Key highlights of the plant-based technology company’s 4Q, which ended December 31, and its full-year report include:
- 4Q revenue increased to $3.8 million, driven entirely by increased sales volumes of high oleic (HO) soybean oil and soybean meal;
- Net cash used in the quarter was $7.9 million, reflecting savings and efficiencies over previously announced financial guidance of $3 million to $3.25 million per month of net cash used;
- Revenue for 2019 increased to $7.3 million, driven by the launch of HO soybean oil and soybean meal. As of December 31, all the HO soybean meal produced from the 18,000 acres harvested in 2018 has been sold;
- Net cash used in 2019 was $35.3 million, compared to $18.4 million in 2018, excluding the benefit from the company's May 2018 follow-on capital raise. The commercialization of its HO soybean products, including investment in personnel and purchases of grain, drove the increase in cash used year-over-year; and
- Cash and cash equivalents totaled $58.6 million, reflecting a cash runway into mid-2021.
“2019 was a transformative year for Calyxt, centered around four major achievements,” said CEO Jim Blome in a statement.
“First, we built the team to execute on our technology-focused business plan; second, we transformed our R&D team and its work systems; third, we established our soybean supply chain to support our growth trajectory and our future wheat product launch; and fourth, we were the first company to commercialize a gene-edited food product focused on consumer health, right here in the United States.”
Looking ahead to the rest of 2020, Blome said to meet the expected demand for the company’s HO soybean oil, it has nearly tripled its contracted soybean acreage compared to the 2019 planting. The company expects to have a 25% market share of all HO soybean acres planted in the US in 2020.
“All of this sets the stage for a breakthrough 2020, where we expect to power our R&D pipeline with new projects and tools, as well as enhanced processes, initiate consultations with regulatory authorities, and continue to make stage advancements in our development process,“ he added.
Eying revenue growth of 90% to 110% year-over-year
Calyxt also hopes to achieve revenue growth of 90% to 110% year-over-year and an improvement in its gross margin by 3,000 to 3,500 basis point year-over-year. And the company expects to use between $34 million to $38 million in net cash.
“We maintained our cash usage trajectory throughout 2019 while building out infrastructure to support the robust growth in our soybean business,” said CFO Bill Koschak.
“With investment in our corporate infrastructure, we are set to scale operations in 2020 – both in terms of finalizing new collaborations and increased sales volumes of our soybean products. Going forward we continue to see high revenue growth and an improved margin profile as we continue to bring new products to market leveraging our proprietary gene-editing technology.”
He added: “Looking forward to 2020, we expect to continue our cash usage rate in line with what we delivered in 2019. I expect that our cash position will be sufficient to fund operations into mid-2021."
Based in Roseville, Minnesota, the consumer-centric food- and the agriculture-focused company develops healthier specialty food ingredients and food crops using gene-editing technology.
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