Full Press Release Details
Edesa Biotech Reports Financial Results for Short Period Fiscal
ON / ACCESSWIRE / December 12, 2019 / Edesa Biotech, Inc.
(Nasdaq: EDSA), a clinical-stage biopharmaceutical company, today
reported financial results for the nine-month period ended
September 30, 2019 and provided an update on its
Edesa recently enrolled the first patient in a Phase 2b clinical
study of its lead product candidate, EB01. The company is
developing EB01 as a monotherapy for patients with chronic allergic
contact dermatitis (ACD), a debilitating disease that is frequently
caused by allergens present in the workplace. In December, the
company reported that based on positive safety data in healthy
volunteers, the company would expand the study to include ACD
patients with symptoms on the face, a commonly effected area. The
experimental drug previously demonstrated positive results in two
previous studies in ACD patients.
In 2019, Edesa also advanced plans to expand the utility of its
anti-inflammatory technology, which forms the basis of EB01, into
additional indications. This included an approval by Health Canada
to conduct a proof-of-concept study of the company's product
candidate, EB02, as a treatment for hemorrhoids disease
We have maintained a rapid pace this year and I'm
pleased to report that our team has delivered on our key clinical
and corporate milestones. In addition to the transition we made to
the public equity markets, we laid the foundation for a number of
value creation opportunities in the coming year, said Dr.
Par Nijhawan, Chief Executive Officer of Edesa. We are
looking forward to the interim data readout for our Phase 2b study
in ACD as well as initiating a clinical study of our
anti-inflammatory technology in HD.
Edesa's Chief Financial Officer, Kathi Niffenegger, CPA reported
that operating expenses, including expenditures related to
increased activities for the EB01 clinical program, were largely in
line with management's expectations for the fiscal year.
We remain committed to the capital efficient product
development model that Edesa adopted as a private company and plan
to continue to focus our working capital on the advancement of our
Financial Results for the Nine-Month Period Ended September 30,
The company's year-end financial results reflect a nine-month
period as a result of a change in fiscal year following the
company's reverse acquisition completed in June
Total revenues for the nine-month period ended September 30, 2019
were $0.41 million, reflecting the initiation of sales of product
inventory obtained in the reverse acquisition completed in June
2019. There were no revenues for the year ended December 31,
Total operating expenses increased by $1.62 million to $3.24
million for the nine-month period ended September 30, 2019 compared
to $1.62 million for the prior year ended December 31,
of sales and services was $0.10 million for the nine-month period
ended September 30, 2019, reflecting the initiation of sales of
product inventory obtained in the reverse acquisition. There were
no revenues in the prior year ended December 31, 2018.
and development expenses were $1.10 million for the nine-month
period ended September 30, 2019, reflecting greater clinical
research activities related to the initiation of the
company's Phase 2B clinical study of its EB01 product
candidate as well as higher personnel expenses. Research and
development expenses were $1.08 million for the prior
and administrative expenses were $2.05 million for the nine-month
period ended September 30, 2019, reflecting increased legal and
professional fees related to the company's reverse
acquisition, increased personnel expenses and public company
expenses, which Edesa did not incur as a privately held company.
General and administrative expenses were $0.54 million for the
For the nine-month period ended September 30, 2019, Edesa reported
a net loss of $2.78 million, or $0.55 per basic share, compared to
a net loss of $1.54 million, or $0.47 per basic share, for the
prior year ended December 31, 2018.
At September 30, 2019, the company had working capital of $5.18
million. Cash and cash equivalents totaled $5.03
Management will be attending the Dermatology Summit on January 12,
2020 and the Biotech Showcase from January 13-15, 2020. Both events
are being held in San Francisco, California. Members of the
investment or biopharma communities interested in meetings with
management can schedule one-on-ones through the conference online
systems or by contacting Edesa at investors@edesabiotech.com.
*As a result of the acquisition accounting for the business
combination completed on June 7, 2019, and the subsequent change in
year end of the company's subsidiary Edesa Biotech Research,
Inc., the comparative year-end data represent the nine months
period ended September 30, 2019 and the twelve months ended
December 31, 2018, which should be taken into account when
reviewing comparative results. Financial results for any periods
ended prior to June 7, 2019 reflect the financials of Edesa Biotech
Research, Inc. on a standalone basis.
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. A Phase 2b clinical
study of EB01 was initiated in October 2019. 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.
Edesa Forward-Looking Statements