Senseonics Holdings, Inc. Reports Second Quarter 2023 Financial Results

Senseonics Holdings, Inc., a medical technology company focused on the development and manufacturing of long-term, implantable continuous glucose monitoring systems for people with diabetes, reported financial results for the quarter ended June 30, 2023.

GERMANTOWN, Md.--(BUSINESS WIRE)-- Senseonics Holdings, Inc. (NYSE American: SENS), a medical technology company focused on the development and manufacturing of long-term, implantable continuous glucose monitoring (CGM) systems for people with diabetes, today reported financial results for the quarter ended June 30, 2023.

Recent Highlights & Accomplishments:

  • Generated revenue of $4.1 million in the second quarter of 2023
  • Submitted an application to the FDA for an iCGM designation for the Eversense CGM system
  • Received a positive coverage decision from UnitedHealthcare, the largest healthcare insurance company in the United States, for the Eversense E3 CGM, expanding access to a total of approximately 300 million covered lives
  • Expanded the NPG sensor inserter network providing patients with further convenient options to start Eversense
  • Presented positive data at the American Diabetes Association 83rd Scientific Sessions highlighting 365 day longevity and accuracy of the Eversense System
  • Entered into a series of exchange agreements to exchange up to $30.8 million in principal amount of the 2025 Notes for a combination of cash and stock, further strengthening the balance sheet

“In the second quarter, we continued to execute on our strategic priorities of advancing our product pipeline and collaborating with Ascensia Diabetes Care, our global commercial partner. The FDA submission for the iCGM designation and the expansion of both Ascensia’s dedicated U.S. CGM salesforce and the NPG partnership support our drive to increase patient and provider adoption of our Eversense System,” said Tim Goodnow, PhD, President and Chief Executive Officer of Senseonics. “Additionally, we are pleased with the positive data readouts presented at ADA, demonstrating that our current sensor configuration delivered accurate results for 365 days. This data gives us confidence in the execution of our product pipeline, and we are looking forward to the next generation products which we expect to further support ADC’s efforts to build the Eversense brand and drive global adoption.”

Second Quarter 2023 Results:

Total revenue for the second quarter of 2023 was $4.1 million compared to $3.7 million for the second quarter of 2022. U.S. revenue was $1.8 million in the second quarter of 2023 compared to $1.2 million in the prior year period, and revenue outside the U.S. was $2.3 million in the second quarter of 2023 compared to $2.5 million in the prior year period.

Second quarter 2023 gross profit of $0.4 million decreased from $0.8 million in gross profit for the second quarter of 2022. The reduction in gross margin was primarily driven by an increase in the revenue share percentage due to Ascensia.

Second quarter 2023 sales and marketing and general and administrative expenses decreased by $1.1 million year-over-year, to $7.5 million. The decrease was the result of reduced personnel costs and other general and administrative costs.

Second quarter 2023 research and development expenses increased by $3.5 million year-over-year, to $12.8 million. The increase was primarily due to investments in our product pipeline for development and clinical trials of next generation technologies.

Net loss was $20.4 million, or $0.04 per share, in the second quarter of 2023 compared to a net income of $104.2 million, or $0.22 per share, in the second quarter of 2022. The change in net income was due to the accounting for embedded derivatives, fair value adjustments and the exchange of the PHC notes last quarter.

Cash, cash equivalents, short and long-term investments were $125.1 million and outstanding indebtedness was $52.4 million as of June 30, 2023.

2023 Financial Outlook

Senseonics reiterates the expectation for full year 2023 global net revenue to be in the range of $20 million to $24 million.

Conference Call and Webcast Information:

Company management will host a conference call at 4:30 pm (Eastern Time) today, August 10, 2023, to discuss these financial results and recent business developments. This conference call can be accessed live by telephone or through Senseonics’ website.

Live Teleconference Information:

Dial in number: 888-317-6003

Entry Number: 2402364

International dial in: 412-317-6061

Live Webcast Information:

Visit http://www.senseonics.com and select the “Investor Relations” section

A replay of the call can be accessed on Senseonics’ website http://www.senseonics.com under “Investor Relations.”

About Senseonics

Senseonics Holdings, Inc. (“Senseonics”) is a medical technology company focused on the development and manufacturing of glucose monitoring products designed to transform lives in the global diabetes community with differentiated, long-term implantable glucose management technology. Senseonics' CGM systems, Eversense®, Eversense® XL and Eversense® E3 include a small sensor inserted completely under the skin that communicates with a smart transmitter worn over the sensor. The glucose data are automatically sent every 5 minutes to a mobile app on the user's smartphone.

Forward Looking Statements

Any statements in this press release about future expectations, plans and prospects for Senseonics, including the revenue projections under “2023 Financial Outlook,” statements about the commercial launch of Eversense® E3, statements regarding increasing patient access and patient and provider adoption, statements regarding advancing development programs and the pipeline, statements regarding strengthening the Eversense® brand, and other statements containing the words “believe,” “expect,” “intend,” “may,” “projects,” “will,” “planned,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: uncertainties inherent in the commercial launch of Eversense® E3 CGM system and commercial expansion of the Eversense product, uncertainties inherent in the expansion of Ascensia Diabetes Care’s U.S. salesforce and its commercial initiatives, uncertainties inherent in collaborating with a new partner in the Nurse Practitioner Group and that partner’s assumption of certain clinical and administrative activities, uncertainties in insurer, regulatory and administrative processes and decisions, uncertainties inherent in the development and registration of new technology, uncertainties relating to the current economic environment, the ability to successfully complete the exchanges of 2025 Notes and such other factors as are set forth in the risk factors detailed in Senseonics’ Annual Report on Form 10-K for the year ended December 31, 2022, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and Senseonics’ other filings with the SEC under the heading “Risk Factors.” In addition, the forward-looking statements included in this press release represent Senseonics’ views as of the date hereof. Senseonics anticipates that subsequent events and developments will cause Senseonics’ views to change. However, while Senseonics may elect to update these forward-looking statements at some point in the future, Senseonics specifically disclaims any obligation to do so except as required by law. These forward-looking statements should not be relied upon as representing Senseonics’ views as of any date subsequent to the date hereof.

