SomaLogic Reports First Half of 2021 Financial Results

SomaLogic Reports First Half of 2021 Financial Results




SomaLogic Reports First Half of 2021 Financial Results

NEW YORK and BOULDER, Colo., Sept. 08, 2021 (GLOBE NEWSWIRE) — SomaLogic, Inc., a leader in AI-data driven proteomics technology, today reported financial results for the six months ended June 30, 2021.

“Our strong first half performance reflects our team’s dedication and execution across key drivers of the business as well as the rapidly growing global interest in proteomics products and services,” said Roy Smythe, M.D., SomaLogic’s Chief Executive Officer. “We announced multiple developments in the first half of 2021 to enhance our positioning for the future, including customizable and targeted content protein panels from our industry-leading 7,000-plex assay, a collaboration agreement with Novo Nordisk to support drug development, and formal partnerships with several world-class clinical care and medical research centers. We have doubled our sales force since the beginning of the year and are targeting a substantial ramp into the second half of 2021. The future is bright for SomaLogic.”

First Half 2021 Financial Results

Revenue for the first half of 2021 was $38.6 million, an increase of $25.2 million or 188% compared to the first half of 2020. The increase in revenue was primarily driven by a return to fee-for-service offerings and an expanding commercial development team.

Total cost of revenue for the first half of 2021 was $14.2 million, an increase of $6.8 million, or 91% compared to the first half of 2020. Gross margin for the first half of 2021 increased to 63% compared to 44% in the first half of 2020. The increase in total cost of revenue relative to the corresponding prior year period was primarily driven by an increased manufacturing cost due to higher volumes, net of production efficiencies. The increase in gross margin was primarily driven by an increase in royalty revenue and higher pricing per sample as a result of the reintroduction of the fee-for-service model in 2020.

Operating expenses were $58.6 million for the first half of 2021, compared to $42.2 million in the corresponding prior year period, which represents an increase of 39%. The increase was driven by ongoing sales force expansion and marketing efforts, expanding research and development efforts, investments in processes, tools and infrastructure to support the growth of the business, attracting, hiring and retaining qualified personnel, and protecting and defending intellectual property.

Net loss was $22.8 million in the first half of 2021, or a loss of $0.31 per share, as compared to a loss of $36.6 million, or $0.50 per share, in the corresponding period of the prior year.

Cash, cash equivalents, and short-term investments were $158.2 million as of June 30, 2021.

SomaLogic, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(unaudited, dollars in thousands, except for share and per share amounts)

    Six Months Ended June 30,
    2021     2020  
Revenue:            
Assay services revenue   $ 30,809     $ 10,788  
Product revenue     655       689  
Collaboration revenue     1,525       957  
Other revenue     5,651       999  
Total revenue     38,640       13,433  
Operating expenses:            
Cost of assay services revenue     13,811       7,133  
Cost of product revenue     419       334  
Research and development     16,708       16,296  
Selling, general and administrative     27,642       18,418  
Total operating expenses     58,580       42,181  
Loss from operations     (19,940 )     (28,748 )
Other (expense) income:            
Interest income and other, net     71       125  
Interest expense     (1,322 )     (7,995 )
Loss on extinguishment of debt, net     (1,630 )      
Total other expense     (2,881 )     (7,870 )
Net loss     (22,821 )     (36,618 )
Other comprehensive income (loss):            
Net unrealized gain (loss) on available-for-sale securities     8       (20 )
Foreign currency translation gain (loss)     1       (4 )
Total other comprehensive income (loss)     9       (24 )
Comprehensive loss   $ (22,812 )   $ (36,642 )
Net loss per share, basic and diluted   $ (0.31 )   $ (0.50 )
Weighted-average shares used to compute net loss per share, basic and diluted     73,874,501       72,605,744  

SomaLogic, Inc.
Condensed Consolidated Balance Sheets
(unaudited, dollars in thousands, except for share and per share amounts)

