Full Press Release Details
Edesa Biotech Reports Fiscal 1st Quarter 2020 Results
ON / ACCESSWIRE / February 13, 2020 / Edesa Biotech, Inc.
(Nasdaq: EDSA), a clinical-stage biopharmaceutical company, today
reported financial results for the three months ended December 31,
2019 and provided an update on its business.
During the quarter, Edesa expanded an ongoing Phase 2b study of its
lead product candidate, EB01, following positive safety data in
healthy volunteers. 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. Edesa plans to expand the utility of its
anti-inflammatory technology, which forms the basis of EB01, into
additional indications, including hemorrhoids disease (HD). The
company expects to initiate a proof of concept study in HD later
this year. Following the quarter end, in January, the company
completed a $4.36 million equity financing, which included
significant participation from Edesa's current institutional
investors and insiders.
Dr. Par Nijhawan, Chief Executive Officer of Edesa, said that the
company intends to move rapidly to initiate the proof of concept
study in HD. This indication represents a significant
expansion and market opportunity for our anti-inflammatory
technology platform. We also plan to identify new clinical assets
and technologies that fit our strategy of developing new treatments
that address unmet medical needs, have large addressable markets
and are complementary to the portfolios of larger biopharmaceutical
Edesa's Chief Financial Officer, Kathi Niffenegger, reported
that expenditures during the quarter reflected increased activity
levels in the company's clinical programs as well public
company expenses that Edesa did not incur as a privately held
company. The change in our operational expenses over the
comparable period reflect the ongoing transformation of the company
and the priority we have placed on advancing our EB01 program,
building on our technology platform and delivering on clinical and
corporate milestones.
Financial Results for the Three Months Ended December 31,
Total revenues for the three months ended December 31, 2019 were
$0.11 million, reflecting sale of product inventory obtained in the
reverse acquisition completed in June 2019. There were no revenues
for the three months ended December 31, 2018.
Total operating expenses increased by $0.80 million to $1.21
million for the three months ended December 31, 2019 compared to
$0.41 million for the same period last year:
of sales and services was less than $0.01 million for the three
months ended December 31, 2019, reflecting the sales of product
inventory obtained in the reverse acquisition. There were no
product sales in the same period last year.
and development expenses increased by $0.27 million to $0.53
million for the three months ended December 31, 2019 compared to
$0.26 million for the same period last year. The increase was
primarily due to increased external research expenses related to
the initiation of clinical studies for the company's EB01
drug product candidate as well as higher personnel
and administrative expenses increased by $0.53 million to $0.68
million for the three months ended December 31, 2019 compared to
$0.15 million for the same period last year. The increase was
primarily due to increased salaries and related personnel expenses,
increased legal and professional fees, and public company
For the three months ended December 31, 2019, Edesa reported a net
loss of $1.09 million, or $0.15 per basic share, compared to a net
loss of $0.36 million, or $0.11 per basic share, for the three
months ended December 31, 2018.
* Financial results for any periods ended prior to June 7, 2019
reflect the financials of the company's subsidiary Edesa
Biotech Research, Inc. on a standalone basis.
At December 31, 2019, the company had working capital of $4.12
million. Cash and cash equivalents totaled $4.33
On January 8, 2020, the company closed a registered direct offering
of common shares and concurrent private placement of purchase
warrants. The company received aggregate gross proceeds in the
offering of $4.36 million, before deducting fees to the placement
agent and other estimated offering expenses payable by the company.
The company intends to use the net proceeds from the financing for
general corporate purposes, which may include working capital,
capital expenditures, and research and development
Edesa management will be attending the American Contact Dermatitis
Society Annual Meeting and Dermatology Innovation Forum, both on
March 19, 2020 in Denver, Colorado; and the Bio-Europe Spring 2020
Conference being held March 23-25, 2020 in Paris. 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.
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
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as