Full Press Release Details
Edesa Biotech Reports Fiscal 2nd Quarter 2020 Results
ON / ACCESSWIRE / May 15, 2020 / Edesa Biotech, Inc. (Nasdaq:
EDSA), a clinical-stage biopharmaceutical company, today reported
financial results for the three and six months ended March 31, 2020
and provided an update on its business.
reported that two new biologic drug candidates acquired last month
are rapidly being integrated into the company's development
pipeline. Known as EB05 and EB06, these TLR4 and CXCL10 antagonists
are believed to have application in a broad range of therapeutic
areas, including potential treatments for COVID-19 pneumonia and
acute respiratory distress syndrome (ARDS). Since the lead drug has
already been manufactured, the company believes that with
government support it could quickly begin clinical studies in
Nijhawan, Chief Executive Officer of Edesa, said that the company
is applying its expertise in immune modulation and inflammation
therapies toward finding solutions for hospitalized COVID-19
patients. We believe there is compelling data to prioritize
this project, and we are optimistic that modulating these well
understood TLR4 and CXCL10 signaling pathways could reduce the
number of ICU patients and intubation/ventilation procedures, and
save lives, he said.
Nijhawan noted that ARDS, a respiratory condition which stops
oxygen from reaching the bloodstream, remains a serious unmet
medical need. Even excluding COVID-19 patients, there are
approximately 3 million cases of ARDS each year globally despite
the widespread use of prophylactic vaccines and herd
the quarter, Edesa also reported that the company took steps to
simplify enrollment and patient care for its ongoing Phase 2b
clinical study of EB01 for the treatment of allergic contact
dermatitis. To support current social distancing requirements, the
trial protocol now allows for fewer in-person office visits and
provides guidelines for remote telehealth appointments, among other
procedural updates. The company is closely monitoring the impacts
of governmental directives related to COVID-19 on its investigation
centers and patient enrollment.
Chief Financial Officer, Kathi Niffenegger, reported that there
have been no significant changes to the company's internal
operations related to the pandemic, and that Edesa staff have been
working remotely since early March. Expenditures have
continued to track in line with management's plans and our
clinical activities. We strengthened our balance sheet in January
and plan to continue to evaluate our options for non-dilutive grant
funding to accelerate the advancement of our newly acquired drug
Financial Results for the Three Months Ended March 31,
Total revenues for the three months ended March 31, 2020 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 March 31, 2019.
Total operating expenses increased by $1.09 million to $1.63
million for the three months ended March 31, 2020 compared to $0.54
million for the same period last year:
of sales and services was $0.01 million for the three months ended
March 31, 2020, reflecting the sales of product inventory obtained
in the reverse acquisition. There were no product sales in the same
and development expenses increased by $0.39 million to $0.50
million for the three months ended March 31, 2020 compared to $0.11
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 increased salary and related personnel
and administrative expenses increased by $0.68 million to $1.11
million for the three months ended March 31, 2020 compared to $0.43
million for the same period last year. The increase was primarily
due to increased salary and related personnel expenses, increased
legal and professional fees, and public company
For the three months ended March 31, 2020, Edesa reported a net
loss of $1.49 million, or $0.17 per basic share, compared to a net
loss of $0.53 million, or $0.16 per basic share, for the three
months ended March 31, 2019.
Financial Results for the Six Months Ended March 31,
Total revenues for the six months ended March 31, 2020 were $0.22
million, reflecting sale of product inventory obtained in the
reverse acquisition completed in June 2019. There were no revenues
for the six months ended March 31, 2019.
Total operating expenses increased by $1.89 million to $2.84
million for the six months ended March 31, 2020 compared to $0.95
million for the same period last year:
of sales and services was $0.01 million for the six months ended
March 31, 2020, reflecting the sales of product inventory obtained
in the reverse acquisition. There were no product sales in the same
and development expenses increased by $0.66 million to $1.03
million for the six months ended March 31, 2020 compared to $0.37
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 increased salary and related personnel
and administrative expenses increased by $1.22 million to $1.80
million for the six months ended March 31, 2020 compared to $0.58
million for the same period last year. The increase was primarily
due to increased salary and related personnel expenses, increased
legal and professional fees, and public company
For the six months ended March 31, 2020, Edesa reported a net loss
of $2.58 million, or $0.32 per basic share, compared to a net loss
of $0.89 million, or $0.28 per basic share, for the six months
ended March 31, 2019.
* 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 March 31, 2020, the company had working capital of $6.85
million. Cash and cash equivalents totaled $6.99