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SomaLogic Scores One-Time, $21.2M Licensing Royalty in Q3, Raises FY 2022 Revenue Guidance

NEW YORK – SomaLogic reported on Monday that it has recorded a one-time licensing royalty of $21.2 million related to a deal with New England Biolabs.

The payout includes an $8 million upfront payment and recognition of $13.2 million in future guaranteed minimums, CFO Shaun Blakeman said on a conference call with investors to discuss the firm's third quarter financial results.

"This is just one example of licensing opportunities we hope to pursue in the future," he said.

As a result of the royalty, the Boulder, Colorado-based company raised its full-year 2022 revenue guidance to a range of $93 million to $98 million. In August, the firm lowered revenue guidance to a range of $80 million to $90 million.

The payment was part of $41.7 million in total revenues for the three months ended Sept. 30, more than double the $20.0 million SomaLogic posted a year ago and beating the average analyst estimate of $20.1 million. Core life sciences revenues were $20.5 million, up 3 percent year over year from $20.0 million a year ago.

Service revenue was flat at $17.6 million. Product revenue was $1.1 million, up thirteenfold from $75,000 a year ago. Collaboration revenue was flat at $763,000.

"We are pleased to have added more than 50 new customers to our platform over the past 12 months," CEO Roy Smythe said in a statement. "We remain committed to the growth of our core life sciences business and will continue to invest strategically in our global commercial organization to ensure we are well positioned to capitalize on the immense opportunities now and ahead in proteomics. At the same time, we are being judicious with our spend and protecting our strong balance sheet by focusing resources on key life science opportunities that will have the highest impact going forward."

SomaLogic's net loss during Q3 was $32.9 million, or $.18 per share, compared to a loss of $41.4 million, or $.30 per share, in the year-ago quarter, beating the average analyst estimate of $.20 loss per share. The firm used approximately 184.4 million shares to calculate per-share loss for Q3 2022 compared to about 137.2 million shares in the year-ago period.

The company's R&D expenses rose 24 percent to $19.4 million from $15.6 million in Q3 2021. SG&A expenses more than doubled to $51.2 million from $20.6 million in Q3 2021. The increase was primarily due to investments to enable SomaLogic's growth acceleration initiatives, the firm said.

SomaLogic ended the quarter with $380.4 million in cash and cash equivalents, and $186.0 million in investments.

In Monday morning trading on the Nasdaq, SomaLogic shares were down 6 percent to $3.10.