    As of June 30,

2021

  As of December
31,

2020

     
Assets            
Current assets:            
Cash and cash equivalents   $ 47,138     $ 164,944  
Investments     111,041       39,954  
Accounts receivable, net     13,566       17,449  
Inventory     7,662       7,020  
Deferred costs of services     1,721       1,450  
Prepaid expenses and other current assets     1,728       1,158  
Total current assets     182,856       231,975  
Non-current inventory     4,888       6,024  
Property and equipment, net     4,400       3,913  
Other long-term assets     6,279       378  
Total assets   $ 198,423     $ 242,290  
Liabilities, redeemable convertible preferred stock and stockholders’ deficit            
Current liabilities:            
Accounts payable     8,831       7,064  
Accrued liabilities     5,604       6,310  
Deferred revenue     4,789       1,762  
Deferred rent     54       238  
Current portion of convertible debt     1,937        
Current portion of long-term debt           2,423  
Total current liabilities     21,215       17,797  
Convertible debt           1,926  
Long-term debt           32,326  
Deferred revenue, net of current portion     2,890       3,415  
Other long-term liabilities     459       909  
Total liabilities     24,564       56,373  
Commitments and contingencies (Note 8)            
Redeemable convertible preferred stock, $0.01 par value; 50,000,000 authorized at June 30, 2021 and December 31, 2020; 31,485,973 shares issued and outstanding at June 30, 2021 and December 31, 2020 (aggregate liquidation preference of $213,475 as of June 30, 2021 and December 31, 2020)     202,116       202,116  
Stockholders’ deficit:            
Class A common stock, $0.01 par value; 218,000,000 shares authorized at June 30, 2021 and December 31, 2020; no shares issued and outstanding at June 30, 2021 and December 31, 2020            
Class B common stock, $0.01 par value; 218,000,000 shares authorized at June 30, 2021 and December 31, 2020; 74,817,828 and 73,481,228 shares issued at June 30, 2021 and December 31, 2020, respectively; 74,686,484 and 73,368,008 shares outstanding at June 30, 2021 and December 31, 2020, respectively     748       735  
Treasury stock, at cost, 131,344 and 113,220 shares at June 30, 2021 and December 31, 2020, respectively     (408 )     (352 )
Additional paid-in capital     405,583       394,786  
Accumulated other comprehensive income (loss)     7       (2 )
Accumulated deficit     (434,187 )     (411,366 )
Total stockholders’ deficit     (28,257 )     (16,199 )
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit   $ 198,423     $ 242,290  

About SomaLogic

SomaLogic seeks to deliver precise, meaningful, and actionable health-management information that empowers individuals worldwide to continuously optimize their personal health and wellness throughout their lives. This essential information, to be provided through a global network of partners and users, is derived from SomaLogic’s personalized measurement of important changes in an individual’s proteins over time. For more information, visit www.somalogic.com and follow @somalogic on Twitter.

SomaSignal™ tests are developed and their performance characteristics determined by SomaLogic, Inc. SomaLogic is a Clinical Laboratory Improvement Amendments (CLIA) certified, and College of American Pathologists (CAP) accredited laboratory. 

The SomaScan Platform is for Research Use Only (RUO) and has not been cleared or approved by the US Food and Drug Administration for diagnostic or patient management purposes. SomaLogic’s proprietary SomaScan Platform was designed to be a universal platform that can be applied across research and discovery, translational research and biopharmaceutical development, and clinical applications. SomaLogic can run approximately 7,000 protein measurements on a single 55 microliter plasma or serum sample. The Company has run more than 450,000 samples to date.

Forward Looking Statements Disclaimer
This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors.  Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including factors which are beyond SomaLogic’s control. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s registration statement. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SomaLogic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. SomaLogic does not give any assurance that the company will achieve its expectations.

SomaLogic Contact       
Emilia Costales
720-798-5054
ecostales@somalogic.com

Investor Contact
Marissa Bych or Lynn Lewis
Gilmartin Group LLC
investors@somalogic.com