Rapid Micro Biosystems Reports Second Quarter 2021 Financial Results and Provides Business Update and Full Year 2021 Outlook


Reports second quarter 2021 commercial revenue of $5.7 million, representing 135% year-over-year growth

Issues full-year 2021 outlook for commercial revenue of at least $24.0 million, representing at least 70% year-over-year growth

LOWELL, Mass, Aug. 26, 2021 (GLOBE NEWSWIRE) --  Rapid Micro Biosystems, Inc. (Nasdaq: RPID) (the “Company”), an innovative life sciences technology company providing mission critical automation solutions to facilitate the efficient manufacturing and fast, safe release of healthcare products, today announced its financial results for the second quarter ended June 30, 2021 and provided a business update and full year 2021 outlook.

Financial Highlights and Business Update

  • Generated commercial revenue (combined product and service revenue) of $5.7 million for the second quarter of 2021, representing 135% year-over-year growth.
  • Generated recurring commercial revenue (combined product revenue from consumables and service revenue from service contracts, which the Company considers to be recurring in nature) of $1.9 million, representing 91% year-over-year growth.
  • Placed 8 new systems with customers, bringing cumulative system placements to 103 as of June 30, 2021.
  • Completed validation of 11 new customer systems, bringing cumulative validated systems to 63 as of June 30, 2021.
  • Sold one-millionth consumable since commercial launch of the current-generation Growth Direct® platform.
  • Expanded executive leadership team with key hires in Commercial, Research and Development and Legal and appointed Melinda Litherland to the Board of Directors and as Audit Committee Chair.
  • Completed initial public offering (“IPO”) in July 2021, selling approximately 9.0 million shares of Class A common stock (including the partial exercise of the underwriters’ option to purchase additional shares in August 2021) and raising $165.3 million in net proceeds.

“We are pleased to report solid second quarter results, including very strong year-over-year revenue growth, continued operational execution and the addition of several key team members,” said Robert Spignesi, President and CEO. “Our performance reflects growing adoption of our fully automated Growth Direct microbial quality control platform by both new and existing customers. Following our IPO, we believe we are well positioned to accelerate the adoption of the Growth Direct platform across biopharmaceutical manufacturing and deliver robust performance over the course of 2021 and beyond.”

Second Quarter Financial Results

Total revenue for the second quarter of 2021 was $6.1 million, compared to $2.6 million in the second quarter of 2020, with broad-based growth across the business. A further breakdown of second quarter revenues follows:

  • Commercial revenue (combined product and service revenue) was $5.7 million, compared to $2.4 million in the second quarter of 2020.
  • Recurring commercial revenue was $1.9 million, compared to $1.0 million in the second quarter of 2020.
  • Non-commercial revenue related to the Company’s contract with the U.S. Biomedical Advanced Research and Development Authority (“BARDA”), under which the Company is developing a consumable for rapid sterility testing on its Growth Direct platform, was $0.4 million, compared to $0.2 million in the second quarter of 2020.

Total cost of revenue was $7.9 million in the second quarter of 2021, as compared to $4.2 million in the second quarter of 2020, with the increase largely driven by higher costs related to higher sales volumes.

Total operating expenses were $9.1 million in the second quarter of 2021, as compared to $4.4 million in the second quarter of 2020. The increase was primarily driven by higher sales and marketing, and research and development expenses as well as higher general and administrative expenses incurred to prepare for the IPO and operation as a public company.

Net loss for the second quarter of 2021 was ($11.8) million, as compared to ($9.3) million in the second quarter of 2020, with the larger loss in the current-year period related to higher operating expenses, partially offset by a loss on the extinguishment of debt in the prior-year period.   Net loss per share attributable to common shareholders for the second quarter of 2021 was ($20.01), as compared to ($31.93) in the second quarter of 2020.

Cash and cash equivalents were $100.0 million and debt (excluding unamortized debt discount) was $26.2 million as of June 30, 2021.

The Company’s IPO closed on July 19, 2021 and the underwriters’ partial exercise of their option to purchase additional shares closed on August 4, 2021. As a result, the financial statements as of and for the periods ended June 30, 2021 and 2020 do not reflect these transactions. Following the closing of these transactions, the Company had approximately $260 million in cash and cash equivalents, approximately 41.1 million shares of combined Class A and Class B common stock outstanding and no shares of redeemable convertible preferred stock outstanding.

