CASI Pharmaceuticals Announces Second Quarter 2023 Business and Financial Updates

BEIJING, Aug. 11, 2023 /PRNewswire/ -- CASI Pharmaceuticals, Inc. (Nasdaq: CASI), a biopharmaceutical company focused on developing and commercializing innovative therapeutics and pharmaceutical products, today reported financial results for the quarter ended June 30, 2023.

Wei-Wu He, Ph.D., CASI's Chairman and Chief Executive Officer, commented, "We are pleased to report $9.8 million sales revenue for the second quarter of 2023. This is a 15% increase compared to the same period last year and an 18% of increase from the first quarter of 2023."

Dr. He continued, "Advancement, development, and commercialization of the portfolio remains our strategic focus. We have achieved a major milestone with our partner Juventas Biotechnology (Tianjin) Co., Ltd. ("Juventas") on the CNCT-19 CAR-T Cell therapy. CNCT-19's New Drug Application (NDA) was accepted by National Medical Products Administration (NMPA) in December 2022. We are now diligently preparing for the anticipated CNCT-19 launch in China. We are advancing the clinical development of BI-1206 in combination with rituximab and presently undertaking the enrollment of patients for the second cohort of the phase I trial in China. We are transitioning the development of CID-103 into China for the malignant hematology indications. In addition, we acquired global rights for CB-5339 from Cleave Therapeutics in July. On August 1st, we announced the transfer of license of Folotyn® in China from Mundipharma International Corporation Limited, Mundipharma Medical Company, and Acrotech Biopharma Inc.. We continue to advance our portfolio by executing on several milestones as well as bringing in new potential opportunities for synergy in the quarters ahead."

Second Quarter 2023 Financial Highlights

  • Revenue was $9.8 million for the three months ended June 30, 2023, compared to $8.6 million for the three months ended June 30, 2022.
  • Costs of revenues were $4.0 million for the three months ended June 30, 2023, compared to $3.6 million for the three months ended June 30, 2022.
  • Research and development expenses for the three months ended June 30, 2023 were $2.6 million, compared with $3.9 million for the three months ended June 30, 2022.
  • General and administrative expenses for the three months ended June 30, 2023 were $7.7 million, compared with $5.5 million for the three months ended June 30, 2022. The increase was mainly attributable to the $2.2 million share-based compensation expenses allocated to general and administrative expenses related to the Company's modification to certain share options granted under the 2011 Long-term Incentive Plan and 2021 Long-term Incentive Plan.
  • Selling and marketing expenses for the three months ended June 30, 2023 were $4.8 million, compared with $3.4 million for the three months ended June 30, 2022. The increase was mainly attributable to travel and conference expenses incurred for our commercial activities.
  • As of June 30, 2023, CASI had cash, cash equivalents and short-term investments of $36.8 million.

About CASI Pharmaceuticals

CASI Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing innovative therapeutics and pharmaceutical products in China, the United States, and throughout the world. The Company is focused on acquiring, developing, and commercializing products that augment its hematology oncology therapeutic focus as well as other areas of unmet medical need. The Company intends to execute its plan to become a leader by launching medicines in the greater China market, leveraging the Company's China-based regulatory and commercial competencies and its global drug development expertise. The Company's operations in China are conducted through its wholly-owned subsidiary, CASI Pharmaceuticals (China) Co., Ltd., located in Beijing, China. More information on CASI is available at www.casipharmaceuticals.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for expectations for future financial or business performance, strategies, expectations, and goals. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and no duty to update forward-looking statements is assumed. Actual results could differ materially from those currently anticipated due to a number of factors, including: the risk that we may be unable to continue as a going concern as a result of our inability to raise sufficient capital for our operational needs; the possibility that we may be delisted from trading on The Nasdaq Capital Market; the volatility in the market price of our ordinary shares; the risk of substantial dilution of existing shareholders in future share issuances; the difficulty of executing our business strategy in China; our inability to enter into strategic partnerships for the development, commercialization, manufacturing and distribution of our proposed product candidates or future candidates, including with respect to BI-1206, CB-5339 and CID-103; our lack of experience in manufacturing products and uncertainty about our resources and capabilities to do so on a clinical or commercial scale; risks relating to the commercialization, if any, of our products and proposed products (such as marketing, safety, regulatory, patent, product liability, supply, competition and other risks); our inability to predict when or if our product candidates will be approved for marketing by the U.S. Food and Drug Administration (FDA), National Medical Products Administration (NMPA), or other regulatory authorities; our inability to enter into strategic partnerships for the development, commercialization, manufacturing and distribution of our proposed product candidates or future candidates, including with respect to our partnerships with Juventas and BioInvent; the risks relating to the need for additional capital and the uncertainty of securing additional funding on favorable terms; the risks associated with our product candidates, and the risks associated with our other early-stage products under development; the risk that result in preclinical and clinical models are not necessarily indicative of clinical results; uncertainties relating to preclinical and clinical trials, including delays to the commencement of such trials; our ability to protect our intellectual property rights; the lack of success in the clinical development of any of our products; and our dependence on third parties; the risks related to our dependence on Juventas to conduct the clinical development of CNCT19 and to partner with us to co-market CNCT19; risks related to our dependence on Juventas to ensure the patent protection and prosecution for CNCT19; risks relating to the commercialization, if any, of our proposed products (such as marketing, safety, regulatory, patent, product liability, supply, competition and other risks); risks relating to interests of our largest shareholders and our Chairman and CEO that differ from our other shareholders; and risks related to the development of a new manufacturing facility by CASI Wuxi. Such factors, among others, could have a material adverse effect upon our business, results of operations, and financial condition. We caution readers not to place undue reliance on any forward-looking statements, which only speak as of the date made. Additional information about the factors and risks that could affect our business, financial condition, and results of operations, are contained in our filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov.

