CASI Pharmaceuticals Announces Third Quarter 2020 Financial Results

  • EVOMELA Third Quarter 2020 Revenue Exceeds Expectations; Company Increasing EVOMELA Full-Year Revenue Guidance for 2020
  • Expands Pipeline with First-In-Class Anti-FcyRIIB Monoclonal Antibody with Potential Application Across Multiple Tumor Types
  • Co-Commercial Clinical Asset, CNCT-19 (CD19 CAR-T), Phase 1 Enrollment Progressing Ahead of Schedule; Registration Trials Now Expected to Be Initiated by the end of 2020
  • Company to Host Conference Call Today at 4:30 p.m. ET

 

ROCKVILLE, Md. and BEIJING, Nov. 9, 2020 /PRNewswire/ -- CASI Pharmaceuticals, Inc. (Nasdaq: CASI), a U.S. biopharmaceutical company focused on developing and commercializing innovative therapeutics and pharmaceutical products, today reported financial results and business highlights for the third quarter of 2020.

Wei-Wu He, Ph.D., CASI's Chairman and Chief Executive Officer, commented, "We are pleased to report that EVOMELA revenues for Q3 were $4.2 million. For the full year 2020 revenue, we expect to exceed $14 million, performing better than we had previously forecasted. We are thrilled with the progress we are seeing across our hematology oncology product portfolio. With our recently announced partnership with BioInvent, we gained exclusive Greater China development and commercialization rights to BI-1206, a first-in-class anti-FcyRIIB monoclonal antibody. BI-1206 has broad potential clinical applications across multiple tumor types in many first line indications and in refractory settings, which we look forward to exploring."

Dr. He continued, "With respect to our commercial asset CNCT-19 (CD19 CAR-T), our partner Juventas is making good progress with their current Phase 1 trials in B-NHL and B-ALL, and is expecting to initiate registration trials by the end of 2020. We expect to initiate our Phase 1 study for CID-103 (anti-CD38 monoclonal antibody) in the EU during the first quarter of 2021. We will continue to execute on a number of key milestones across our broad portfolio in the quarters ahead. In parallel, our team will continue tactically evaluating additional strategic opportunities that complement our growing portfolio."

Third Quarter 2020 Financial Results

  • Revenues consisted primarily of product sales of EVOMELA that launched in August of 2019. Revenues were $4.2 million for the three months ended September 30, 2020 compared to $2.7 million for the three months ended September 30, 2019.
  • Costs of revenues were $1.8 million for the three months ended September 30, 2020 compared to $2.6 million for the three months ended September 30, 2019. The decrease in cost of revenues is a result of the transfer to a new manufacturer, resulting in a considerable decrease in the unit cost of inventories of EVOMELA.
  • Research and development expenses for the three months ended September 30, 2020 were $2.8 million, compared with $1.8 million for the three months ended September 30, 2019. The increases in R&D expenses are primarily due to increases in 2020 R&D expenses incurred related to the development of CID-103, and costs associated with the EVOMELA post marketing study.
  • General and administrative expenses for the three months ended September 30, 2020 were $5.3 million, compared with $8.0 million for the three months ended September 30, 2019. The decrease in general and administrative expenses was primarily because the 2019 period included costs related to sales and marketing efforts to prepare for the August 2019 launch of EVOMELA, as well as lower professional fees and travel costs incurred during the 2020 period.
  • Selling and marketing expenses for the three months ended September 30, 2020 were $2.1 million, compared with $975,000 for the three months ended September 30, 2019. The increase is due to selling costs related to commercial sales of EVOMELA that began in August of 2019.
  • Acquired in-process R&D expenses for the three months ended September 30, 2020 was $10.9 million, compared to $0 million for the three months ended September 30, 2019. Expense of $0.6 million relates to 2020 milestone fees paid to Pharmathen due to the first submission to the National Medical Products Administration in China for Octreotide which was achieved during 2020 and $10.3 million relates to milestone fees paid to Juventas.
  • Net loss for the third quarter of 2020 was $16.8 million compared to $9.7 million for the same period in 2019.
  • As of September 30, 2020, the Company had cash and cash equivalents of $74.6 million compared to $44.9 million as of June 30, 2020. As reported, the Company consummated an underwritten public offering in July 2020 generating gross proceeds of approximately $43.7 million.

Further information regarding the Company, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, can be found at www.casipharmaceuticals.com.

Conference Call

The Company will host a conference call reviewing the third quarter highlights today at 4:30 p.m. ET. The conference call can be accessed by dialing (833) 647-4459 (U.S.), (800) 870-0181 (China), (400) 682-8629 (China, domestic), (580) 86567 (Hong Kong) to listen to the live conference call. The conference ID number for the live call is 8835514.

This call will be recorded and available for replay by dialing (855) 589-2056 (U.S.) or (404)-537-3406 (international) and enter 8835514 to access the replay.

About CASI Pharmaceuticals

CASI Pharmaceuticals, Inc. ("CASI" or the "Company") is a U.S. 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., which is located in Beijing, China. The Company has built a commercial team of over 70 hematology and oncology sales and marketing specialists based in 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, revenue growth, 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 we assume no duty to update forward-looking statements. New factors emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Actual results could differ materially from those currently anticipated due to a number of factors.

EVOMELA® is proprietary to Acrotech Biopharma LLC and its affiliates.

COMPANY CONTACT:

CASI Pharmaceuticals, Inc.

240.864.2643

ir@casipharmaceuticals.com

INVESTOR CONTACT:

Solebury Trout

Jennifer Porcelli

646.378.2962

jporcelli@troutgroup.com

(Financial Table Follows)

 

CASI Pharmaceuticals, Inc.

