896 | 8,353 | ||||||
| Research and development expenses | 6,851 | 9,071 | ||||||
| General administrative expenses | 17,172 | 17,284 | ||||||
| Selling expenses | 6,699 | 5,192 | ||||||
| Impairment of financial assets | 496 | — | ||||||
| Gain on reversal of financial asset impairment | — | 919 | ||||||
| Other operating income | 1,325 | 1,390 | ||||||
| Other operating expenses | 256 | 507 | ||||||
| Operating loss | (21,253 | ) | (21,392 | ) | ||||
| Changes in fair value of warrants | (442 | ) | 1,639 | |||||
| Interest and similar income | 849 | 1 | ||||||
| Interest and similar expense | 3,597 | 3,137 | ||||||
| Financial costs, net | (3,190 | ) | (1,497 | ) | ||||
| Loss before taxes from continuing operations | (24,443 | ) | (22,889 | ) | ||||
| Income tax expenses | 13 | 179 | ||||||
| Loss for the period from continuing operations | (24,456 | ) | (23,068 | ) | ||||
| Net income from discontinued operations, net of tax | — | 6,140 | ||||||
| Loss for the period | (24,456 | ) | (16,928 | ) | ||||
| Other comprehensive income/(loss), all attributable to equity holders of the parent | (148 | ) | 23 | |||||
| Total comprehensive loss | (24,604 | ) | (16,905 | ) | ||||
| Attributable to: | ||||||||
| Equity holders of the parent | (24,604 | ) | (16,658 | ) | ||||
| Non‑controlling interests from continuing operations | — | — | ||||||
| Non‑controlling interests from discontinued operations | — | (247 | ) | |||||
| (24,604 | ) | (16,905 | ) | |||||
| Net loss per share - Basic and diluted from (in EUR) | ||||||||
| Continuing operations | (0.88 | ) | (0.88 | ) | ||||
| Loss attributable to parent | (0.88 | ) | (0.64 | ) | ||||
Centogene N.V.
Unaudited consolidated statements of financial position
(in EUR k)
| Assets | June 30, 2023 | Dec 31, 2022 | |||||
| Non‑current assets | |||||||
| Intangible assets | 8,180 | 7,400 | |||||
| Property, plant and equipment | 6,244 | 6,808 | |||||
| Right-of-use assets | 15,370 | 15,351 | |||||
| Derivatives assets | 276 | 510 | |||||
| Other assets | 2,911 | 2,911 | |||||
| 32,981 | 32,980 | ||||||
| Current assets | |||||||
| Inventories | 2,129 | 1,819 | |||||
| Trade receivables and contract assets | 17,919 | 16,548 | |||||
| Other assets | 4,710 | 5,514 | |||||
| Cash and cash equivalents | 14,153 | 35,951 | |||||
| 38,911 | 59,832 | ||||||
| 71,892 | 92,812 |
| Equity and liabilities | June 30, 2023 | Dec 31, 2022 | ||||||
| Equity | ||||||||
| Issued capital | 3,412 | 3,307 | ||||||
| Capital reserve | 146,184 | 145,369 | ||||||
| Accumulated deficit and other reserves | (164,818 | ) | (141,265 | ) | ||||
| (15,222 | ) | 7,411 | ||||||
| Non‑current liabilities | ||||||||
| Non‑current loans | 39,634 | 40,051 | ||||||
| Lease liabilities | 13,459 | 13,125 | ||||||
| Deferred tax liabilities | 25 | 35 | ||||||
| Government grants | 6,099 | 6,687 | ||||||
| Derivatives liabilities | 205 | 376 | ||||||
| Warrant liability | 689 | 260 | ||||||
| Other liabilities | 101 | 202 | ||||||
| 60,212 | 60,736 | |||||||
| Current liabilities | ||||||||
| Government grants | 1,173 | 1,263 | ||||||
| Current loans | 4,501 | 4,635 | ||||||
| Lease liabilities | 2,311 | 2,311 | ||||||
| Liabilities from income taxes | 88 | 89 | ||||||
| Trade payables | 6,951 | 6,317 | ||||||
| Other liabilities | 11,878 | 10,050 | ||||||
| 26,902 | 24,665 | |||||||
| 71,892 | 92,812 | |||||||
Centogene N.V.
