On May 22, 2019 Anchiano Therapeutics Ltd. (Nasdaq and TASE: ANCN) ("Anchiano"), a pivotal-stage biopharmaceutical company focused on the discovery and development of novel therapies to treat cancer, reported financial results for its first quarter ended March 31, 2019 (Press release, Anchiano Therapeutics, MAY 22, 2019, View Source [SID1234536515]).
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Key Developments and Recent Highlights
·Closed an initial public offering ("IPO") of Anchiano’s American Depositary Shares ("ADSs") on February 14, 2019, resulting in gross proceeds of $30.5 million. The ADSs began trading on the Nasdaq Capital Market ("Nasdaq") under the symbol "ANCN."
Following the IPO, Anchiano’s financial resources are expected to meet its needs until the second quarter of 2020.
·Initiated delisting of its ordinary shares from the Tel Aviv Stock Exchange (TASE). The last day the ordinary shares will trade on the TASE is expected to be June 13, 2019, and the ordinary shares are expected to be delisted from the TASE on June 17, 2019.
"We are pleased with the progress we have made this quarter as a company, with the continued development of inodiftagene, our gene therapy for bladder cancer; our U.S. IPO and Nasdaq listing; and the subsequent steps we have taken to delist from the TASE," stated Frank Haluska, M.D., Ph.D., President and Chief Executive Officer of Anchiano. "We believe we are now well positioned with a U.S.-based clinical development operation, a strong U.S. shareholder base, a strong balance sheet, and an exciting product candidate in its pivotal phase of development. We look forward to announcing several clinical milestones this year as we continue the Codex pivotal clinical trial of inodiftagene for the treatment of early-stage bladder cancer."
First Quarter 2019 Financial Results:
On March 31, 2019, Anchiano had total cash and cash equivalents of approximately $32.1 million, compared to approximately $7.5 million on December 31, 2018.
Research and development expenses for the first quarter of 2019 were approximately $4.1 million, compared to approximately $2.5 million in the first quarter of 2018. The increase was mainly due to an increase in clinical trial expenses, manufacturing expenses and an increase in clinical manpower.
General and administrative expenses for the first quarter of 2019 were approximately $1.3 million, compared to approximately $0.9 million in the first quarter of 2018. The increase was mainly due to an increase in professional and consulting expenses, insurance, rent expenses, and employee options and payroll provisions.
Financing expenses, net, in the first quarter of 2019 were approximately $12.9 million compared to approximately $0.08 million in the first quarter of 2018. This change was mainly due to changes in the fair value of derivative financial instruments.
Net loss for the first quarter of 2019 was approximately $18.4 million, or $0.70 per share, compared to approximately $3.5 million, or $0.37 per share in the first quarter of 2018.