FY’21 Q1 Revenues at Upper End of Guided Range

On February 11, 2021 Applied DNA Sciences, Inc. (NASDAQ: APDN) (the "Company"), a leader in Polymerase Chain Reaction (PCR)-based DNA manufacturing, reported consolidated financial results for the quarter ended December 31, 2020 (Press release, Applied DNA Sciences, FEB 11, 2021, View Source [SID1234574928]).

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"The first quarter marked a very strong start to the fiscal year, reflecting burgeoning demand for our COVID-19 diagnostics and surveillance testing offerings (cumulatively "our COVID-19 testing business"). Our revenue performance was driven primarily by new client acquisitions for safeCircle, our pooled surveillance testing service, the full benefit of which we believe will be evident in our March 31, 2021 quarter. We also began to deliver quantities of our Linea COVID-19 Assay Kit (the "Assay Kit") and from which we anticipate recurring orders under the existing contract," said Dr. James A. Hayward, president and CEO, Applied DNA Sciences. "Our emphasis remains on client acquisition, and, to that end, safeCircle business momentum has continued into the March quarter both organically and through CLEARED4, our channel partner, with whom we now enjoy a fourth joint customer. From a COVID-19 testing capacity perspective, we believe we can capably manage demand for safeCircle we see on the horizon and are prepared to deploy additional equipment and further automation beyond that.

"We also began to develop genomic surveillance as a third application of our Assay Kit to potentially expand our COVID-19 testing business. Whereas safeCircle tests within populations for SARS-CoV-2 positivity generally, genomic surveillance seeks to monitor positivity specifically for certain SARS-CoV-2 variants to inform public health decisions. We recently confirmed via in silico analysis and in the field that the unique design of our Assay Kit gives it the ability to discriminate positive virus infections for the presence of certain SARS-CoV-2 variants, some of which that have increased transmissibility. Given the limited gene sequencing capacity available nationally with which to confirm the presence of a variant, variant spread can go, and likely is going, undetected. We have discussions underway with the Departments of Health of multiple States on how our Assay Kit can be utilized to help them implement broader genomic surveillance while variants are less prevalent in the national population and action can be taken against them. We have already received several, initial orders for genomic surveillance from certified laboratories.

"Our Assay Kit’s ability to discriminate for certain variants is also relevant to our safeCircle service that seeks to keep safe and healthy an under-vaccinated populace now also being beset by variants. With a unique test and service offering, an evolving virological threat to which we can help public health officials craft a response, and upon CLEP-CLIA-certification of our diagnostic laboratory, which we continue to progress, we believe we are primed for continued growth in our COVID-19 testing business."

Continued Dr. Hayward, "Looking beyond the pandemic, we continue to advance our long-term strategy to establish our LinearDNA manufacturing platform as a potentially disruptive alternative to plasmid DNA that is used in the manufacture of all nucleic acid-based therapies. We are in the early stages of the assessment of a cGMP (Current Good Manufacturing Practice) production capacity and capability within our LinearRx subsidiary that directly speaks to the maturation of our preclinical CRO (contract research organization) pipeline. Our customers have made clear their expectation for us to support them as a CMO (contract manufacturing organization) and under cGMP conditions for when they initiate animal trials of their therapeutic candidates. The expected initiation of our linear DNA veterinary COVID-19 vaccine trial is in furtherance of our long-term strategy and sets a path to having a therapeutic in the market with an animal health partner."

Concluded Dr. Hayward, "Our supply chain security business is beginning to show early signs of a recovery. COVID-19 has made companies more focused on the need to secure their supply chains and made consumers and brand builders more aware of their exposure to counterfeiting and diversion. We believe that the year lost to the pandemic has created a backlog of demand for our CertainT platform across several end-markets, including textiles, nutraceuticals, and cannabis."

Fiscal First Quarter 2021 Financial Results:

