CollPlant is a regenerative medicine company utilizing its proprietary plant-based rhCollagen technology for tissue repair products.
NESS ZIONA, Israel, March 21, 2018 /PRNewswire/ -- CollPlant (NASDAQ: CLGN) (TASE:CLGN), a regenerative medicine company utilizing its proprietary plant-based rhCollagen technology for tissue repair products (recombinant human, "rhCollagen"), today announced financial results for the fourth quarter and year ended December 31, 2017 and provided an update on the Company's business developments.
"During the fourth quarter of 2017, we made significant progress in advancing our 3D-bio printing business. Specifically, our development activities with various biotechnology and medical device companies continued to move forward, as planned. Of note, during the fourth quarter of 2017 and through the first quarter of 2018, we were pleased to have supplied both first and repeat orders of our rhCollagen-based BioInk to a leading, multinational biotechnology company, for the development of organs bioprinting technology. During the fourth quarter of 2017, we also initiated development of a 3D?bioprinted orthopedic implant prototype, leveraging our rhCollagen?based BioInk, for a leading medical device company," said Yehiel Tal, CollPlant's Chief Executive Officer.
"During the first quarter of 2018, we were honored to announce that CollPlant is part of the Regenerative Medicine Development Organization's (ReMDO) advanced biomanufacturing initiative for the development of a universal BioInk with tunable properties for 3D bioprinting of tissues and organs. This important bioink initiative includes 18 leading research and industry organizations, as well as thought leaders in the field of 3D bioprinting, specializing in printing technologies, biomaterials and application research," noted Mr. Tal.
"During the past year, CollPlant expanded its activities within the aesthetic field with the development of a next generation of dermal fillers based on our rhCollagen. We are now actively pursuing collaborations with key companies in this field," added Mr. Tal.
"Additionally, during 2017, we continued to penetrate the European market with sales of our two first products, Vergenix™STR for the treatment of tendinopathy, and Vergenix™FG, a wound filler, for treatment of acute and chronic wounds. Over time, we have received positive feedback from physicians who have treated patients with both of these products and we are working to continue to penetrate the market. We are pleased to note, that, recently, Arthrex GmbH, which distributes our Vergenix™ STR product in combination with its ACP-Tendo, presented promising treatment results based on a European case series, including patients with injuries involving the rotator cuff, Achilles tendon, Perneal tendon, Tibialis tendon and Common extensor tendon," concluded Mr. Tal.
Fourth Quarter 2017 Financial Results
Revenues for the fourth quarter of 2017 were NIS 952,000 ($275,000), an increase of 375% compared to NIS 200,000 ($58,000) for the fourth quarter of 2016.
Gross profit for the fourth quarter of 2017 was NIS 900,000 ($260,000), an increase of 348% compared to NIS 200,000 ($58,000) in the fourth quarter of 2016.
Research and development expenses for the fourth quarter of 2017, net of participations, were NIS 2.98 million ($859,000), an increase of 42% compared to NIS 2.11 million ($608,000) for the fourth quarter of 2016.
General, administrative and marketing expenses for the fourth quarter of 2017 were NIS 4.11 million ($1.19 million), a decrease of 19% compared to NIS 5.04 million ($1.45 million) for the fourth quarter of 2016.
Operating loss for the fourth quarter of 2017 was NIS 6.19 million ($1.78), an increase of 11% compared to NIS 6.95 million ($2.00 million) for the fourth quarter of 2016.
The Company posted a comprehensive loss of NIS 5.91 million ($1.70 million), or NIS 0.04 ($0.01) per share, for the fourth quarter of 2017, compared to a net loss of NIS 7.05 million ($2.03 million), or NIS 0.07 ($0.02) per share, for the fourth quarter of 2016.
Year Ended December 31, 2017 Financial Results
Revenues from sale of VergenixFG, VergenixSTR, and our Bioink in the year ended December 31, 2017 were NIS 1.67 million ($481,000), an increase of 472%, compared to NIS 292,000 ($84,000) in the year ended December 31, 2016.
Gross profit for the year 2017 was NIS 1.62 million ($466,000), an increase of 455% compared to NIS 292,000 ($84,000) for the year ended December 31, 2016.
Research and development expenses for year 2017, net of participations, were NIS 14.07 million ($4.06 million), a decrease of 16% compared to NIS 16.79 million ($4.84 million) for the year ended December 31, 2016.
