Cesca Therapeutics Announces Fiscal Year 2017 Financial And Operating Results And Provides Corporate Update
Published: Sep 20, 2017
RANCHO CORDOVA, Calif., Sept. 19, 2017 (GLOBE NEWSWIRE) -- Cesca Therapeutics Inc. (NASDAQ:KOOL), a market leader in automated cell processing and point-of-care, autologous cell-based therapies, today announced financial and operating results for the fiscal year ended June 30, 2017 and provided a corporate update.
Fiscal Fourth Quarter and Recent Highlights
- Acquired the cell processing systems of SynGen under an asset acquisition agreement, significantly enhancing the company’s CAR-T cell manufacturing capabilities
- Announced the addition of Phil Coelho, co-founder and chief technology officer of SynGen, as chief technology officer of ThermoGenesis Corp., Cesca’s device subsidiary
- Announced the issuance of a new patent covering next-generation automated technology for isolating and harvesting rare cell types with superior purity, recovery and viability
- Signed a new international distribution agreement with Boyalife WSN Ltd. covering China, India, Singapore, the Philippines and Indonesia
- Increased revolving line of credit with Boyalife Investment Fund II, Inc., a wholly-owned subsidiary of Boyalife Group Inc., to $10 million
- Added to the Russell Microcap® Index, effective June 26, 2017
- Company to convert to a December 31 fiscal year-end and plans to issue a Transitional Form 10-K for the six months ended December 31, 2017
“Since our fiscal third quarter update, we continued to vigorously pursue a new strategic direction for our company as we transform into a leading global provider of automated technologies for cellular processing, cellular biobanking and point-of-care cell-based therapeutics,” said Dr. Chris Xu, chief executive officer of Cesca. “In particular, the acquisition of the cellular processing assets from SynGen significantly strengthened our capabilities in the burgeoning CAR-T field, positioning Cesca as the partner of choice for companies seeking a co-development collaborator, or looking for an automated solution to ease the bottleneck caused by lengthy CAR-T cell manufacturing times. During the period, we also leveraged our affiliation with Boyalife Group by signing a distribution agreement with Boyalife WSN Ltd. This agreement gives us access to several of the world’s fastest growing economies, including India and, most notably, China, where a substantial number of CAR-T clinical trials are currently underway.”
Financial Results for the Full Year Ended June 30, 2017
Net revenue. Net revenues for the twelve months ended June 30, 2017 was $14.5 million compared to $11.9 million for the twelve months ended June 30, 2016. The increase in revenues was primarily a result of increased shipments of AXP disposables to a single end-user customer and distributors in China and Europe, as well as a higher number of BioArchive shipments versus 2016.
Gross profit. Gross profit for the twelve months ended June 30, 2017 was $5.8 million, or 40% of net revenue, compared to $2.7 million, or 23% of net revenue for fiscal 2016. The increase in gross profit margin was primarily due to higher average sales prices on product mix and a reduction in overhead costs during the year ended June 30, 2017.
Sales and marketing expenses. Sales and marketing expenses for the twelve months ended June 30, 2017 decreased $617,000, or 29%, to $1.5 million, compared to $2.1 million for the twelve months ended 2016. The reduction was primarily due to lower personnel costs resulting from the Company’s September 2016 Sales reorganization.
Research and development expenses. Research and development expenses for the twelve months ended June 30, 2017 were $2.5 million, compared to $3.2 million for fiscal 2016. The full-year decrease was primarily due to lower personnel costs coupled with a reduction in rent expense associated with the consolidation of the company’s U.S. operations into its Rancho Cordova facility.
General and administrative expenses. General and administrative expenses for the twelve months ended June 30, 2017 were $11.0 million compared to $8.2 million for fiscal 2016. The increase as compared to 2016 is the result of higher legal fees as well as severance and related costs.
Net loss. For the twelve months ended June 30, 2017, the company reported a net loss of $29.1 million, or ($3.27) per share, based on 8.9 million weighted average common shares outstanding. This compares to a net loss of $18.6 million, or ($7.57) per share, based on 2.5 million weighted average common shares outstanding for the full fiscal year 2016.
Adjusted EBITDA. In addition to the results reported in accordance with U.S. GAAP, Cesca also uses a non-GAAP measure, adjusted EBITDA, to evaluate operating performance and to facilitate comparisons with historical results and trends. For the full fiscal year 2017, Cesca reported an adjusted EBITDA loss of $6.6 million compared to $9.0 million for fiscal 2016. The reduction in the adjusted EBITDA loss was due primarily to higher revenue and resulting higher gross profit margin.