EVOMELA® is proprietary to Acrotech Biopharma Inc. and its affiliates. FOLOTYN® is proprietary to Mundipharma International Corporation Limited and its affiliates.

COMPANY CONTACT:

Rui Zhang
CASI Pharmaceuticals, Inc.
Phone: 240.864.2643
Email: ir@casipharmaceuticals.com

CASI Pharmaceuticals, Inc.

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 
 

June 30, 2023

December 31, 2022

Current assets:

   

Cash and cash equivalents

16,915

47,112

Short-term investments

19,851

1,462

Investment in equity securities, at fair value

2,028

2,763

Accounts receivable

12,529

12,973

Inventories

7,767

6,138

Prepaid expenses and other

1,914

2,975

Total current assets

61,004

73,423

     

Term deposit, non current

-

3,065

Property and equipment, net

10,122

11,831

Intangible assets, net

537

1,063

Long-term investments

3,636

4,398

Right of use assets

1,368

1,398

Other assets

1,207

1,056

Total assets

77,874

96,234

     

Current liabilities:

   

Accounts payable

2,374

3,289

Accrued and other current liabilities

9,533

11,816

Income tax payable

-

1,900

Total current liabilities

11,907

17,005

     

Other liabilities

12,124

12,297

Total liabilities

24,031

29,302

     

Redeemable noncontrolling interest, at redemption value

21,617

22,358

     

Shareholders' equity:

   

Ordinary shares

1

1

Additional paid-in capital

695,224

691,766

Treasury shares

(9,604)

(9,330)

Accumulated other comprehensive loss

(1,594)

(703)

Accumulated deficit

(651,801)

(637,160)

Total shareholders' equity

32,226

44,574

     

Total liabilities, redeemable noncontrolling interest and shareholders' equity

77,874

96,234

CASI Pharmaceuticals, Inc.

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

 
 

Three months ended

 

Six months ended

 

June 30, 2023

June 30, 2022

 

June 30, 2023

June 30, 2022

           

Revenues

         

Product sales

9,820

8,550

 

18,167

17,575

Lease income from a related party

-

23

 

-

60

Total revenues

9,820

8,573

 

18,167

17,635

           

Costs of revenues

3,986

3,550

 

7,364

7,308

           

Gross profit

5,834

5,023

 

10,803

10,327

           

Research and development

2,614

3,851

 

5,148

7,843

General and administrative

7,701

5,520

 

13,446

10,845

Selling and marketing

4,820

3,398

 

8,782

6,675

Foreign exchange loss (gain)

44

(1,355)

 

(15)

(1,688)

Total operating expense

15,179

11,414

 

27,361

23,675

           

Loss from operations

(9,345)

(6,391)

 

(16,558)

(13,348)

           

Interest income, net

139

40

 

341

114

Changes in fair value of investments

(938)

(1,153)

 

(1,078)

(2,708)

Other income

89

11

 

1,426

49

Net loss before share of net loss in an equity investee

(10,055)

(7,493)

 

(15,869)

(15,893)

Income tax expense

-

-

 

-

-

Share of net loss in an equity investee

(15)

-

 

(32)

-

Net loss

(10,070)

(7,493)

 

(15,901)

(15,893)

Less: loss attributable to redeemable noncontrolling interest

(593)

(548)

 

(1,260)

(965)

accretion to redeemable noncontrolling interest redemption value

762

735

 

1,607

1,348

Net loss attributable to CASI Pharmaceuticals, Inc.

(10,239)

(7,680)

 

(16,248)

(16,276)

           

Weighted average number of ordinary shares outstanding (basic and diluted)

13,344,548

13,606,130

 

13,341,897

13,700,282

Net loss per share (basic and diluted)

(0.77)

(0.56)

 

(1.22)

(1.19)

           

Comprehensive loss:

         

Net loss

(10,070)

(7,493)

 

(15,901)

(15,893)

Foreign currency translation adjustment

(2,177)

(3,541)

 

(1,979)

(3,293)

Total comprehensive loss

(12,247)

(11,034)

 

(17,880)

(19,186)

           

Less: comprehensive loss attributable to redeemable noncontrolling interest

(1,789)

(1,800)

 

(2,348)

(2,144)

Comprehensive loss attributable to ordinary shareholders

(10,458)

(9,234)

 

(15,532)

(17,042)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/casi-pharmaceuticals-announces-second-quarter-2023-business-and-financial-updates-301898463.html

SOURCE CASI Pharmaceuticals, Inc.


Company Codes: NASDAQ-SMALL:CASI

Back to news