 

Unaudited Condensed Consolidated Balance Sheets

 

(In thousands, except share and per share data)

           
     

September 30, 2020

 

December 31, 2019

ASSETS

           

Current assets:

           
               
 

Cash and cash equivalents

 

$

74,592

 

$

53,621

 

Investment in equity securities, at fair value

   

1,796

   

625

 

Accounts receivable, net of $0 allowance for doubtful accounts

   

4,078

   

1,293

 

Inventories

   

720

   

4,542

 

Prepaid expenses and other

   

1,794

   

1,420

 

Assets held-for-sale

   

298

   

3,221

Total current assets

   

83,278

   

64,722

               

Property and equipment, net

   

984

   

985

Intangible assets, net

   

13,015

   

13,674

Long-term investments

   

27,569

   

14,038

Right of use assets

   

9,015

   

8,708

Other assets

   

377

   

504

Total assets

 

$

134,238

 

$

102,631

               

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY

           

Current liabilities:

           
 

Accounts payable

 

$

2,697

 

$

5,113

 

Accrued and other current liabilities

   

2,858

   

2,834

Total current liabilities

   

5,555

   

7,947

               

Deferred income

   

2,270

   

Other liabilities

   

13,615

   

1,019

Total liabilities

   

21,440

   

8,966

               

Commitments and contingencies

           
               

Redeemable noncontrolling interest, at redemption value

   

21,271

   

20,670

               

Stockholders' equity:

           
 

Preferred stock, $1.00 par value: 5,000,000 shares authorized and 0 shares issued and outstanding

   

   

 

Common stock, $0.01 par value: 250,000,000 shares authorized at September 30, 2020 and December 31, 2019; 124,023,374 shares and 97,851,243 shares issued at September 30, 2020 and December 31, 2019, respectively; 123,943,829 shares and 97,771,698 shares outstanding at September 30, 2020 and December 31, 2019, respectively

   

1,240

   

979

 

Additional paid-in capital

   

656,639

   

606,686

 

Treasury stock, at cost: 79,545 shares held at September 30, 2020 and December 31, 2019

   

(8,034)

   

(8,034)

 

Accumulated other comprehensive loss

   

(1,507)

   

(2,728)

 

Accumulated deficit

   

(556,811)

   

(523,908)

Total stockholders' equity

   

91,527

   

72,995

Total liabilities, redeemable noncontrolling interest and stockholders' equity

 

$

134,238

 

$

102,631

CASI Pharmaceuticals, Inc.

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

                         
   

Three Months Ended September 30

 

Nine Months Ended September 30

   

2020

 

2019

 

2020

 

2019

Revenues:

                       

Product sales

 

$

4,205

 

$

2,749

 

$

10,215

 

$

2,749

Lease income

   

37

   

38

   

104

   

38

Total revenues

   

4,242

   

2,787

   

10,319

   

2,787

                         

Costs and expenses:

                       

Costs of revenues

   

1,828

   

2,648

   

7,556

   

2,648

Research and development

   

2,803

   

1,829

   

7,682

   

7,375

General and administrative

   

5,347

   

7,977

   

13,490

   

20,669

Selling and marketing

   

2,062

   

975

   

4,879

   

975

(Gain) loss on disposal of intangible assets

   

   

   

(450)

   

48

Impairment of intangible assets

   

   

   

1,537

   

Acquired in-process research and development

   

10,862

   

   

11,943

   

5,849

Total costs and expenses

   

22,902

   

13,429

   

46,637

   

37,564

                         

Loss from operations

   

(18,660)

   

(10,642)

   

(36,318)

   

(34,777)

Non-operating income/(expense):

                       

Interest income, net

   

432

   

414

   

775

   

783

Other income

   

20

   

   

47

   

Foreign exchange (losses) gains

   

(526)

   

719

   

(278)

   

1,269

Change in fair value of investment in equity securities

   

1,978

   

(160)

   

2,287

   

(355)

Net loss

   

(16,756)

   

(9,669)

   

(33,487)

   

(33,080)

Less: (loss)/ income attributable to redeemable noncontrolling interest

   

(309)

   

(23)

   

(584)

   

53

Accretion to redeemable noncontrolling interest redemption value

   

506

   

245

   

1,185

   

406

Net loss attributable to CASI Pharmaceuticals, Inc.

 

$

(16,953)

 

$

(9,891)

 

$

(34,088)

 

$

(33,539)

                         

Net loss per share (basic and diluted)

 

$

(0.14)

 

$

(0.10)

 

$

(0.32)

 

$

(0.35)

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

   

117,940

   

95,891

   

105,922

   

95,753

                         

Comprehensive loss:

                       

Net loss

 

$

(16,756)

 

$

(9,669)

 

$

(33,487)

 

$

(33,080)

Foreign currency translation adjustment

   

2,383

   

(1,836)

   

1,221

   

(2,636)

Total comprehensive loss

 

$

(14,373)

 

$

(11,505)

 

$

(32,266)

 

$

(35,716)

Less: Comprehensive (loss)/income attributable to redeemable noncontrolling interest

   

(309)

   

(23)

   

(584)

   

53

Comprehensive loss attributable to common stockholders

 

$

(14,064)

 

$

(11,482)

 

$

(31,682)

 

$

(35,769)

View original content:http://www.prnewswire.com/news-releases/casi-pharmaceuticals-announces-third-quarter-2020-financial-results-301168392.html

SOURCE CASI Pharmaceuticals, Inc.


Company Codes: NASDAQ-SMALL:CASI

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