Senseonics Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

               
   

June 30,

 

December 31,

 
   

2023

   

2022

   
     

(unaudited)

       
               

Assets

             

Current assets:

             

Cash and cash equivalents

 

$

28,551

   

$

35,793

   

Short term investments, net

   

89,067

     

108,222

   

Accounts receivable, net

   

655

     

127

   

Accounts receivable, net - related parties

   

3,020

     

2,324

   

Inventory, net

   

9,194

     

7,306

   

Prepaid expenses and other current assets

   

7,742

     

7,428

   

Total current assets

   

138,229

     

161,200

   
               

Deposits and other assets

   

6,755

     

3,108

   

Long term investments, net

   

7,453

     

12,253

   

Property and equipment, net

   

925

     

1,112

   

Total assets

 

$

153,362

   

$

177,673

   

Liabilities and Stockholders’ Equity (Deficit)

             

Current liabilities:

             

Accounts payable

 

$

975

   

$

419

   

Accrued expenses and other current liabilities

   

14,256

     

14,616

   

Accrued expenses and other current liabilities, related parties

   

630

     

837

   

Note payable, current portion, net

   

     

15,579

   

Derivative liability, current portion

   

     

20

   

Total current liabilities

   

15,861

     

31,471

   
               

Long-term debt and notes payables, net

   

39,108

     

56,383

   

Derivative liabilities

   

1,792

     

52,050

   

Other liabilities

   

6,408

     

2,689

   

Total liabilities

   

63,169

     

142,593

   
               

Preferred stock and additional paid-in-capital, subject to possible redemption: $0.001 par value per share; 12,000 shares and 12,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022

   

37,656

     

37,656

   

Total temporary equity

   

37,656

     

37,656

   
               

Commitments and contingencies

             
               

Stockholders’ equity (deficit):

             

Common stock, $0.001 par value per share; 900,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 492,826,683 shares and 479,637,138 shares issued and outstanding as of June 30, 2023 and December 31, 2022

   

493

     

480

   

Additional paid-in capital

   

880,129

     

806,488

   

Accumulated other comprehensive loss

   

(120

)

   

(678

)

 

Accumulated deficit

   

(827,965

)

   

(808,866

)

 

Total stockholders’ equity (deficit)

   

52,537

     

(2,576

)

 

Total liabilities and stockholders’ equity

 

$

153,362

   

$

177,673

   

Senseonics Holdings, Inc.

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except share and per share data)

                         
   

Three Months Ended

 

Six Months Ended

   

June 30,

 

June 30,

   

2023

   

2022

   

2023

   

2022

 

Revenue, net

 

$

437

     

137

   

$

750

   

$

429

 

Revenue, net - related parties

   

3,689

     

3,577

     

7,513

     

5,767

 

Total revenue

   

4,126

     

3,714

     

8,263

     

6,196

 

Cost of sales

   

3,709

     

2,890

     

7,433

     

4,845

 

Gross profit

   

417

     

824

     

830

     

1,351

 
                         

Expenses:

                       

Research and development expenses

   

12,830

     

9,299

     

25,235

     

17,103

 

Selling, general and administrative expenses

   

7,455

     

8,561

     

15,173

     

16,445

 

Operating loss

   

(19,868

)

   

(17,036

)

   

(39,578

)

   

(32,197

)

Other income (expense), net:

                       

Interest income

   

1,311

     

241

     

2,420

     

334

 

Gain on fair value adjustment of option

   

     

28,224

     

     

49,925

 

Exchange related gain, net

   

     

     

18,776

     

 

Interest expense

   

(2,310

)

   

(4,510

)

   

(6,962

)

   

(9,005

)

Gain on change in fair value of derivatives

   

289

     

96,548

     

6,067

     

181,117

 

Impairment cost, net

   

     

816

     

     

846

 

Other income (expense)

   

155

     

(52

)

   

178

     

(71

)

Total other (expense) income, net

   

(555

)

   

121,267

     

20,479

     

223,146

 
                         

Net (Loss) Income

   

(20,423

)

   

104,231

     

(19,099

)

   

190,949

 

Other comprehensive income (loss)

                       

Unrealized gain (loss) on marketable securities

   

100

     

(291

)

   

558

     

(916

)

Total other comprehensive gain (loss)

   

100

     

(291

)

   

558

     

(916

)

Total comprehensive (loss) income

 

$

(20,323

)

 

$

103,940

   

$

(18,541

)

 

$

190,033

 
                         

Basic net (loss) income per common share

 

$

(0.04

)

   

0.22

   

$

(0.04

)

 

$

0.42

 

Basic weighted-average shares outstanding

   

567,125,022

     

464,133,903

     

532,499,776

     

460,061,022

 
                         

Diluted net loss per common share

 

$

(0.04

)

   

(0.03

)

 

$

(0.04

)

 

$

(0.06

)

Diluted weighted-average shares outstanding

   

567,125,022

     

601,330,959

     

532,499,776

     

604,342,540

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230810289381/en/

Contacts

Investor Contact
Philip Taylor
Gilmartin Group
415-937-5406
Investors@senseonics.com

Source: Senseonics Holdings, Inc.

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