Unaudited consolidated statements of cash flows
(in EUR k)
| For the six months ended June 30 | ||||||||
| 2023 | 2022 | |||||||
| Operating activities | ||||||||
| Loss before taxes from continuing operations | (24,443 | ) | (22,889 | ) | ||||
| Income before taxes from discontinued operations | — | 6,153 | ||||||
| Loss before taxes | (24,443 | ) | (16,736 | ) | ||||
| Adjustments to reconcile loss to cash flow from operating activities | ||||||||
| Amortization and depreciation | 3,801 | 5,958 | ||||||
| Interest income | (849 | ) | (1 | ) | ||||
| Interest expense | 3,575 | 3,137 | ||||||
| Expected credit loss allowances on trade receivables and contract assets | 496 | — | ||||||
| Gain on revaluation of credit loss allowance on trade receivables and contract assets | — | (919 | ) | |||||
| Gain on disposal of property, plant and equipment | (24 | ) | (683 | ) | ||||
| Share‑based payment (true up)/ expenses | 1,920 | (1,386 | ) | |||||
| Fair value adjustments of warrants | 442 | (1,639 | ) | |||||
| Tax expense | — | 192 | ||||||
| Other non‑cash items | (392 | ) | (580 | ) | ||||
| Changes in operating assets and liabilities | ||||||||
| Inventories | (310 | ) | 1,715 | |||||
| Trade receivables and contract assets | (1,867 | ) | 8,849 | |||||
| Other assets | 804 | 1,499 | ||||||
| Trade payables | 634 | (6,495 | ) | |||||
| Other liabilities | 1,726 | (8,060 | ) | |||||
| Thereof cash flow (used in) continuing operating activities | (14,487 | ) | (22,504 | ) | ||||
| Thereof cash flow from discontinued operating activities | — | 7,355 | ||||||
| Net cash flow (used in) operating activities | (14,487 | ) | (15,149 | ) | ||||
| Investing activities | ||||||||
| Cash paid for investments in intangible assets | (2,143 | ) | (151 | ) | ||||
| Cash paid for investments in property, plant and equipment | (25 | ) | (843 | ) | ||||
| Cash received for disposal of property, plant and equipment | 24 | 779 | ||||||
| Thereof cash flow (used in) continuing investing activities | (2,144 | ) | (994 | ) | ||||
| Thereof cash flow from discontinued investing activities | - | 779 | ||||||
| Cash flow (used in) investing activities | (2,144 | ) | (215 | ) | ||||
| Financing activities | ||||||||
| Cash received from issuance of shares | — | 12,058 | ||||||
| Cash received from issuance of warrants | — | 2,833 | ||||||
| Cash received from loans | 3,604 | 21,695 | ||||||
| Cash repayments of loans | (3,906 | ) | (148 | ) | ||||
| Cash repayments of lease liabilities | (1,319 | ) | (2,241 | ) | ||||
| Interest received | 7 | 1 | ||||||
| Interest paid | (3,575 | ) | (3,137 | ) | ||||
| Thereof net cash flow from/(used in) continuing financing activities | (5,189 | ) | 31,542 | |||||
| Thereof net cash flow (used in) discontinued financing activities | - | (481 | ) | |||||
| Net cash flow from/ (used in) financing activities | (5,189 | ) | 31,061 | |||||
| Changes in cash and cash equivalents | (21,820 | ) | 15,697 | |||||
| Cash and cash equivalents at the beginning of the period | 35,951 | 17,818 | ||||||
| Effect of movements in exchange rates on cash held | 22 | — | ||||||
| Cash and cash equivalents at the end of the period | 14,153 | 33,515 | ||||||
| Last Trade: | US$0.33 |
| Daily Volume: | 0 |
| Market Cap: | US$9.430M |
September 25, 2024 August 01, 2024 June 20, 2024 | |
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