Revenues increased 155% for the first quarter of fiscal 2021 to $1.6 million, compared with $634 thousand reported in the same period of the prior fiscal year and increased 415% from $314 thousand for the fourth quarter of fiscal 2020. The increase in revenues year over year was due primarily to an increase in service revenues of approximately $670 thousand and an increase of $312 thousand in product revenues. The increase in service revenue was primarily from revenues derived from our COVID-19 surveillance testing. The increase in product revenue was mainly attributable to an increase of approximately $395 thousand in sales of our Assay Kit.
Total operating expenses increased to $4.3 million for the first fiscal quarter of 2021, compared with $3.0 million in the prior fiscal year’s first quarter. This increase is primarily attributable to an increase in payroll of $748 thousand. The increase in payroll relates to an increase for officer bonuses of $341 thousand, as well as additional headcount to staff our Applied DNA Clinical Labs subsidiary. The increase in operating expenses also related to an increase in stock-based compensation expense of $367 thousand relating to officer and employee stock option grants that vested immediately.
Net loss applicable to common stockholders for the quarter ended September 30, 2020 was $4.8 million, or $0.88 per share, compared with a net loss of $2.7 million, or $1.12 per share, for the quarter ended December 31, 2019.
Excluding non-cash expenses, Adjusted EBITDA was negative $2.4 million for the quarters ended December 31, 2020 and 2019, respectively. See below for information regarding non-GAAP measures.
Cash and cash equivalents stood at $4.2 million on December 31, 2020. Subsequent to the end of the fiscal quarter, the Company received approximately $15 million in gross proceeds from a registered direct offering. Cash and cash equivalents on January 31, 2021 was approximately $16.5 million.
Fiscal First Quarter 2021 Conference Call Information
The Company will hold a conference call and webcast to discuss its fiscal first quarter-end 2021 results on Thursday, February 11,2021 at 4:30 PM ET. To participate on the conference call, please follow the instructions below. While every attempt will be made to answer investors’ questions on the Q&A portion of the call, not all questions may be answered.

For those investors unable to attend the live call, the webcast and accompanying PowerPoint presentation will also be archived on the ‘IR Calendar’ page listed under the Investor Relations drop-down menu on the Company’s website.

PORTAGE BIOTECH PROVIDES RESEARCH AND DEVELOPMENT UPDATE AND ANNOUNCES NASDAQ LISTING APPROVAL

On February 11, 2021 Portage Biotech Inc. (CSE: PBT.U, OTC Markets: PTGEF) ("Portage" or the "Company") reported its 2021 research and development goals, including advancing three of its pipeline assets through clinical trials during the upcoming year (Press release, Portage Biotech, FEB 11, 2021, View Source [SID1234574927]). Portage also announced that it has received approval from the NASDAQ Capital Market ("NASDAQ") to list its common shares on the NASDAQ exchange, and expects to commence trading February 25, 2021 under the symbol "PRTG."

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2021 Research & Development Focus

Portage aims to catalyze research and development to produce a higher volume of quality clinical programs through its development strategy, commercial insights, and deep network of industry relationships. In 2021, the Company will focus on advancing three promising assets through clinical trials:

A Phase 1/2, open-label, dose-escalation and expansion study to evaluate safety and dosing of PORT-3, an invariant natural killer T-cell agonist (iNKT) co-formulated with an NY-ESO-1 vaccine in a nanoparticle, seeks to enroll patients with advanced prostate or ovarian tumors that express NY-ESO-1, a well-known cancer-testis antigen (CTA). The humoral and cellular immune responses along with the restricted expression of NY-ESO-1 make it a good target for cancer immunotherapies. The study is supported by a grant from the EU Horizon 2020 program. The trial has been approved by the regulatory agency and institutional ethics committee and is ready to start recruiting patients.
A Phase 1/2 trial investigating PORT-2, another iNKT agonist, in a liposomal formulation in patients with non-small-cell lung cancer and melanoma is expected to dose its first patients after COVID-19 restrictions in the United Kingdom (U.K.) ease. The trial is sponsored by Oxford University and has been approved by the University’s research ethics board as well as the Medicines and Healthcare products Regulatory Agency in the U.K.
An ongoing Phase 1 trial has transitioned to Phase 2 to investigate PORT-1 (INT230-6), an intratumoral amphiphilic agent, as a monotherapy and in combination with approved immunotherapies pembrolizumab, through a collaboration with Merck, and ipilimumab through a collaboration with Bristol Myers Squibb. The Phase 2 cohorts will focus on patients with difficult-to treat tumor types including breast, squamous cell, bile duct, pancreatic, colon, liver and sarcoma. Additional details are available on www.clinicaltrials.gov (NCT#03058289).
"Moving the first two programs from our iNKT platform into the clinic represents a huge milestone for our team," said Dr. Ian Walters, chief executive officer of Portage Biotech. "Many patients with difficult-to-treat tumors fail to respond to checkpoint inhibitors, but PORT-2 and PORT-3 may prime the immune system and enable a robust anti-cancer response, expanding potential therapeutics for this population."

