Full Press Release Details
Reports Q1-2024 Results and Announces Growth Capital from OrbiMed
Q1 revenues increase by 35% to $19.8 million
2024 revenue guidance to $83-85 million, previously $79-81 million
call with Q&A today at 08:30 AM ET / 14:30 CET
CA, and HERSTAL, BELGIUM - May 1, 2024 (GlobeNewswire) - MDxHealth SA (NASDAQ:
MDXH) (the "Company" or "mdxhealth"), a commercial-stage precision diagnostics company, today announced its
financial results for the first quarter ended March 31, 2024 and the closing of a new debt facility with OrbiMed.
K. McGarrity, CEO of mdxhealth, commented: "We are pleased to report operating results that demonstrate successful execution
of our growth strategy and support our outlook for delivering sustainable growth in revenues, a consistent reduction in cash burn, and
adequate runway to achieve adjusted EBITDA profitability in the first half of 2025. Additionally, we have received the first clinical
samples from current customers for hereditary germline testing and now expect germline testing to begin contributing to revenue in the
second quarter. Based on this continued momentum in our execution and strong demand for our tests, we are increasing our 2024 revenue
guidance to $83-85 million from the previous $79-81 million.
are excited to partner with OrbiMed in a new debt facility, which provides significant growth capital and balance sheet flexibility,
and allows the Company to further support growing demand for our precision diagnostic tests. This investment also reflects the continued
progress we are making in attracting leading institutional investors who recognize our Company's unique positioning within our
high growth, urology markets."
review for the quarter ended March 31, 2024
| Quarter Ended March 31 | ||||||||||||
| USD in thousands (except per share data) Unaudited | 2024 | 2023 | % Change | |||||||||
| Revenue | 19,834 | 14,700 | 35 | % | ||||||||
| Cost of goods | (7,771 | ) | (5,985 | ) | 30 | % | ||||||
| Gross Profit | 12,063 | 8,715 | 38 | % | ||||||||
| Operating expenses | (18,667 | ) | (17,432 | ) | 7 | % | ||||||
| Operating loss | (6,604 | ) | (8,717 | ) | (24 | )% | ||||||
| Net loss | (8,511 | ) | (11,709 | ) | (27 | )% | ||||||
| Basic and diluted loss per share | (0.31 | ) | (0.53 | ) | (42 | )% |
increased 35% to $19.8 million compared to $14.7 million for the prior year.
margins were 60.8% compared to 59.3% for the prior year, an improvement of 1.5 percentage points.
expenses increased 7% to $18.7 million compared to $17.4 million for the prior year, driven primarily by scale and volume increases through
loss decreased 27% to $8.5 million compared to $11.7 million for the prior year, driven by our increases in revenues and gross profit.
and cash equivalents as of March 31, 2024, were $14.5 million.
Refinancing with OrbiMed
May 1, 2024, mdxhealth closed a $100 million loan and security agreement with funds managed by OrbiMed Advisors LLC ("OrbiMed").
The Company drew down $55 million from this loan, replacing its existing $35 million debt funded by an affiliate of Innovatus Capital
Partners, LLC. At the option of the Company, an additional $45 million can be drawn under the OrbiMed facility, consisting of a $25 million
delayed draw term loan and a $20 million delayed draw term loan, in 2025 and 2026 respectively, subject to certain conditions. The loans
are secured by substantially all assets of the Company, including intellectual property rights. Remaining proceeds of the loans will
be used for working capital purposes and to fund general business requirements.
K. McGarrity, Chief Executive Officer and Ron Kalfus, Chief Financial Officer, will host a conference call and Q&A session today
at 08:30 AM ET / 14:30 CET. The call will be conducted in English and a replay will be available for 30 days.
participate in the conference call, please select your phone number below:
States: 1-800-717-1738
Netherlands: +31 20 795 2682
United Kingdom: +44 800 279 7040
ensure a timely connection, it is recommended that users register at least 10 minutes prior to the scheduled start time.
is a commercial-stage precision diagnostics company that provides actionable molecular information to personalize patient diagnosis and
treatment. The Company's tests are based on proprietary genomic, epigenetic (methylation) and other molecular technologies and
assist physicians with the diagnosis and prognosis of urologic cancers and other urologic diseases. For more information, visit mdxhealth.com
press release contains forward-looking statements and estimates with respect to the anticipated future performance of MDxHealth and the
market in which it operates, all of which involve certain risks and uncertainties. These statements are often, but are not always, made
through the use of words or phrases such as "potential," "expect," "will," "goal," "next,"
"potential," "aim," "explore," "forward," "future," and "believes"
as well as similar expressions. Forward-looking statements contained in this release include, but are not limited to, statements regarding
expected future operating results; expectations for development of new or improved products and services and their impact on patients;
our strategies, positioning, resources, capabilities and expectations for future events or performance; and the anticipated benefits
of our acquisitions, including estimated synergies and other financial impacts. Such statements and estimates are based on assumptions
and assessments of known and unknown risks, uncertainties and other factors, which were deemed reasonable but may not prove to be correct.
