Maxcyte Share Discussion Threads

[74tom] 03/2/2022 21:47

Valuation starting to get interesting again here, thankfully the management were smart enough to raise significant capital when the shares were on a high so they can carry on as usual whilst everyone else scrambles over the coming months & years.

Current Market cap; $612m
Cash ~$250m
EV; $362m


EV at the end of 2019; £87m / $120m

So it can certainly still get cheaper, however the business has developed a lot in the last 2 years. I suspect long term support at £2.60 - £3 will be tested at some point this year given the macro challenges ahead.

[sharesoc] 03/2/2022 13:03

We are hosting a webinar with MaxCyte (MXCT) next week (08 February 2022), which may be of interest to current shareholders or potential investors. Doug Doerfler (President and CEO) will be presenting. You can register here:

[one_frankel] 03/2/2022 01:20

If I'm not mistaken, MaxCyte is a high margin consumable but I wasnt aware that they also capitalise on the trials of Pharma so thanks for that Dave!...But margins are rarely sustainable with anticipated solid growth in future especially with market saturation...

By the way Pogue, I'm no Troll but sometimes sentimental investors can't quite see the wood for the trees with their investments and need a little helping hand of objectivity unfortunately!...But I struggle to understand where we have any commonality with our investing looking at your history...

[davep4] 01/2/2022 12:47

Correct analogy edwart! We won't know the value of milestone payments for the new SPL until Jan next year when they are all be bundled together in one number, (individual agreements are confidential). My guess it's worth about USD 100m - 150m. It should be remembered that production consumables and royalties will be on top of the milestone payments - if the therapy gets to market!

[nanopayments] 01/2/2022 10:24

A new SPL: www.londonstockexchange.com/news-article/MXCT/license-with-intima-bioscience/15309636

[edwardt] 01/2/2022 10:08

i think it is called a 'picks and shovels' stock. avoid binary outcomes in the gold rush.

[davep4] 01/2/2022 09:13

One_Frankel - Maxcyte supplies 'clinical based' companies, (since Carma's trials were discontinued, (MCY-M11), Maxcyte no longer has any clinical trials of its own), thus it profits from clinical trials that are being carried out by others.

[edwardt] 01/2/2022 08:09

I added yesterday. Timing do's is harder than it looks!

[pogue] 31/1/2022 16:16

More than 100%, many times more if the drug developed is a massive success, selling machines is like selling lottery tickets but you get a percentage of the winnings as well. Making money selling them is fine but its a limited market and expansion is not going to be the way to massively increase profits there are only so many of these machines you can sell the real profits are in the jackpot winners. That was why I invested here, and subsequently sold near the top as I thought it had got too far ahead of itself on future profit expectations. Someday it may well be worth that value but needs to get those milestone payments rolling. I am waiting for a moment to buy back, could be soon.

[edwardt] 31/1/2022 15:53

pogue - your point is valid - the margins on those payments as and when they arrive must be like near 100%!

[nanopayments] 31/1/2022 14:04

Goldman Sachs on biotech multiples twitter.com/ohadhammer/status/1488143101910831107?s=20&t=qRoF4bMW3XRIB5fgHohVVg

[pogue] 31/1/2022 13:08

Why is anyone here worried about margins? The money is going to come from milestone payments as drugs go through the clinical stages and more especially if they get a blockbuster one or more likely more than one. The more machines they sell the higher the chance of a massive pay day. You do realise this dont you? That is why it got so high in value it was not on the back of selling machines its was in anticipation of milestone payments.
Not talking to Frenkel here by the way have him on filter from elsewhere for being a troll.

[nanopayments] 31/1/2022 12:46

They've maintained those margins at least for as long as they IPOed on the LSE and started releasing their financial statements. Without a significant competitor in ex-vivo delivery, I'm not sure where the competitive pressure will come for lower margins. The market is concerned about higher inflation and interest rates, but I don't have enough confidence in my ability to judge whether that is justified or not, so I focus on the metrics which are specific to MaxCyte. Namely, are they growing the installed base of instruments, the number of SPLs, how many of those SPLs have entered the clinic, and are the milestones associated with those SPLs growing? The answer to all those questions is "yes", and as long as that continues to be the case, at some point the share price will stop moving in the opposite direction to the fundamentals, assuming the broader markets don't crash.

