Somalogic sales drop, losses mount

BOULDER — SomaLogic Inc. (Nasdaq: SLGC), a Boulder-based biotechnology company that went public last year in a merger with a special purpose acquisition company, has dropped its full-year revenue sales guidance as revenues lagged and losses mounted in the second quarter of 2022. 

The company, which develops platforms to read thousands of proteins in a patient’s blood or urine sample that may signal illnesses or future health conditions and suggest potential treatments via machine learning, posted second quarter 2022 revenues of $14.1 million, a 28.5% decrease from $19.8 million.

Research and development costs, along with other selling, general and administrative expenses, grew $22 million year over year.

“The increase corresponds with our investments in content expansion, compliance, and other growth initiatives,” the company said. 

SomaLogic posted a nearly $23 million net loss in the second quarter of 2022. That’s compared to a loss of $13.3 million in the same period last year.

“At SomaLogic, we remain excited by the commercial and scientific opportunity to unlock the human proteome and enable breakthroughs for our customers and society at large. While we have seen 100% new customer growth over the past 12 months, our reliance on a service business continues to produce variability in our quarterly results. Our second quarter results were further amplified by domestic and global macroeconomics and supply chain challenges slowing sample delivery and customer spend across geographies,” SomaLogic CEO Roy Smythe said in a prepared statement.

He continued: “To account for these challenges, we are revising annual guidance and similarly, reducing our cash spend while continuing to invest in our commercial team build. We are also leaning into activities to drive increased revenue opportunities from existing customers as well as new customer acquisition. Our substantial cash position provides a unique opportunity to leverage organic and inorganic approaches to diversify our platforms and products, increase scale, continue to attract execution talent, and grow revenue. While frustrating in the near term, we remain confident that we have a unique opportunity to build a differentiated, scalable and durable business.”       

SomaLogic is reducing its 2022 revenue guidance to $80 million to $90 million to account for “ongoing variability in core service business, macroeconomic and commercial factors,” the company said. The firm’s prior anticipated revenues were in the range of $105 million to $110 million.

SomaLogic published its quarterly earnings report on Monday. The company’s stock has since hovered between about $4 and $4.50 per share. 

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