General, administrative and marketing expenses for the year 2017 were NIS 8.30 million ($2.39 million), a decrease of 25% compared to NIS 11.05 million ($3.19 million) for the year ended December 31, 2016.
Operating loss for the year 2017 was NIS 20.75 million ($5.99 million), a decrease of 25% compared to NIS 27.54 million ($7.94 million) for the year ended December 31, 2016.
Comprehensive loss was NIS 20.88 million ($6.02 million), or NIS 0.16 ($0.05) per share, for the year 2017 compared to a net loss of NIS 27.89 million ($8.04 million), or NIS 0.28 ($0.08) per share, for the year ended December 31, 2016.
Balance Sheet Highlights
As of December 31, 2017, the Company had cash and cash equivalents of NIS 17.82 million ($5.14 million), compared to NIS 3.80 million ($1.10 million) as of December 31, 2016. The increase was mainly due to NIS 32.39 million ($9.34 million) in proceeds generated by financing activities. The Company utilized NIS 17.88 million ($5.16 million) in cash to fund its operating activities during 2017.
For the convenience of the reader, the amounts have been translated from NIS into U.S. dollars, at the representative rate of exchange as of December 31, 2017 (U.S. $1 = NIS 3.467).
The Company's consolidated financial results for the twelve months ended December 31, 2017 are presented in accordance with International Financial Reporting Standards.
About CollPlant
CollPlant is a regenerative medicine company focused on 3D bioprinting of tissues and organs, and on developing and commercializing tissue repair products for orthobiologics, and advanced wound care markets. Our products are based on our rhCollagen (recombinant human collagen) that is produced with CollPlant's proprietary plant based genetic engineering technology.
Our products address indications for diverse fields of organ and tissue repair, and are ushering in a new era in regenerative medicine. Our flagship rhCollagen BioInk product line is ideal for 3D bioprinting of tissues and organs, and our unique Vergenix line of rhCollagen products includes a soft tissue repair matrix for treating tendinopathy and a wound repair matrix to promote a rapid optimal healing of acute and chronic wounds.
For more information about CollPlant, visit http://www.collplant.com.
Safe Harbor Statements
This press release may include forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to CollPlant's objectives plans and strategies, as well as statements, other than historical facts, that address activities, events or developments that Collplant intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as "believes," "hopes," "may," "anticipates," "should," "intends," "plans," "will," "expects," "estimates," "projects," "positioned," "strategy" and similar expressions and are based on assumptions and assessments made in light of management's experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many factors could cause CollPlant's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the Company's history of significant losses and its need to raise additional capital and its inability to obtain additional capital on acceptable terms, or at all; the Company's expectations regarding the timing and cost of commencing clinical trials with respect to tissues and organs which are based on its rhCollagen based Bioink, VergenixSTR, and VergenixFG; the Company's ability to obtain favorable pre-clinical and clinical trial results; regulatory action with respect to rhCollagen based BioInk, VergenixSTR, and VergenixFG including but not limited to acceptance of an application for marketing authorization, review and approval of such application, and, if approved, the scope of the approved indication and labeling; commercial success and market acceptance of the Company's rhCollagen based BioInk, VergenixSTR, and VergenixFG; the Company's ability to establish sales and marketing capabilities or enter into agreements with third parties and its reliance on third party distributors and resellers; the Company's ability to establish and maintain strategic partnerships and other corporate collaborations; the Company's reliance on third parties to conduct some or all aspects of its product manufacturing; the scope of protection we are able to establish and maintain for intellectual property rights and the Company's ability to operate its business without infringing the intellectual property rights of others; the overall global economic environment; the impact of competition and new technologies; general market, political, and economic conditions in the countries in which the Company operates; projected capital expenditures and liquidity; changes in the Company's strategy; and litigation and regulatory proceedings. More detailed information about the risks and uncertainties affecting Collplant is contained under the heading "Risk Factors" included in CollPlant's most recent annual report on Form 20-F filed with the SEC, and in other filings that Collplant has made and may make with the SEC in the future. The forward-looking statements contained in this press release are made as of the date of this press release and reflect CollPlant's current views with respect to future events, and Collplant does not undertake and specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CollPlant Holdings Ltd.