Full Year 2021 Outlook

The Company expects commercial revenue (combined product and service revenue) to be at least $24.0 million for the full year 2021, representing at least 70% growth over full year 2020.

Webcast Details

The Company will host a conference call after market close today, August 26, 2021, at 1:30pm Pacific Time/4:30pm Eastern Time to discuss its second quarter 2021 financial results. The conference call will be available to investors via live webcast on the Company's website at https://investors.rapidmicrobio.com/. The webcast will then be archived and available for replay for at least 90 days after the event.

About Rapid Micro Biosystems

Rapid Micro Biosystems is an innovative life sciences technology company providing mission critical automation solutions to facilitate the efficient manufacturing and fast, safe release of healthcare products such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company’s flagship Growth Direct platform automates and modernizes the antiquated, manual microbial quality control (MQC) testing workflows used in the largest and most complex pharmaceutical manufacturing operations across the globe. The Growth Direct platform brings the quality control lab to the manufacturing floor, unlocking the power of in-line/at-the-line MQC automation to deliver faster results, greater accuracy, increased operational efficiency, better compliance with data integrity regulations, and quicker decision making, that customers rely on to ensure safe and consistent supply of important healthcare products. The company is headquartered and has U.S. manufacturing in Lowell, Massachusetts, with global locations in Switzerland, Germany, and the Netherlands. For more information, please visit www.rapidmicrobio.com or follow the company on Twitter at @rapidmicrobio or on LinkedIn.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, but not limited to, statements relating to the Company’s expected future revenue and growth and the adoption of the Company's Growth Direct microbial quality control platform.

In some cases, you can identify forward-looking statements by terminology such as “outlook,” “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements involve known and unknown risks, uncertainties and assumptions which may cause actual results to differ materially from any results expressed or implied by any forward-looking statement, including, but not limited to, the impact of the pandemic related to COVID-19 and its variants on our business and operations; our significant losses since inception; our need to raise additional capital to fund our existing operations; risks related to our revenue historically being primarily generated from sales of our Growth Direct platform, proprietary consumables and laboratory information management system connection software; our ability to manage our future growth effectively; our limited experience in marketing and sales; our need to develop new products and adapt to technological changes; our ability to establish and maintain our position as a leading provider of automated microbial quality control testing; our ability to maintain our manufacturing facility; risks related to third-parties; our ability to retain key management and other employees; risks related to regulatory matters; risks related to our intellectual property; and the other important factors outlined under the caption “Risk Factors” in our prospectus dated July 14, 2021, filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b), as such factors may be updated from time to time in our other filings with the SEC, which are available on the SEC's website at www.sec.gov and the Investor Relations page of our website at https://investors.rapidmicrobio.com. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it cannot guarantee future results. The Company has no obligation, and does not undertake any obligation, to update or revise any forward-looking statement made in this press release to reflect changes since the date of this press release, except as may be required by law.

Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)

  Three Months Ended June 30,  Six Months Ended June 30, 
     2021     2020     2021     2020 
Product revenue $4,088  $1,664  $7,806  $2,852 
Service revenue  1,606   755   2,673   1,165 
Non-commercial revenue  436   174   646   1,575 
Total revenue  6,130   2,593   11,125   5,592 
Costs and operating expenses:                
Cost of product revenue  6,092   2,891   11,602   6,103 
Cost of service revenue  1,344   755   2,481   1,706 
Cost of non-commercial revenue  472   536   886   1,333 
Research and development  2,337   1,244   4,485   2,682 
Sales and marketing  3,122   1,236   5,397   2,702 
General and administrative  3,625   1,943   6,827   4,314 
Total costs and operating expenses  16,992   8,605   31,678   18,840 
Loss from operations  (10,862)  (6,012)  (20,553)  (13,248)
Other income (expense):                
Interest expense  (924)  (814)  (1,856)  (1,577)
Change in fair value of preferred stock
 warrant liability
  (35)  544   (11,483)  549 
Loss on extinguishment of debt     (2,910)     (2,910)
Other income (expense)  8   (1)  (3)  6 
Total other income (expense), net  (951)  (3,181)  (13,342)  (3,932)
Loss before income taxes  (11,813)  (9,193)  (33,895)  (17,180)
Income tax expense  18   74   37   94 
Net loss  (11,831)  (9,267)  (33,932)  (17,274)
Accretion of redeemable convertible
preferred stock to redemption value
  (1,184)  (1,232)  (1,971)  (2,050)
Cumulative redeemable convertible
preferred stock dividends
  (885)  (787)  (2,296)  (1,575)
Net loss attributable to common
stockholders — basic and diluted
 $(13,900) $(11,286) $(38,199) $(20,899)
Net loss per share attributable to common
stockholders — basic and diluted
 $(20.01) $(31.93) $(57.17) $(59.13)
Weighted average common shares
outstanding — basic and diluted
  694,698   353,465   668,180   353,465 

