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PRESS RELEASE REGULATED INFORMATION
1 September 2022, 07:02 CEST
BIOCARTIS ANNOUNCES H1 2022 RESULTS
Affirms 2022 Outlook
35% growth in oncology cartridge revenues
Gross Margin on Products of 32%
Refinancing underwayCompany will host a conference call with live webcast presentation today at 14:30 CEST / 13:30 BST (UK) / 08:30
EDT (US) to discuss H1 2022 results
Mechelen, Belgium, 1 September 2022 – Biocartis Group NV (the ‘Company’ or ‘Biocartis’), an innovative
molecular diagnostics company (Euronext Brussels: BCART), today announces its business highlights and financial
results for the first half of 2022, prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by
the European Union.
Commenting on the H1 2022 results and post-reporting period events, Herman Verrelst, Chief
Executive Officer of Biocartis, said:
“Our operational performance in H1 2022 marked a pivotal moment on our
journey towards profitability: continued strong growth of our core oncology business translated into significantly
higher gross margins. Cartridge revenue in our core oncology business grew by 35% year-on-year, and the gross
margin on products increased to 32%. Despite the expected decrease of Idylla™ SARS-CoV-2 product sales, we
almost quadrupled gross profit to EUR 6.6m during the first half of the year, fueled by increased average selling
prices of cartridges in oncology and economies of scale in our cartridge manufacturing. We are on track to deliver
on our objectives for the entire year, and also made important progress in securing future growth. We are
particularly proud of the extended partnership with AstraZeneca for the development of a companion diagnostic
for its blockbuster Tagrisso®. Furthermore, we were very pleased to announce that we entered into several
financing arrangements with the support of certain holders of our convertible bonds. These will, upon successful
completion, strengthen our cash position with approximately EUR 66m and fundamentally improve our financing
structure.”
KEY MESSAGES H1 2022
? Product revenue of EUR 20.3m (H1 2021: EUR 18.5m), of which EUR 16.5m from 153k cartridges sold and
EUR 3.8m from instrument rentals and sales:
? EUR 14.4m cartridge revenue in oncology (+35% year-on-year), double-digit growth across all regions,
led by the US, both in cartridge volumes as in Average Selling price (ASP)
? The contribution of COVID-19 testing to cartridge revenues decreased to EUR 1.7m as both volumes and
pricing continued to reduce. Revenues are evenly split between Europe and the US
? ASP per commercial cartridge of EUR 113 in oncology and EUR 103 overall
? EUR 3.8m revenue from a global Idylla™ installed base of 2,014 instruments, with 102 net new instruments
placed
• Gross profit on product sales increased by 370% from EUR 1.4m to EUR 6.6m, reflecting a gross margin
of 32%, compared to 8% for H1 2021 and 16% for the full year 2021
• Operating cash burn1 of EUR -19.2m, EUR 9.4m lower than in H1 2021; Company cash position of EUR
19.7m (unaudited figure) end of H1 2022. The available credit facilities of EUR 15.0m remained fully undrawn
as of 30 June 2022
• New partnership with AstraZeneca to develop a companion diagnostic2 (CDx) for use with Tagrisso®
(osimertinib), AstraZeneca’s third-generation EGFR-TKI (tyrosine kinase inhibitor) treatment
• Post the reporting period, start of Biocartis’ commercialization in Europe of SkylineDx’s Merlin Assay as
a CE-IVD marked kit, ahead of the launch of an Idylla™ version of the Assay
REFINANCING
Today the Company announced a comprehensive recapitalization transaction (the ‘Transactions’) that will provide
adequate capital to support the Company’s growth for the foreseeable future. The Transactions, which are
supported by key existing investors, is a significant milestone for the Company and will provide for the following:
• Deleveraging via a partial equitization of the 4.00% convertible bonds due 2024 (“Existing Convertible
Bonds”) equal to 10% of notional amounts outstanding, and maturity extension by 3.5 years to
1 EBITDA plus capital expenditure
2 A companion diagnostic (CDx) test is a test used as a companion to a therapeutic drug that helps predict if a patient is likely to respond to a treatment or not
2
November 2027.
• Allow holders of the Existing Convertible Bonds to exchange into new second lien secured convertible
bonds (“New Convertible Notes”), subject to their commitment to participate pro-rata in a fully
backstopped EUR 25 million investment into additional New Convertible Notes.
• Allow existing shareholders to participate in the growth of the Company by taking part in a fully
covered rights issue of EUR 25 million, which is backstopped in full by certain new investors and KBC
Securities (subject to a number of customary and transaction specific conditions).
• Certain existing holders of New Convertible Notes will provide a new senior secured term loan (“New
Convertible Term Loans”) that will provide the Company with approximately EUR 16 million of
additional cash liquidity.
More information can be found in the press release here.
2022 OUTLOOK
As a result of a fading demand for COVID-19 testing, the product revenues for 2022 are projected to be around
the lower end of the initial EUR 50-55m range, without any impact however on the previously stated expectations
for gross margin on product sales and operating cash burn, which are maintained at:
• Increase gross margins on product sales to 25% - 30%
• Reduce the operating cash burn (EBITDA plus capital expenditure) by EUR 9.5m-13.5m, to be between
EUR 43m - 47m for FY22