Early-Stage Research

STING Agonist

The researchers and staff working on a proprietary immune priming and boosting technology using a STING agonist delivered in a virus-like particle have shown proof of concept in animal models and are beginning to progress the lead asset towards the clinic. This platform offers multiple ways to target immune stimulation towards cancer, as well as how to co-deliver multiple signals in a single product. Researchers have developed a way to administer the product systemically and not require direct tumor injections. The team has received grant funding to study this technology in combination with a COVID-19 vaccine to evaluate if it is possible to boost the immune response for immunocompromised or elderly patients.

Nanolipogel Coformulation

Portage is exploring the delivery of multiple signals to boost the immune response towards cancer in a single product. The Company has conducted further research with the technology licensed from Yale University to co-deliver a PD1 blocking signal with a small molecule vascular endothelial growth factor inhibitor. Other co-formulations are planned for this year. Preliminary data look promising, and the Company hopes to name its first clinical candidate this year.

Dr. Walters concluded, "We continue to evaluate and prioritize our early-stage portfolio and have initiated new collaborations with two leading artificial intelligence players to identify new assets that can be added to our portfolio and fast tracked to the clinic. We aim to bring one to two new entities to clinical testing each year."

Lilly To Participate in SVB Leerink Global Healthcare Conference

On February 11, 2021 Eli Lilly and Company (NYSE:LLY) reported that it will participate in the 10th Annual SVB Leerink Global Healthcare Conference on Wednesday, February 24, 2021 (Press release, Eli Lilly, FEB 11, 2021, View Source [SID1234574926]). Ilya Yuffa, Lilly senior vice president and president of Lilly Bio-Medicines, will participate in a fireside chat at 1:40 p.m., Eastern Time.

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A live audio webcast will be available on the "Webcasts & Presentations" section of Lilly’s investor website at View Source A replay of the fireside chat will be available for approximately 90 days.

Plus Therapeutics to Announce Fourth Quarter and Full Year 2020 Financial Results and Host Conference Call on February 22, 2021

On February 11, 2021 Plus Therapeutics, Inc. (Nasdaq: PSTV) (the "Company"), a clinical-stage pharmaceutical company developing novel, targeted and personalized therapies for rare and difficult to treat cancers, reported fourth quarter and full year 2020 financial results on Monday, February 22, 2021, after market close (Press release, Cytori Therapeutics, FEB 11, 2021, View Source [SID1234574925]). Plus Therapeutics’ management team will then host a conference call and webcast at 5:00 p.m. Eastern Time to discuss the financial results and provide a corporate update.

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A live webcast will be available at ir.plustherapeutics.com/events

Please refer to the information below for conference call dial-in information. Callers should dial in approximately 10 minutes prior to the start of the call.

Conference Call Name: Plus Therapeutics Fourth Quarter and Full Year 2020 Financial Results Conference Call
Following the live call, a replay will be available on the Company’s website under the ‘Investor Relations’ section. The webcast will be available on the Company’s website for 90 days following the live call.

Illumina Reports Financial Results for Fourth Quarter and Fiscal Year 2020

On February 11, 2021 Illumina, Inc. (NASDAQ: ILMN) reported its financial results for the fourth quarter and fiscal year 2020 (Press release, Illumina, FEB 11, 2021, View Source [SID1234574924]).

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Record fourth quarter revenue reflects a strong close to 2020:

Revenue of $953 million, an increase of 20% compared to the third quarter of 2020 and $0.5 million higher compared to the prior year period
GAAP net income attributable to Illumina stockholders for the quarter of $257 million, or $1.75 per diluted share, compared to $239 million, or $1.61 per diluted share, for the prior year period
Non-GAAP net income attributable to Illumina stockholders for the quarter of $179 million, or $1.22 per diluted share, compared to $252 million, or $1.70 per diluted share, for the prior year period. Non-GAAP net income excludes net gains from mark-to-market adjustments on our strategic investments, primarily from our marketable equity securities (see the "Reconciliation Between GAAP and Non-GAAP Net Income Attributable to Illumina Stockholders" table for a reconciliation of these GAAP and non-GAAP financial measures)
Cash flow from operations of $406 million compared to $443 million in the prior year period
Free cash flow (cash flow from operations less capital expenditures) of $344 million for the quarter compared to $386 million in the prior year period
"Illumina delivered a strong finish to 2020 with record fourth quarter revenue exceeding our expectations," said Francis deSouza, Chief Executive Officer. "We also had record orders in the quarter, including record sequencing instrument orders and the second highest quarter for NovaSeq instrument orders. Our business delivered strong sequential growth in the second half of 2020 and we expect continued recovery from the pandemic in 2021."

Gross margin in the fourth quarter of 2020 was 66.1% compared to 69.5% in the prior year period. Excluding amortization of acquired intangible assets and expenses related to COVID-19, non-GAAP gross margin was 66.9% for the fourth quarter of 2020 compared to 70.2% in the prior year period.