Condensed Consolidated Balance Sheets
(in thousands)

  June 30,  December 31, 
     2021     2020 
Current assets:      
Cash and cash equivalents $100,047  $30,079 
Short-term investments     14,998 
Accounts receivable  3,057   4,988 
Inventory  11,910   8,965 
Prepaid expenses and other current assets  3,034   3,120 
Total current assets  118,048   62,150 
Property and equipment, net  7,256   7,052 
Other long-term assets  1,013   695 
Deferred financing fees  2,641    
Restricted cash  284   100 
Total assets $129,242  $69,997 
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit         
Current liabilities:      
Accounts payable $2,574  $4,468 
Accrued expenses and other current liabilities  9,065   6,654 
Deferred revenue  4,366   4,423 
Total current liabilities  16,005   15,545 
Preferred stock warrant liability  15,600   4,117 
Notes payable, net of unamortized discount  24,976   24,810 
Deferred rent, long term  642   705 
Other long-term liabilities  709    
Total liabilities  57,932   45,177 
Redeemable convertible preferred stock  235,836   151,826 
Total stockholders’ deficit  (164,526)  (127,006)
Total liabilities, redeemable convertible preferred
stock and stockholders’ deficit
 $129,242  $69,997 

Condensed Consolidated Statements of Cash Flows
(in thousands)

     Six Months Ended June 30, 
  2021  2020 
Cash flows from operating activities:      
Net loss $(33,932) $(17,274)
Adjustments to reconcile net loss to net cash used in operating
Depreciation and amortization expense  696   857 
Stock-based compensation expense  581   246 
Change in fair value of preferred stock warrant liability  11,483   (549)
Provision recorded for inventory  38    
Noncash interest expense  295   817 
Gain on disposal of property and equipment  (18)   
Accretion on investments  (4)  3 
Loss on extinguishment of debt     2,910 
Changes in operating assets and liabilities      
Accounts receivable  1,931   1,104 
Inventory  (2,984)  (2,582)
Prepaid expenses and other current assets  (43)  (260)
Other long-term assets  (172)  (989)
Accounts payable  (1,894)  (1,510)
Accrued expenses and other current liabilities  1,373   (581)
Deferred revenue  (56)  799 
Deferred rent, long term  (62)  1 
Net cash used in operating activities  (22,768)  (17,008)
Cash flows from investing activities:        
Purchases of property and equipment  (792)  (392)
Proceeds from sale of property and equipment  20    
Purchases of investments     (24,980)
Maturity of investments  15,000    
Net cash provided by (used in) investing activities  14,228   (25,372)
Cash flows from financing activities:        
Proceeds from issuance of redeemable convertible preferred stock,
 net of issuance costs
  79,743   49,935 
Proceeds from issuance of common stock upon option exercise  287    
Proceeds from issuance of restricted stock award  523    
Payments of deferred offering costs  (1,861)   
Proceeds from issuance of convertible notes, net of issuance costs     9,500 
Proceeds from issuance of notes payable, net of issuance costs     25,000 
Payments of debt issuance costs     (857)
Repayment of term loans     (18,000)
Payment of debt extinguishment fees     (1,398)
Net cash provided by financing activities  78,692   64,180 
Net increase in cash, cash equivalents and restricted cash  70,152   21,800 
Cash, cash equivalents and restricted cash at beginning of period  30,179   12,611 
Cash, cash equivalents and restricted cash at end of period $100,331  $34,411 

Investor Contact: David Deuchler Gilmartin Group LLC investors@rapidmicrobio.com Media Contact: media@rapidmicrobio.com