OpGen Provides Update on Curetis Preliminary, Unaudited 2019 Condensed Combined Key Financials and Business Update
February 20 2020 - 8:40AM
OpGen, Inc. (Nasdaq: OPGN) reported an update on the business of
Curetis GmbH (“Curetis”), the other party to the planned business
combination with OpGen. Today, Curetis announced preliminary,
unaudited 2019 condensed combined key financials and provided a
business update.
Revenue of the Curetis business in 2019 amounted
to EUR 2.3 million, up by 64% compared to EUR 1.4 million in 2018.
This revenue was realized from a total contract order volume of
about EUR 3.4 million received in 2019, up by a factor of more than
three comparted to contract order volume in 2018 (EUR 1.1 million).
Revenue growth in 2019 was primarily driven by partnering projects
of Curetis Group Company Ares Genetics as well as increasing uptake
of Curetis’ Unyvero product line. Preliminary, unaudited operating
loss of the condensed combined business for fiscal year 2019 was
approximately EUR 17.2 million compared to EUR 21.6 million in
2018, an improvement of about 21%. This improvement is mainly
driven by significant reductions in operating costs for R&D as
well as distribution (marketing and sales) and comes despite
significantly increased G&A costs that were driven by one-off
transaction-related expenses for the preparation and implementation
of the proposed business combination.
Key accomplishments of the Curetis business in
2020 year-to-date include:
- Curetis’ launch of the Unyvero LRT Panel for BAL specimens in
the U.S. following receipt of 510(k) clearance by the U.S. FDA in
December 2019. The panel includes atypical pathogens such as
Pneumocystis jirovecii important for immunocompromised patients and
is commercially available to Curetis’ U.S. customers since end of
January 2020. The LRT BAL panel is expected to substantially
increase the total addressable market for the Unyvero System in the
U.S.
- Curetis GmbH’s subsidiary Ares Genetics’ collaboration with BGI
Group to offer Next-Generation Sequencing (NGS) and PCR-based
Coronavirus (2019-nCoV) testing in Europe.
- Curetis GmbH and Quaphaco entered into an exclusive
distribution partnership for Vietnam for an initial term of three
years with Quaphaco committing to a minimum purchase totaling
approximately EUR 1.9 million during such initial term.
Had the business combination with OpGen taken
place at the start of 2019, combined revenue for both companies
would have been approximately $6 million, a 31% increase from 2018
(approximately $4.6 million).
“We are pleased with the progress Curetis has
made in both product development and revenue generation over the
past year, and believe those results, along with our own, provide a
positive outlook of the combined companies moving forward,” said
Evan Jones, CEO, OpGen. “We are looking forward to closing the
business combination in the near future and to continue the growth
of both companies as one moving forward.”
The preliminary financial results of Curetis and
OpGen are estimates prior to the completion of the companies’
financial closing procedures and audit procedures by its external
auditors and therefore may be subject to adjustment when the actual
results are available.
OpGen and Curetis entered into a definitive
agreement to combine businesses on September 4, 2019. The closing
of the transaction under such definitive agreement has not yet
occurred and is subject to a number of significant closing
conditions, including receipt of approval from the stockholders of
OpGen, Inc. and the shareholders of Curetis, N.V. To this end,
OpGen filed and furnished to its stockholders a proxy
statement/prospectus and a notice of special meeting of OpGen
stockholders to be held on March 10, 2020 to approve the business
combination with Curetis. On the same day at 1:00pm CET, Curetis
will host its extraordinary shareholder meeting with the objective
of seeking approval from its shareholders for the planned business
combination with OpGen.
Until the closing occurs, each of OpGen and
Curetis are operating as stand-alone businesses.
About OpGen
OpGen, Inc. is a precision medicine company
harnessing the power of molecular diagnostics and informatics to
help combat infectious disease. We are developing molecular
information products and services for global healthcare settings,
helping to guide clinicians with more rapid and actionable
information about life threatening infections, improve patient
outcomes, and decrease the spread of infections caused by
multidrug-resistant microorganisms, or MDROs.
Our molecular diagnostics and informatics
products, product candidates and services combine our Acuitas
molecular diagnostics and Acuitas Lighthouse informatics platform
for use with our proprietary, curated MDRO knowledgebase. We are
working to deliver our products and services, some in development,
to a global network of customers and partners. The Acuitas AMR Gene
Panel (RUO) is intended for Research Use Only and is not for use in
diagnostic procedures. The Acuitas Lighthouse Software is not
distributed commercially for antibiotic resistance prediction and
is not for use in diagnostic procedures. For more information,
please visit www.opgen.com.
OpGen, Acuitas, and Acuitas Lighthouse are
registered trademarks of OpGen, Inc.
Forward-Looking Statements
This press release includes statements relating
to the completion of the business combination with Curetis N.V.,
pursuit of FDA clearance for the Acuitas AMR Gene Panel for use
with bacterial Isolates, the use of proceeds from the October 2019
public offering and the activities related to the Company's
products and services. These statements and other statements
regarding OpGen’s future plans and goals constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, and are intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Such statements are subject to risks
and uncertainties that are often difficult to predict, are beyond
our control, and which may cause results to differ materially from
expectations. Factors that could cause our results to differ
materially from those described include, but are not limited to,
the fact that we have broad discretion as to the use of proceeds
from the October 2019 public offering and that we may not use the
proceeds effectively; risks and uncertainties associated with
market conditions, OpGen’s ability to successfully and timely seek
approval of, and obtain approval of its stockholders for the
business combination with Curetis N.V., satisfy the closing
conditions under the Implementation Agreement, successfully combine
the businesses of OpGen and Curetis GmbH, comply with the
complexities of a global business, achieve the synergies we expect,
successfully implement the combined company’s strategic and
business goals and objectives, advance our current and planned
510(k) clearance submissions with the FDA, and continue our
activities under the New York State Infectious Disease Digital
Health Initiative. For a discussion of the most significant risks
and uncertainties associated with OpGen's business, please review
our filings with the Securities and Exchange Commission (SEC). You
are cautioned not to place undue reliance on these forward-looking
statements, which are based on our expectations as of the date of
this press release and speak only as of the date of this press
release. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
OpGen Contact:Michael
FarmerVice President, Marketing(240) 813-1284mfarmer@opgen.com
Press Contact:Matthew
BretziusFischTank Marketing and PRmatt@fischtankpr.com
Investor Contact:Joe
GreenEdison Groupjgreen@edisongroup.com
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