Research and development (R&D) expenses for the fourth quarter of 2020 were $200 million compared to $161 million in the prior year period. Non-GAAP R&D expenses as a percentage of revenue were 20.9% compared to 16.8% in the prior year period.

Selling, general and administrative (SG&A) expenses for the fourth quarter of 2020 were $298 million compared to $233 million in the prior year period. Excluding acquisition-related expenses, expenses related to COVID-19, and gain on litigation, non-GAAP SG&A expenses as a percentage of revenue were 25.1% compared to 22.2% in the prior year period.

Depreciation and amortization expenses were $50 million and capital expenditures for free cash flow purposes were $62 million during the fourth quarter of 2020. At the close of the quarter, the company held $3.5 billion in cash, cash equivalents and short-term investments, compared to $3.4 billion as of December 29, 2019.

Fiscal year 2020 results:

Revenue of $3,239 million, a 9% decrease compared to $3,543 million in fiscal 2019
GAAP net income attributable to Illumina stockholders of $656 million, or $4.45 per diluted share, compared to $1,002 million, or $6.74 per diluted share, in fiscal 2019
Non-GAAP net income attributable to Illumina stockholders of $664 million, or $4.50 per diluted share, compared to $976 million, or $6.57 per diluted share, in fiscal 2019 (see the "Itemized Reconciliation Between GAAP and Non-GAAP Net Income Attributable to Illumina Stockholders" table for a reconciliation of these GAAP and non-GAAP financial measures)
Cash flow from operations of $1,080 million compared to $1,051 million in fiscal 2019
Free cash flow (cash flow from operations less capital expenditures) of $891 million, compared to $842 million in fiscal 2019
Gross margin for fiscal 2020 was 68.0% compared to 69.6% in the prior year. Excluding amortization of acquired intangible assets, expenses and income related to COVID-19, and restructuring, non-GAAP gross margin was 69.0% for fiscal 2020 compared to 70.6% in the prior year period.

R&D expenses for fiscal 2020 were $682 million compared to $647 million in the prior year. Excluding expenses and income related to COVID-19, non-GAAP R&D expenses as a percentage of revenue were 21.0% compared to 18.2% in the prior year period.

SG&A expenses for fiscal 2020 were $941 million compared to $835 million in the prior year period. Excluding amortization of acquired intangible assets, acquisition-related expenses, expenses and income related to COVID-19, gain on litigation, and restructuring, non-GAAP SG&A expenses as a percentage of revenue were 24.6% compared to 22.0% in the prior year period.

Updates since our last earnings release:

Expanded NextSeq 2000 flow cell offering with launch of the P3 Reagent Kit and started shipping the NextSeq 1000
Announced TSO 500 partnerships with Bristol Myers Squibb, Kura Oncology, Myriad Genetics, and Merck to advance comprehensive genomic profiling
Launched Illumina Connected Analytics enabling customers to manage, analyze, and explore large volumes of multi-omic data in a secure, scalable, and flexible environment
Partnered with Harvard Pilgrim Health Care to expand access to whole-genome sequencing for genetic disease testing
Won patent infringement suit against BGI in the United Kingdom
Repurchased approximately $280 million of common stock in the fourth quarter with $15 million remaining for repurchase under our current plan
Announced a collaboration with Sequoia Capital China to catalyze the genomic startup ecosystem in China
Financial outlook and guidance

The non-GAAP financial guidance discussed below reflects certain pro forma adjustments to assist in analyzing and assessing our core operational performance. Please see our Reconciliation of Non-GAAP Financial Guidance included in this release for a reconciliation of the GAAP and non-GAAP financial measures.

For fiscal 2021, the company expects year-over-year revenue growth in the range of 17% to 20%, and expects GAAP earnings per diluted share of $4.76 to $5.01 and non-GAAP earnings per diluted share of $5.10 to $5.35. This guidance excludes the potential impact from the pending acquisition of GRAIL, which we expect to close in the second half of 2021.

Quarterly conference call information

The conference call will begin at 2:00 pm Pacific Time (5:00 pm Eastern Time) on Thursday, February 11, 2021. Interested parties may access the live teleconference through the Investor Info section of Illumina’s website under the "Company" tab at www.illumina.com. Alternatively, individuals can access the call by dialing 1 (866) 211-4597 or 1 (647) 689-6853 outside North America, both with conference ID 3809129.

A replay of the conference call will be posted on Illumina’s website after the event and will be available for at least 30 days following.