ThermoGenesis Holdings, Inc. (THMO) stock prices were up by 5.83% as of the market closing on May 24th, 2021, bringing the price per share up to USD$2.54 at the end of the trading day.
PXP-LAVARE Progress
The company announced early in February of 2021 that it had finished the process of developing its innovative PXP-LAVARE System. Concurrently, THMO submitted a Letter to File with an updated device listing to the U.S Food and Drug Administration (FDA). The proprietary system is GMP compliant and facilitates the rapid, automated, and reliable washing of cells. The System is designed as an optional cell reformulation accessory, intended to be used alongside THMO’s PXP-1000 System, which is a 510(k) Class II medical device that serves to isolate different cellular components from blood.
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Net Revenue Decline
THMO reported USD$1.5 million in net revenues for the quarter ended March 31st, 2021, a significant decrease from the USD$3.2 million reported as of March 31st, 2020. The 53% dip was largely attributable to AXP disposable sales, which saw a USD$1.9 million decline with roughly 900 fewer cases being sold in the first quarter of the fiscal year 2021 as compared to the prior year.
Pandemic Challenges
A major driver of the decrease in net revenues is the ongoing and significant adverse effect of the global pandemic on the company’s sale reports. As the global economy hurtles towards universal immunizations, the relaxing of restrictions and government-mandated regulations has resulted in THMO getting ready for the second quarter of fiscal 2021 that will see a modicum of normalcy being returned to the industry.
Post-pandemic Recovery
March of the fiscal year 2021 saw an increase in inquiries for orders, leading the company to believe that revenue will recover in the second quarter of 2021. THMO forecasts that the return of revenue to levels seen before the onset of the pandemic will happen by the end of 2021. The silver lining in the most recent financial reports is that off the decrease in revenue being partially offset by a USD$0.3 million increase in BioArchive sales as a result of increased service revenue.
Solid Liquidity Position
THMO reported having cash and cash equivalents amounting to a total of USD$10 million as of March 31st, 2021, up from the USD$7.2 million reported as of December 31st, 2020. Working capital reported as of March 31st, 2021 was USD$6.4 million, while working capital reports from December 31st, 2020 pegged it at USD$9.2 million.
Future Outlook for THMO
Armed with a solid liquidity position, THMO is positioning itself to capitalize on the post-pandemic return to economic normalcy. Current and potential investors are hopeful that the company will continue to leverage the resources at its disposal to facilitate significant and sustained increases in shareholder value.
