Edesa Biotech Reports Quarterly Financial Results

Jennifer Schram Edesa Biotech, Main Page, Portfolio News, Press Release

TORONTO, ON / ACCESSWIRE / August 14, 2019 / Edesa Biotech, Inc. (NASDAQ:EDSA), a clinical-stage biopharmaceutical company, today reported financial results for the three and six months ended June 30, 2019 and provided an update on its business.

During the quarter, Edesa completed its reverse acquisition and NASDAQ listing and announced plans to proceed with its clinical investigation of EB01, a novel sPLA2 inhibitor, which the company is developing as a potential treatment for chronic allergic contact dermatitis (ACD). Edesa is currently performing site initiation visits at investigational centers in the U.S. and expects to proceed with enrolling the first patient into its Phase 2b clinical trial in the current quarter.

“Our first quarter as a public company has been very productive and I am pleased to report that our team has maintained a rapid pace toward the initiation of our Phase 2b clinical study of EB01. The next few quarters will be an exciting time for Edesa as we expect to enroll our first EB01 patient, expand the utility of our sPLA2 anti-inflammatory technology into additional indications and evaluate additional assets that can provide new value creation opportunities.”

– Dr. Par Nijhawan, Chief Executive Officer of Edesa

Edesa’s Chief Financial Officer, Kathi Niffenegger, reported that the combined company’s working capital at the end of the fiscal quarter was higher than projected. “Our working capital benefited from lower than expected acquisition-related costs as well as steps taken by management to conserve cash during the transaction. As a result, we are well-positioned to support our current clinical plans and activities,” she said.

Related Article: Edesa Biotech Receives Approval to Proceed with U.S. Clinical Study

Financial Results

Three months ended June 30, 2019

Total revenues were not material for the three months ended June 30, 2019 and June 30, 2018 as the company continued to focus on developing and obtaining regulatory approval for its product candidates.

Total operating expenses increased by $0.90 million to $1.32 million for the three months ended June 30, 2019, compared to $0.42 million for the same period last year:

  • Research and development expenses increased by $0.20 million to $0.50 million for the three months ended June 30, 2019 compared to $0.30 million for the same period last year primarily due to an increase in clinical research expenses associated with the Phase 2B clinical study of Edesa’s EB01 product candidate as well as higher personnel expenses.
  • General and administrative expenses increased by $0.70 million to $0.82 million for the three months ended June 30, 2019 compared to $0.12 million for the same period last year primarily due to increased legal and professional fees related to the company’s reverse acquisition, increased personnel expenses and the initiation of public company expenses, which Edesa did not incur as a privately held company.

Net loss for the three months ended June 30, 2019 was $1.29 million, or $0.30 per basic share, compared to a net loss of $0.41 million, or $0.13 per basic share, for the three months ended June 30, 2018.

Six months ended June 30, 2019

Total revenues were not material for the six months ended June 30, 2019 and June 30, 2018.

Total operating expenses increased by $1.01 million to $1.86 million for the six months ended June 30, 2019 compared to $0.85 million for the same period last year:

  • Research and development expenses increased by $0.03 million to $0.61 million for the six months ended June 30, 2019 compared to $0.58 million for the same period last year primarily due to an increase in clinical research expenses associated with the Phase 2B clinical study of Edesa’s EB01 product candidate as well as higher patent fees and personnel expenses.
  • General and administrative expenses increased by $0.97 million to $1.25 million for the six months ended June 30, 2019 compared to $0.28 million for the same period last year primarily due to increased legal and professional fees related to the company’s reverse acquisition, increased personnel expenses and the initiation of public company expenses, which Edesa did not incur as a privately held company.

Net loss for the six months ended June 30, 2019 was $1.82 million, or $0.48 per basic share, compared to a net loss of $0.83 million, or $0.26 per basic share, for the six months ended June 30, 2018.

Edesa changed its year-end from December 31 to September 30 resulting in six months activity during this transitional period through June 30, 2019.

Working Capital

At June 30, 2019, the company had working capital of $6.11 million. Cash and cash equivalents totaled $6.36 million.

Investor Calendar

The company is scheduled to present at the H.C. Wainwright & Co. 21st Annual Global Investment Conference, September 8-10, 2019 in New York, NY. Management will also be attending the BIO Investor Forum in San Francisco, October 22-23, 2019. Investors interested in meetings with management can schedule through the conference meeting systems, or by contacting Edesa investors relations at investors@edesabiotech.com

About Edesa Biotech, Inc.

Edesa Biotech, Inc. (NASDAQ:EDSA) is a clinical-stage biopharmaceutical company focused on efficiently developing innovative treatments that address significant unmet medical needs. Edesa’s lead product candidate, EB01, is a novel non-steroidal anti-inflammatory molecule (sPLA2 inhibitor) for the treatment of chronic allergic contact dermatitis which has demonstrated statistically significant improvements in multiple clinical studies. Edesa also intends to expand the utility of its sPLA2 inhibitor technology, which forms the basis for EB01, across multiple indications and expand its portfolio with assets that can drive long-term growth opportunities. The company is based in Markham, Ontario, Canada, with U.S. offices in Southern California.