Edit question Below you can find the profit and loss (P&L) and cash flow statements of a healthtech company called Bioca
Posted: Mon May 02, 2022 6:38 am
Edit question Below you can find the profit and loss (P&L)
and cash flow statements of a healthtech company called Biocartis.
Biocartis launched a highly innovative molecular diagnostic testing
system called Idylla. Idylla is a fully automated, walkaway,
real-time system to test DNA with a hands-on time of less than two
minutes. Its access on-demand design and assay turnaround time of
between 90 and 150 minutes allow pathologists and doctors to
analyse human samples at any time, without the need for batching or
for trained operators, in virtually any laboratory. It can speed up
the detection of cancer and other diseases in a matter of hours.
The fully integrated system enables clinical laboratories to
perform a broad range of applications in oncology, infectious
diseases and beyond. The revenue model consists of system sales
complemented with cartridge sales to perform the test as shown in
the picture. Different types of cartridges exist to test different
types of diseases.
a) What has been the monthly burn rate including operational and
investment activities in 2016? With the amount of cash left in the
bank at the end of 2016 and assuming the previously calculated burn
stays stable in 2017, what is the runway expressed in months at the
end of 2016?
b) The company has sold 224 Idylla units (recorded above as
Idella system sales) in 2016. The average selling price equalled
€12,300. What is the average customer acquisition cost (CAC) if the
marketing and distribution expenses of €10,324k represent the major
customer acquisition cost related to the Idella system in 2016 and
the average customer buys one unit? How does the CAC compare to the
average selling price? How can they improve the balance between CAC
and customer lifetime value?
c) The so-called “valley of death” (i.e., the negative and
prolonged cash flow curve) has been significant for Biocartis. What
can the founding team do to limit the amount of dilution they will
face when growing this venture?
2016 2015 % Change -8% 116% 15% 18% Key figures (EUR 1,000) Total operating income Cost of sales Research & Development expenses Marketing & Distribution expenses General & Administrative expenses Operating expenses Operational result Net financial result Income tax 13,772 -5,701 -42,091 -10,324 -5,827 -63,943 -50,171 -586 14,951 -2,642 -36,554 -8,747 -6,662 -54,606 -39,655 -790 -13% 17% 27% -26% 980 648 51% 25% 95% 72% Net result -49,777 Cash flow from operating activities -53,312 Cash flow from investing activities -9,342 Cash flow from financing activities 41,804 Net cash flow -20,850 Cash and cash equivalents! 83,247 Financial debt 31,407 Including EUR 1.2m of restricted cash (as a guarantee for KBC lease financing) -39,797 -27,335 -5,436 125,943 93,172 104,087 10,815 -67% -122% -20% 190%
2016 2015 % Change -46% 88% Breakdown operating income (EUR 1,000) Collaboration revenue Product sales revenue Idylla system sales Cartridge sales Service revenue Total revenue Grants and other income Total operating income 5,278 6,767 2,752 4,015 9,686 3,593 2,299 1,294 20% 210% 53 54 -1% -9% 12,098 1,674 13,772 13,334 1,617 14,951 3% -8% CARTRIDGE SYSTEM idylla idylla by BIOCARTIS
and cash flow statements of a healthtech company called Biocartis.
Biocartis launched a highly innovative molecular diagnostic testing
system called Idylla. Idylla is a fully automated, walkaway,
real-time system to test DNA with a hands-on time of less than two
minutes. Its access on-demand design and assay turnaround time of
between 90 and 150 minutes allow pathologists and doctors to
analyse human samples at any time, without the need for batching or
for trained operators, in virtually any laboratory. It can speed up
the detection of cancer and other diseases in a matter of hours.
The fully integrated system enables clinical laboratories to
perform a broad range of applications in oncology, infectious
diseases and beyond. The revenue model consists of system sales
complemented with cartridge sales to perform the test as shown in
the picture. Different types of cartridges exist to test different
types of diseases.
a) What has been the monthly burn rate including operational and
investment activities in 2016? With the amount of cash left in the
bank at the end of 2016 and assuming the previously calculated burn
stays stable in 2017, what is the runway expressed in months at the
end of 2016?
b) The company has sold 224 Idylla units (recorded above as
Idella system sales) in 2016. The average selling price equalled
€12,300. What is the average customer acquisition cost (CAC) if the
marketing and distribution expenses of €10,324k represent the major
customer acquisition cost related to the Idella system in 2016 and
the average customer buys one unit? How does the CAC compare to the
average selling price? How can they improve the balance between CAC
and customer lifetime value?
c) The so-called “valley of death” (i.e., the negative and
prolonged cash flow curve) has been significant for Biocartis. What
can the founding team do to limit the amount of dilution they will
face when growing this venture?
- Edit Question Below You Can Find The Profit And Loss P L And Cash Flow Statements Of A Healthtech Company Called Bioca 1 (478.33 KiB) Viewed 33 times
2016 2015 % Change -46% 88% Breakdown operating income (EUR 1,000) Collaboration revenue Product sales revenue Idylla system sales Cartridge sales Service revenue Total revenue Grants and other income Total operating income 5,278 6,767 2,752 4,015 9,686 3,593 2,299 1,294 20% 210% 53 54 -1% -9% 12,098 1,674 13,772 13,334 1,617 14,951 3% -8% CARTRIDGE SYSTEM idylla idylla by BIOCARTIS