Actual events are difficult to predict, may depend upon factors that are beyond the company's control, and may turn out to be materially
different. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results,
product development efforts, our strategies, positioning, resources, capabilities and expectations for future events or performance.
Important factors that could cause actual results, conditions and events to differ materially from those indicated in the forward-looking
statements include, among others, the following: uncertainties associated with global macroeconomic conditions; our ability to successfully
and profitably market our products; the acceptance and reimbursement of our products and services by healthcare providers and payers;
our ability to obtain and maintain regulatory approvals and comply with applicable regulations; the possibility that the anticipated
benefits from our business acquisitions like our acquisition of the Oncotype DX GPS prostate cancer business will not
be realized in full or at all or may take longer to realize than expected; and the amount and nature of competition for our products
and services. Other important risks and uncertainties are described in the Risk Factors sections of our most recent Annual Report on
Form 20-F and in our other reports filed with the Securities and Exchange Commission. MDxHealth expressly disclaims any obligation to
update any such forward-looking statements in this release to reflect any change in its expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement is based unless required by law or regulation. This press release
does not constitute an offer or invitation for the sale or purchase of securities or assets of MDxHealth in any jurisdiction. No securities
of MDxHealth may be offered or sold within the United States without registration under the U.S. Securities Act of 1933, as amended,
or in compliance with an exemption therefrom, and in accordance with any applicable U.S. securities laws.
Measures. The Company's reference to adjusted EBITDA is a forward-looking statement about the Company's future
financial performance, and is a non-IFRS measure that excludes a number of expense items that are included in net loss, including adjustments
for items like stock-based compensation, acquisition and integration costs, impairment of long-lived assets, fair-value adjustment, loan
extinguishment costs, as well as other non-operating, non-recurring expenses that are difficult to predict for future periods because
the nature of the adjustments pertain to events that have not yet occurred. As a result, positive adjusted EBITDA may be achieved while
a significant net loss persists. Non-IFRS financial information has limitations as an analytical tool and should not be considered in
isolation or as a substitute for financial information presented in accordance with IFRS, and such information is referenced for supplemental
information purposes only. Management does not forecast many of the excluded items for internal use, as these are difficult to predict
for future periods because the nature of the adjustments pertain to events that have not yet occurred. Information reconciling forward-looking
non-IFRS measures to IFRS measures is therefore not available without unreasonable effort, and is not provided. The occurrence, timing,
and amount of any of the items excluded from IFRS to calculate non-IFRS measures could significantly impact the Company's IFRS results.
The mdxhealth logo, mdxhealth, Confirm mdx, Select mdx, Resolve mdx, Genomic Prostate Score, GPS and Monitor mdx are trademarks
or registered trademarks of MDxHealth SA. The GPS test was formerly known as and is frequently referenced in guidelines, coverage policies,
reimbursement decisions, manuscripts and other literature as Oncotype DX Prostate, Oncotype DX GPS, Oncotype DX Genomic Prostate Score,
and Oncotype Dx Prostate Cancer Assay, among others. The Oncotype DX trademark, and all other trademarks and service marks, are the property
of their respective owners.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| Three Months Ended March 31, | ||||||||
| In thousands of $ (except per share amounts) | 2024 | 2023 | ||||||
| Revenues | $ | 19,834 | $ | 14,700 | ||||
| Cost of sales (exclusive of amortization of intangible assets) | (7,771 | ) | (5,985 | ) | ||||
