Revenues More Than Double
MADISON, Wis., Nov. 12, 2013 (GLOBE NEWSWIRE) — Cellular Dynamics
International, Inc. (CDI) (Nasdaq:ICEL), a developer and manufacturer
of fully functioning human cells in industrial quantities to precise
specifications, today reported financial results for the third quarter
ended September 30, 2013.
“Trailing twelve months revenue as of September 30, 2013, more than
doubled when compared to the corresponding period last year as did
trailing twelve month average sales to our top 10 customers. Revenue
for the third quarter also more than doubled when compared to the same
period last year, and this growth was achieved with record gross margin
from product sales of 79%,” said Bob Palay, Chairman and CEO of CDI. “A
growing number of pharmaceutical companies are adopting CDI’s products
for their research programs. By the end of the third quarter of 2013
CDI had sold to 142 customers for the trailing twelve months compared
to 115 customers for the same period last year. Our top 10 customers
averaged $704,000 in revenue for the trailing twelve months ended
September 30, 2013, up from $313,000 for the same period last year. We
believe these results add to the growing evidence that our iCell(R) and
MyCell(R) products are becoming an industry standard for manufactured
human cells.”
In addition, as recently announced, the Company received the Notice of
Grant Award (NGA) from the California Institute of Regenerative
Medicine (CIRM) to create a human induced pluripotent stem cell (iPSC)
biobank from 3,000 individuals. Receipt of the NGA signifies the entry
into a definitive agreement with CIRM and the initiation of funding for
the $16 million project. This contract resulted from the CIRM grant
award to CDI announced last March. The Company looks forward to the
revenue from this contract contributing to our expected ongoing revenue
growth in our base business.
Third Quarter 2013 Selected Financial Results
Revenue. Total revenues for the third quarter of 2013 were $2.5 million
compared to $1.2 million for the third quarter of 2012, an increase of
108%. For the trailing twelve months ended September 30, 2013, total
revenues were $10.7 million, compared to $4.6 million for the trailing
twelve months ended September 30, 2012, an increase of 133%. Growth in
total revenue is primarily attributable to growth in unit sales of the
Company’s iCell products and significant increases in revenue from
collaborations under our center of excellence agreements with Eli Lilly
and Company and AstraZeneca UK Limited.
Costs and expenses. Total costs and expenses (excluding cost of product
sales) were $9.3 million for the third quarter of 2013 compared to $6.4
million for the third quarter of 2012, an increase of 45%. This growth
is attributable principally to an increase in supplies expense within
our research and development organization, an increase in staffing
within our sales and marketing organization and to general and
administrative costs attributable to or triggered by our initial public
offering. Approximately $669,000 of general and administrative expenses
in the third quarter of 2013 reflect compensation and fee arrangements
made effective as of the IPO date but attributable to service in the
first and second quarter of 2013. Additionally, the Company incurred
approximately $240,000 for travel and other expenses incurred in
connection with our IPO. Tempering those operating cost increases, cost
of product sales as a percentage of product sales revenue declined from
27% in the third quarter of 2012 to 21% in the third quarter of 2013,
for a record gross margin from product sales of 79%. This compares
favorably to the third quarter of 2012 gross margin from product sales
of 73%.
Net loss. For the third quarter of 2013, net loss was $7.5 million, or
$0.62 per share, compared with a net loss of $5.5 million, or $3.16 per
share, for the third quarter of 2012. Weighted average shares
outstanding for the third quarter of 2013 was 12.1 million versus 1.7
million for the third quarter of 2012. The difference in weighted
average shares outstanding is principally attributable to both the
common shares issued in our IPO and the conversion of our Series A and
Series B preferred stock to common shares immediately prior to the
consummation of our IPO.
Cash and cash equivalents. At September 30, 2013, cash and cash
equivalents totaled $68.6 million.
About Cellular Dynamics International, Inc.
Cellular Dynamics International, Inc. (CDI) is a leading developer of
induced pluripotent stem cell technologies for in vitro drug
development, stem cell banking and in vivo cellular therapeutic
research. CDI harnesses its unique manufacturing technology to produce
differentiated tissue cells in industrial quality, quantity and purity
from any individual’s induced pluripotent stem cell line created from a
standard blood draw. CDI was founded in 2004 by Dr. James Thomson, a
pioneer in human pluripotent stem cell research at the University of
Wisconsin-Madison. CDI’s facilities are located in Madison, Wisconsin,
with a second facility in Novato, California. See
www.cellulardynamics.com.
