News Release
TransMedics Reports Fourth Quarter and Full Year 2019 Financial Results
Recent Highlights
- Net revenue of
$6.1 million in the fourth quarter of 2019, representing 71% growth compared to the fourth quarter of 2018 OCS Heart FDA Panel scheduled forApril 16, 2020 - Initiated the OCS Heart DCD program enabling patients access to a broader pool of donor hearts
“2019 was a momentum building year for
Fourth Quarter 2019 Financial Results
Net revenue for the fourth quarter of 2019 was
Gross margin for the fourth quarter of 2019 was 62% as compared to 42% in the fourth quarter of 2018. The continued improvement in gross margin was largely due to the increasing numbers of commercial sales and a higher percentage of domestic sales.
Operating expenses for the fourth quarter of 2019 were
Net loss for the fourth quarter of 2019 was
Cash, cash equivalents and marketable securities were
Full Year 2019 Financial Results
Net revenue for the full year 2019 was
Gross margin for the full year 2019 was 59% as compared to 44% in full year 2018.
Operating expenses for the full year 2019 were
Net loss for the full year 2019 was
2020 Financial Outlook
Webcast and Conference Call Details
The
About
Forward-Looking Statements
This press release contains forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, including statements about our results of operations, commercial opportunity and the rate of adoption and benefits of the OCS. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement. Applicable risks and uncertainties include those related to our anticipation that we will continue to incur losses in the future; our potential need to raise additional funding; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreement, and our ability to obtain additional financing on favorable terms or at all; the fluctuation of our financial results from quarter to quarter; our ability to use net operating losses and research and development credit carryforwards; our dependence on the success of the OCS; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private payors of benefits offered by the OCS; our ability to improve the OCS platform; our dependence on a limited number of customers for a significant portion of our net revenue; the timing of and our ability to obtain and maintain regulatory approvals or clearances for our OCS products; our ability to adequately respond to FDA follow-up inquiries in a timely manner; the performance of our third-party suppliers and manufacturers; the timing or results of clinical trials for the OCS; our manufacturing, sales, marketing and clinical support capabilities and strategy; attacks against our information technology infrastructure; the economic, political and other risks associated with our foreign operations; our ability to attract and retain key personnel; our ability to protect, defend, maintain and enforce our intellectual property rights relating to the OCS and avoid allegations that our products infringe, misappropriate or otherwise violate the intellectual property rights of third parties; our expectations for the pricing of the OCS, as well as the reimbursement coverage for the OCS in
Investor Contact:
631-807-1986
Investors@transmedics.com
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except shares and per share information)
(unaudited)
Fiscal Three Months Ended | Fiscal Twelve Months Ended | ||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||
Net revenue* | $ | 6,057 | $ | 3,544 | $ | 23,604 | $ | 13,017 | |||||||
Cost of revenue | 2,316 | 2,045 | 9,741 | 7,283 | |||||||||||
Gross profit | 3,741 | 1,499 | 13,863 | 5,734 | |||||||||||
Gross Margin | 62% | 42% | 59% | 44% | |||||||||||
Operating expenses: | |||||||||||||||
Research, development and clinical trials | 6,262 | 3,486 | 19,870 | 13,656 | |||||||||||
Selling, general and administrative | 6,173 | 4,374 | 23,596 | 12,315 | |||||||||||
Total operating expenses | 12,435 | 7,860 | 43,466 | 25,971 | |||||||||||
Loss from operations | (8,694) | (6,361) | (29,603) | (20,237) | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (1,063) | (1,073) | (4,353) | (2,720) | |||||||||||
Change in fair value of preferred stock warrant liability |
— | (122) | (341) | (545) | |||||||||||
Other income (expense), net | 590 | (61) | 790 | (213) | |||||||||||
Total other expense, net | (473) | (1,256) | (3,904) | (3,478) | |||||||||||
Loss before income taxes | (9,167) | (7,617) | (33,507) | (23,715) | |||||||||||
Provision for income taxes | (10) | (18) | (40) | (41) | |||||||||||
Net loss | $ | (9,177) | $ | (7,635) | $ | (33,547) | $ | (23,756) | |||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.43) | $ | (5.48) | $ | (2.36) | $ | (17.48) | |||||||
Weighted average common shares outstanding, basic and diluted | 21,170,330 | 1,393,950 | 14,204,787 | 1,358,694 | |||||||||||
* Reconciliation of Gross to Net revenue for certain payments made to customers (in thousands) | |||||||||||||||
Fiscal Three Months Ended | Fiscal Twelve Months Ended | ||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||
Gross revenue from sales to customers | $ | 6,463 | $ | 3,881 | $ | 25,844 | $ | 14,657 | |||||||
Less: clinical trial payments reducing revenue | 406 | 337 | 2,240 | 1,640 | |||||||||||
Total Net Revenue | $ | 6,057 | $ | 3,544 | $ | 23,604 | $ | 13,017 | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
2019 | 2018 |
|||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 20,092 | $ | 20,241 | ||
Marketable securities | 60,596 | — | ||||
Accounts receivable | 6,559 | 3,438 | ||||
Inventory | 11,216 | 9,277 | ||||
Prepaid expenses and other current assets | 1,538 | 1,838 | ||||
Total current assets | 100,001 | 34,794 | ||||
Property and equipment, net | 4,792 | 3,474 | ||||
Deferred offering costs | — | 3,383 | ||||
Restricted cash and other long-term assets | 506 | 506 | ||||
Total Assets | $ | 105,299 | $ | 42,157 | ||
Current liabilities: | ||||||
Accounts payable | $ | 7,247 | $ | 4,720 | ||
Accrued expenses and other current liabilities | 8,332 | 7,178 | ||||
Deferred revenue | 166 | 306 | ||||
Current portion of deferred rent | 370 | 349 | ||||
Total current liabilities | 16,115 | 12,553 | ||||
Preferred stock warrant liability | — | 898 | ||||
Long-term debt, net of discount | 34,146 | 33,670 | ||||
Deferred rent, net of current portion | 389 | 759 | ||||
Total liabilities | 50,650 | 47,880 | ||||
Total Preferred Stock and Stockholders' Equity (Deficit) | 54,649 | (5,723) | ||||
Total Liabilities and Equity | $ | 105,299 | $ | 42,157 |
Source: TransMedics