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OpGen - Optimistic start to kick off a promising year

OpGen has reported a productive quarter marked by advancements across the board. Operating loss improved to $5.1m during the quarter (from $5.8m in Q122), driven by 94% y-o-y top-line growth (to $0.9m) and stronger cost controls (total expenses of $6.0m vs $6.3m in Q122). Looking ahead, we anticipate tailwinds from the post-period signing of the Unyvero distribution partnership with Fisher Healthcare and the de novo FDA submission for its UTI panel in April. While Unyvero and ARES will be the key focus areas for FY23, we expect advancement of the FIND collaboration to be another important catalyst. With $11m in gross proceeds raised to date in FY23, with offsets from upcoming debt repayments, we anticipate OpGen will need to raise another $7.5m to fund operations for the second half of FY23. Our updated estimates reflect the recent newsflow, including the Fisher Healthcare distribution agreement. Our overall valuation increases to $71.5m (from $66.7m) but our per-share valuation decreases to $11.7/share ($12.2/share previously) with the higher post-raise share count.