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SomaLogic Q1 Revenues Fall 11 Percent but Beat Wall Street Consensus

NEW YORK – SomaLogic said Thursday after market close that its first quarter revenues fell by 11 percent to $20.4 million from $23.0 million in the same period a year earlier. The total still beat the consensus Wall Street estimate of $18.0 million.

Assay services revenues were $18.4 million, down from $18.8 million a year ago, while product revenues rose to $1.2 million from $453,000 a year ago. Revenues from collaborations were flat at $763,000, and other revenues fell to just $11,000 from nearly $3.0 million in Q1 2022.

In a conference call to discuss the financial results, CFO Shaun Blakeman said that approximately 55 percent of revenues came from biopharmaceutical customers.

The Boulder, Colorado-based proteomics technology firm provided its first guidance for 2023, saying that it expects full-year revenues of $80 million to $84 million.

Interim CEO Adam Taich said that the firm's SomaScan 10,000 proteins assay is on track to launch in Q4. SomaLogic had previously been more vague about the timeline.

The firm's collaboration with Illumina to produce a kit for a next-generation sequencing-based readout of its proteomics assays is still on track for commercialization in 2024, Taich said.

Taich has been on the job only since March 28, when then-CEO Roy Smythe abruptly stepped down, the same day two other members of the board of directors resigned.

There apparently had been some internal disagreement before that move. In March, SomaLogic hinted that it was no longer seeking to spin off its diagnostics business, a plan announced earlier this year before the management change.

Taich, formerly executive VP of life sciences, did not address the diagnostics division in the Q1 call but referred to unspecified "inorganic opportunities" to transform SomaLogic into a profitable enterprise. He also emphasized the need to reduce expenses and create "sustainable revenue growth."

Meantime, the firm is continuing to expand its geographic footprint. SomaLogic said earlier this week that it has partnered with Biostar Technology to provide its 7,000-plex SomaScan assay to the Chinese market.

Taich said that the Biostar partnership in China builds on a deal announced earlier this year with Group 42 Healthcare to become the first authorized provider of its technology in the Middle East. The company also has inked deals with Molecular Genomics in Singapore and FonesLife in Japan to be certified providers of its technology in the Asia-Pacific region.

SomaLogic's net loss for the recently completed quarter grew to $34.2 million, or $.18 per share, from a net loss of $4.0 million, or $.02 per share, a year earlier. Wall Street analysts, on average, had expected a net loss of $.22 per share.

The firm's R&D expenses in Q1 ticked up by 2 percent to $14.1 million from $13.8 million the year before. SG&A expenses rose 11 percent to $34.2 million from $30.8 million.

As of March 31, SomaLogic had $438.5 million in cash and cash equivalents, and $62.1 million in investments.

In Friday morning trading on the Nasdaq, SomaLogic shares were up 6 percent to $3.19.