| Gross profit | 12,063 | 8,715 | ||||||
| Research and development expenses | (2,164 | ) | (1,316 | ) | ||||
| Selling and marketing expenses | (10,028 | ) | (9,099 | ) | ||||
| General and administrative expenses | (5,359 | ) | (5,169 | ) | ||||
| Amortization of intangible assets | (1,125 | ) | (1,124 | ) | ||||
| Other operating income (expense), net | 9 | (724 | ) | |||||
| Operating loss | (6,604 | ) | (8,717 | ) | ||||
| Financial expenses, net | (1,907 | ) | (2,992 | ) | ||||
| Loss before income tax | (8,511 | ) | (11,709 | ) | ||||
| Income tax | - | - | ||||||
| Loss for the period | $ | (8,511 | ) | $ | (11,709 | ) | ||
| Loss per share attributable to parent* | ||||||||
| Basic and diluted | $ | (0.31 | ) | $ | (0.53 | ) |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Thousands of $ | March 31, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Goodwill | $ | 35,926 | $ | 35,926 | ||||
| Intangible assets | 43,757 | 44,337 | ||||||
| Property, plant and equipment | 4,758 | 4,956 | ||||||
| Right-of-use assets | 4,625 | 4,989 | ||||||
| Financial assets | 693 | 763 | ||||||
| Total non-current assets | 89,759 | 90,971 | ||||||
| Current assets | ||||||||
| Inventories | 3,044 | 2,779 | ||||||
| Trade receivables | 12,669 | 11,088 | ||||||
| Prepaid expenses and other current assets | 1,779 | 1,914 | ||||||
| Cash and cash equivalents | 14,494 | 22,380 | ||||||
| Total current assets | 31,986 | 38,161 | ||||||
| TOTAL ASSETS | $ | 121,745 | $ | 129,132 | ||||
| EQUITY | ||||||||
| Share capital | $ | 173,931 | $ | 173,931 | ||||
| Issuance premium | 153,177 | 153,177 | ||||||
| Accumulated deficit | (339,957 | ) | (331,446 | ) | ||||
| Share-based compensation | 12,307 | 12,139 | ||||||
| Translation reserve | (431 | ) | (593 | ) | ||||
| Total equity | (973 | ) | 7,208 | |||||
| LIABILITIES | ||||||||
| Non-current liabilities | ||||||||
| Loans and borrowings | 35,775 | 35,564 | ||||||
| Lease liabilities | 3,115 | 3,578 | ||||||
| Other non-current financial liabilities | 64,878 | 63,259 | ||||||
| Total non-current liabilities | 103,768 | 102,401 | ||||||
| Current liabilities | ||||||||
| Loans and borrowings | 645 | 643 | ||||||
| Lease liabilities | 1,564 | 1,480 | ||||||
| Trade payables | 8,759 | 8,811 | ||||||
| Other current liabilities | 6,258 | 5,694 | ||||||
| Other current financial liabilities | 1,724 | 2,895 | ||||||
| Total current liabilities | 18,950 | 19,523 | ||||||
| Total liabilities | 122,718 | 121,924 | ||||||
| TOTAL EQUITY AND LIABILITIES | $ | 121,745 | $ | 129,132 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| Three Months Ended March 31, | ||||||||
| Thousands of $ | 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Operating loss | $ | (6,604 | ) | $ | (8,717 | ) | ||
| Depreciation | 775 | 512 | ||||||
| Amortization of intangible assets | 1,125 | 1,124 | ||||||
| Share-based compensation | 168 | 158 | ||||||
| Other non-cash transactions | (1 | ) | 815 | |||||
| Cash used in operations before working capital changes | (4,537 | ) | (6,108 | ) | ||||
| Increase (-) / decrease (+) in inventories | (265 | ) | 297 | |||||
| Increase (-) / decrease (+) in receivables | (1,392 | ) | 346 | |||||
| Increase (+) in payables | 679 | 1,197 | ||||||
| Net cash outflow from operating activities | (5,515 | ) | (4,268 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property, plant and equipment | (220 | ) | (787 | ) | ||||
| Acquisition and generation of intangible assets | (544 | ) | (455 | ) | ||||
| Interests received | 146 | 4 | ||||||
| Net cash outflow from investing activities | (618 | ) | (1,238 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from issuance of shares, net of transaction costs | - | 39,599 | ||||||
| Repayment of loan obligation | (160 | ) | (158 | ) | ||||
| Payment of lease liability | (475 | ) | (348 | ) | ||||
| Payment of interest | (947 | ) | (831 | ) | ||||
| Other financial expenses | (170 | ) | - | |||||
| Net cash (outflow) / inflow from financing activities | (1,752 | ) | 38,262 | |||||
| Net decrease (-) / increase (+) in cash and cash equivalents | (7,885 | ) | 32,756 | |||||
| Cash and cash equivalents at beginning of period | 22,380 | 15,503 | ||||||
| Effect on exchange rate changes | (1 | ) | (5 | ) | ||||
| Cash and cash equivalents at end of period | $ | 14,494 | $ | 48,254 |