Consolidated Statements of Financial Position
(Audited)
December 31, Convenience
translation
into USD
(Note 1B)
2016 2017 December 31,
2017
----
NIS in thousands In thousands
---------------- ------------
Assets
Current assets:
Cash and cash equivalents 3,797 17,817 5,139
Accounts receivables:
Trade receivables 217 354 102
Other 3,568 3,543 1,022
Inventory 487 700 202
--- --- ---
8,069 22,414 6,465
----- ------ -----
Non-current assets:
Restricted deposit 557 503 145
Long term-receivables 168 92 27
Property and equipment, net 4,008 3,582 1,033
Intangible assets, net 1,631 1,454 419
----- ----- ---
6,364 5,631 1,624
----- ----- -----
Total assets 14,433 28,045 8,089
====== ====== =====
CollPlant Holdings Ltd.
Consolidated Statements of Financial Position
(Audited)
December 31, Convenience
translation
into USD
(Note 1B)
2016 2017 December 31,
2017
----
NIS in thousands In thousands
---------------- ------------
Liabilities and equity
Current liabilities:
Accounts payable:
Trade payables 5,189 2,922 843
Accrued liabilities and
other 1,617 1,996 576
----- ----- ---
6,806 4,918 1,419
----- ----- -----
Non-current liabilities:
Debentures at fair value - 12,639 3,645
Derivatives - 141 41
Royalties to the Israel
Innovation Authority 2,181 1,203 345
Long-term payables 286 61 18
--- --- ---
2,467 14,044 4,049
----- ------ -----
Commitments and contingent
liabilities
Total liabilities 9,273 18,962 5,468
----- ------ -----
Equity:
Ordinary shares 3,207 4,998 1,442
Additional paid in capital
and warrants 159,864 178,467 51,476
Accumulated deficit (157,911) (174,382) (50,297)
-------- -------- -------
Total equity 5,160 9,083 2,621
----- ----- -----
Total liabilities and
equity 14,433 28,045 8,089
====== ====== =====
CollPlant Holdings Ltd.
Consolidated Statements of Comprehensive Loss
Convenience
translation into
USD
---
Three months ended December 31, Year ended December 31, Three months Year ended
ended December December 31,
31,
------------------------------- ----------------------- --------------- -------------
2016 2017 2016 2017 2017
---- ---- ---- ---- ----
Unaudited Audited Unaudited Audited
--------- ------- --------- -------
NIS in thousands In thousands
---------------- ------------
Revenue 200 952 292 1,668 275 481
Cost of Revenue - 52 - 52 15 15
--- --- --- --- --- ---
Gross Profit 200 900 292 1,616 260 466
--- --- --- ----- --- ---
Research and development
expenses:
Research and development expenses 5,999 4,123 29,200 16,921 1,189 4,881
Participation in research and
development expenses (3,892) (1,144) (12,411) (2,855) (330) (823)
------ ------ ------- ------ ---- ----
Research and development
expenses, net 2,107 2,979 16,789 14,066 859 4,058
General, administrative and
marketing expenses 5,041 4,113 11,048 8,303 1,186 2,394
----- ----- ------ ----- ----- -----
Operating loss 6,948 6,192 27,545 20,753 1,785 5,986
----- ----- ------ ------ ----- -----
Financial income (50) (280) (93) (253) (81) (74)
Financial expenses 149 441 380 110
--- --- --- ---
Financial expenses (income), net 99 (280) 348 127 (81) 36
--- ---- --- --- --- ---
Comprehensive loss 7,047 5,912 27,893 20,880 1,704 6,022
----- ----- ------ ------ ----- -----
Basic and diluted loss per
ordinary share (NIS/USD) 0.07 0.04 0.28 0.16 0.01 0.05
Weighted average ordinary shares
outstanding 106,694,658 145,002,163 100,624,945 133,187,048 133,187,048
145,002,163
===========
Contact at CollPlant:
Eran Rotem
Chief Financial Officer
Tel: +972-73-2325600/612
Email: Eran@collplant.com
IR Contact
Amato and Partners, LLC
90 Park Avenue, 17th Floor
New York, NY 10016
admin@amatoandpartners.com
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SOURCE CollPlant
Company Codes: NASDAQ-NMS:CLGN, TelAviv:CLGN |
