NEW YORK — Biocartis on Thursday reported a 21 percent year-over-year increase in revenues for the first half of 2022 as higher collaboration revenue offset a decline in SARS-CoV-2 product sales.
The Belgian molecular diagnostics firm also said that it had entered into a number of recapitalization transactions that are expected to provide it with roughly €66 million ($65.9 million) in new capital.
For the six-month period ended June 30, Biocartis posted revenues of €26.4 million versus €21.9 million in the same period last year. Collaboration revenue, derived almost entirely from R&D services to partners, nearly doubled to €5.1 million from €2.6 million. While revenues from SARS-CoV-2 products fell to €1.7 million during H1 2022, revenues from the firm's Idylla oncology test cartridges climbed 35 percent year on year to €14.4 million and revenues from sales of Idylla instruments edged up 4 percent to €3.8 million.
Biocartis posted a net loss of €28.8 million for the first half of the year, down from a loss of €37.3 million in H1 2021.
Its R&D costs in the first half of the year declined 18 percent to €19.3 million from €23.4 million, while SG&A expenses rose 17 percent to €18.4 million from €15.7 million.
At the end of June, Biocartis had cash and cash equivalents totaling €19.7 million.
In an effort to bolster its financial position, Biocartis said that it is deleveraging via a partial equitization of 4 percent convertible bonds due in 2024 equal to 10 percent of notional amounts outstanding and maturity extension by three and a half years to November 2027.
The firm is also allowing holders of existing convertible bonds to exchange them into new second lien secured convertible bonds and to participate in a fully covered rights issue of €25 million. Certain existing holders of the new convertible notes will provide a new senior secured term loan that will provide Biocartis with approximately €16 million of additional cash liquidity, the company added.
"These financing arrangements … provide us with an opportunity to strengthen our cash position by approximately €66 million and fundamentally improve our financial structure by pushing out the maturity date on our convertible debt," Biocartis CEO Herman Verrelst said in a statement. "Subject to the successful completion, and upon approval by our bondholders and shareholders, these agreements will provide the resources necessary to continue and execute our growth strategy towards profitability."