[one_frankel] 31/1/2022 11:29

Let's see if those margins are sustainable in future with its growth buddy...Unfortunately, the spread isn't that enticing with a concerning market environment.

[nanopayments] 31/1/2022 10:31

All good One_Frankel. I'm sure current market conditions have been difficult for a lot of investors. As for raising a lot of capital, that's a good thing if the return on invested capital is higher than the cost of capital. With gross margins on instruments at 90%, and close to 100% on SPLs, I think MaxCyte will generate high returns on the capital they have raised.

[trident5] 31/1/2022 09:50

Why ignore the drivel?

Ignoring the stock based compensation the company's net outflows are c$1m a month, after the two placings there is c$250m on the balance sheet.

Why the need to raise all that cash? It would keep the company going for another 20+ years at the current flow. But -

"MaxCyte intends to use the net proceeds from the Offering for research and development initiatives, to expand its manufacturing capabilities and invest in manufacturing automation, to expand its sales and marketing, business development and field application scientist teams, and for working capital and general corporate purposes".

The cash pile here and that note suggests to me heavy spending to come and big losses.

[one_frankel] 31/1/2022 09:14

Fair point Nano and I doubt many are oblivious to the wider market conditions either buddy!

[adamb1978] 31/1/2022 08:56

All

If the comments in the few posts above are in response to trident5, please just filter him and then ignore his drivel. If people post factually inaccurate things then its best just to not give them the oxygen which they need, and then eventually, when no-one is biting on their comments, they'll go away and find other people to annoy.

Adam

[nanopayments] 31/1/2022 08:34

Gross margins have remained consistently around 90%, so it's also incorrect to say they're diminishing. As for a lack of profitability, R&D represents 68% of total revenue, so this company could become profitable in a hearbeat if it stopped investing for the future. The sharp decline in the share price isn't specific to MaxCyte. There has been a crash in small and mid cap growth stocks across the board, and not just in biotech. Revenue in the core business continues to grow at 30-35% and more of MaxCyte's customers are entering the clinic, so SPLs will also begin contributing more, as Doug Doerfler stated in the press release: "We remain optimistic about the potential for our SPLs to generate meaningful revenue over the next 12 to 18 months and beyond."

[one_frankel] 31/1/2022 08:26

It's a clinical based company that will consume plenty of monies with its progress...What's so difficult to understand here?

[trident5] 30/1/2022 20:05

Evidently not, a big problem here is that management have brought in way too much cash, unless it has massive spending plans and years of losses budgeted.

[edwardt] 30/1/2022 19:54

With "current debt already high"- you actually looked at the balance sheet?

[one_frankel] 28/1/2022 17:05

Well the concerted demise does seem very unreasonable then!

...Having research this a little further, MXCT has been incurring losses since its inception in 1998, and it expects to remain unprofitable until at least this year but with its limited offerings and rising costs, margins are quickly diminishing and with current debt already high whilst expected to rise even further in future with its proposed R&D spend, the concerted ddemise here is likely to be due to rotational investing away from highly indebted relatively early stage growth!

...Also, many of MXCT products are yet to receive full FDA approval without which they cannot be commercialised so there too remains an added risk.

[davep4] 28/1/2022 17:02

Market cap approx US$ 650m with appox US$ 250m cash.

[one_frankel] 28/1/2022 17:00

RNS stated but I think i may have misinterpreted it as going forward instead of their previous years milestones, my apologies!

"This includes raising $257.2m in gross equity proceeds, the completion of an initial public offering in the United States, and commencement of trading in our common stock on the Nasdaq, continuing significant organic growth in our core business, and our ongoing success in signing strategic platform licences with innovative cell therapy developers.