Accelerate Diagnostics Reports $50M Net Loss and Decreased Revenue for Fiscal Year 2024

Accelerate Diagnostics, Inc. reported a net loss of $50.0 million for the fiscal year ending December 31, 2024, compared to a loss of $61.6 million in the previous year. The company’s total revenue for 2024 was $11.7 million, a decrease of 3% from $12.1 million in 2023. This decline was primarily attributed to lower sales of the Accelerate Pheno instruments, as fewer new contracts were signed during the year. However, there was a notable increase in sales of the Accelerate PhenoTest BC Kits as customers began purchasing kits after completing instrument verifications.

The company’s total cost of sales decreased by 5% to $9.0 million in 2024, down from $9.5 million in 2023. This reduction was influenced by the absence of inventory write-downs, which had previously impacted the cost of sales in 2023. Gross profit for 2024 was reported at $2.7 million, reflecting a 6% increase from the prior year. Despite this improvement, gross profit less inventory write-downs and non-cash equity-based compensation decreased by 30%, primarily due to increased manufacturing costs driven by inflation.

In terms of operational developments, Accelerate Diagnostics has made significant strides in its product offerings. The company launched the Accelerate Arc system and received FDA approval for it in September 2024. Additionally, the company has entered into a sales and marketing agreement with Becton, Dickinson and Company (BD) to leverage BD's global sales team for the commercialization of its products. As of December 31, 2024, the company had approximately 107 full-time employees, a reduction from previous years, reflecting ongoing efforts to streamline operations.

Looking ahead, Accelerate Diagnostics faces substantial financial challenges, with an accumulated deficit of $718.9 million as of December 31, 2024. The company reported negative working capital of $9.0 million and has indicated that it will need to secure additional funding to continue operations. Management has expressed concerns about the company's ability to continue as a going concern, citing the need for additional capital to fund operations and obligations over the next twelve months. The company is exploring various strategic alternatives, including potential equity and debt financing arrangements, to address its liquidity issues.