Commercial cell-engineering company MaxCyte (MXCT:AIM) increased full-year revenue guidance on Tuesday after reporting a strong first quarter to 31 March 2022.

Based on expectations for the core business which generates revenue from instrument and disposables sales to cell therapy and drug discovery customers, management anticipates ‘at least’ 25% growth for the full year.

The company also reiterated it expects $4 million of revenue to be generated from its Strategic Platform License program. The shares responded positively to the results and raised guidance, gaining 5% to 413p.

STRONG GROWTH

Overall revenue grew 78% year-on-year to $11.6 million driven by strong growth in the core business which grew 48% to $9.6 million.

The Strategic Platform License program generated $2 million of sales compared with immaterial revenues in 2021.

Chief executive Doug Doerfler commented: ‘We are pleased with this positive start to 2022 at MaxCyte, with very strong first quarter results, including 48% year-over-year core business revenue growth driven by ongoing significant growth in sales to cell therapy customers.

‘The milestone revenue recorded over the period reflects the progress being made by our partners in early and mid-stage clinical development programs.’

HIGH GROSS MARGINS

MaxCyte’s sales generated high gross margins of 91% up slightly from the prior year driven by a higher proportion of pure license revenues. Gross profit increased 81% to $10.5 million.

The company’s products and technologies are protected by an intellectual property portfolio consisting of over 130 patents granted and more than 60 pending worldwide.

Operating expenses increased 20.5% to $14.7 million driven by investment in headcount to support growth in sales and science activities.

The company recorded a first quarter loss of $4.1 million compared with $7.1 million in 2021. Total cash and equivalents were $246.3 (around £200 million) million at the period end.

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Issue Date: 10 May 2022