On May 11, 2022 Biodesix, Inc. (Nasdaq: BDSX), a leading data-driven diagnostic solutions company with a focus in lung disease, reported its financial and operating results for first quarter ended March 31, 2022 and provided a corporate update (Press release, Biodesix, MAY 11, 2022, View Source [SID1234614221]).
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"We are pleased by the progress we continue to make with our core lung diagnostic sales revenue, which grew 17% over the first quarter 2021 despite significant disruption from the COVID-19 Omicron variant during the first half of the quarter," said Scott Hutton, CEO of Biodesix. "We recovered quickly from the Omicron wave, and March was an all-time high in core lung diagnostic test results delivered. We also added to our therapeutic guidance portfolio with a full commercial launch of the 72-hour blood based GeneStrat NGS test, introducing flexibility in addressing individual patient and physician needs when considering the most appropriate treatment options for cancer. In addition, we successfully executed several strategic fundraising efforts to further support our growth and recovery resulting in an additional $27.4 million in debt and equity funding subsequent to quarter end, including a restructuring of our milestone payments to Integrated Diagnostics to provide further financial flexibility."
First Quarter 2022 Financial Results
For the three-month period ended March 31, 2022, as compared to the same period of 2021 (where applicable):
Total revenue of $6.5 million, an expected decrease of 77%, driven primarily by an expected year-over-year decline in COVID-19 diagnostic testing due to lower rate of testing compared to the first quarter of 2021:
Core lung diagnostic revenue of $4.6 million, an increase of 17% driven primarily by growth in the Nodify lung nodule management tests;
COVID-19 testing revenue of $1.0 million, a decrease of 96% in line with expectations as the pandemic recedes and COVID testing trends continue to move to at-home testing;
BioPharma Services revenue of $0.9 million, a decrease of 45% driven by disruptions in clinical trials world-wide by the spike in the Omicron COVID-19 variant;
First quarter 2022 gross margin of $3.3 million, or 51% as a percentage of revenue as compared to 37% in the comparable prior year period primarily driven by the mix shift of sales to higher-margin core lung diagnostics and away from lower-margin COVID-19 testing partially offset by costs related to the commercial launch of our GeneStrat NGS test in January;
Operating expenses (excluding direct costs and expenses) of $17.8 million, an increase of 10% driven primarily by growth in sales and marketing to fund our growth in sales and recent GeneStrat NGS commercial launch;
Includes non-cash stock compensation expense of $1.3 million as compared to $1.8 million in the prior year quarter;
Net loss of $15.6 million, an increase of 124%;
Cash and cash equivalents of $16.4 million as of March 31;
Included payment of $4.625 million for scheduled milestone payment in January 2022 to Integrated Diagnostics (Indi);
Liquidity and capital improvements subsequent to March 31, 2022:
Equity proceeds of $11.7 million from a private placement;
Equity proceeds of approximately $2.7 million through the at-the-market facility;
Completion of $25.0 million debt facility of which $15.0 million (approximately $13.0 million, net, after deducting estimated debt issuance costs and original issue discounts) funded in May 2022 and remaining amount contingently available based on contract terms;
Repayment of $3.0 million in outstanding principal balance on Term Loan;
Restructuring of Indi milestone payments reducing required payments by approximately $7.5 million and $7.2 million in 2022 and 2023, respectively.
2022 Financial Outlook
The Company reaffirms our 2022 financial outlook and expects to generate between $37.5 million and $39.5 million in total revenue in 2022.
Conference call and webcast information
Management will host an investor conference call and webcast today, May 11, 2022 at 8:00 a.m. Eastern Time.