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Aug. 12, 2022, 4:31 p.m. EDT

Edesa Biotech Reports Fiscal 3rd Quarter 2022 Results

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  • Phase 3 ARDS drug study in hospitalized Covid-19 patients expanded

  • Company reaffirms guidance on completion of Phase 2b dermatology drug study

TORONTO, ON / ACCESSWIRE / August 12, 2022 / Edesa Biotech, Inc. /zigman2/quotes/200172674/composite EDSA +3.62% , a clinical-stage biopharmaceutical company focused on inflammatory and immune-related diseases, today reported financial results for the three and nine months ended June 30, 2022 and provided an update on its business.

During the quarter, the company expanded an international Phase 3 study of its critical care drug candidate in hospitalized Covid-19 patients with Acute Respiratory Distress Syndrome (ARDS). The company is now recruiting a second cohort of subjects in parallel to its critically severe cohort. For its dermatology drug candidate, Edesa reported that recruitment in its Phase 2b clinical study in chronic Allergic Contact Dermatitis (ACD) has continued at a robust pace, and the company expects to randomize all planned 210 subjects by the fourth calendar quarter of 2022, as previously guided, with initial topline data available as early as the first calendar quarter of 2023.

"We continue to be excited about the momentum we demonstrated in the first nine months of the fiscal year. Our focus is squarely on accelerating our two active clinical programs toward full enrollment and topline data, increasing our business development activities, applying for non-dilutive grant funding, where applicable, and, as we approach our initial clinical targets, setting our sights on adjacent and secondary disease indications for our current clinical assets," said Par Nijhawan, MD, Chief Executive Officer of Edesa Biotech.

Edesa's Chief Financial Officer Kathi Niffenegger reported that financial results for the quarter and nine months ended June 30, 2022 reflected reduced operational expenditures compared to prior year periods and a continued the trend of prudent management of working capital.

"Operational expenditures for the quarter and the first nine months of fiscal 2022 were in line with management's expectations and benefitted from our continued focus on core development and commercialization activities," she said.

Financial Results for the Three Months Ended June 30, 2022

Total operating expenses decreased by $0.27 million to $5.80 million for the three months ended June 30, 2022 compared to $6.07 million for the same period last year:

  • Research and development expenses increased by $0.08 million to $4.55 million for the three months ended June 30, 2022 compared to $4.46 million for the same period last year primarily due to a contractual payment for bulk drug product of EB05, which was substantially offset by decreased external research expenses related to the company's ongoing clinical studies and drug manufacturing.

  • General and administrative expenses decreased by $0.36 million to $1.25 million for the three months ended June 30, 2022 compared to $1.61 million for the same period last year primarily due to a decrease in noncash share-based compensation.

Total other income decreased by $1.30 million to $0.01 million for the three months ended June 30, 2022 compared to $1.31 million for the same period last year primarily due to a decrease in grant income associated with the completion of clinical study activities under Edesa's federal reimbursement grant with the Canadian government's Strategic Innovation Fund.

For the quarter ended June 30, 2022, Edesa reported a net loss of $5.79 million, or $0.37 per common share, compared to a net loss of $4.76 million, or $0.36 per common share, for the three months ended June 30, 2021.

Financial Results for the Nine Months Ended June 30, 2022

Total operating expenses decreased by $2.67 million to $15.53 million for the nine months ended June 30, 2022 compared to $18.20 million for the same period last year:

  • Research and development expenses decreased by $2.28 million to $11.54 million for the nine months ended June 30, 2022 compared to $13.82 million for the same period last year primarily due to decreased milestone payments, which were partially offset by higher external research expenses related to the company's ongoing clinical studies and increased personnel expenses.

  • General and administrative expenses decreased by $0.39 million to $3.99 million for the nine months ended June 30, 2022 compared to $4.38 million for the same period last year primarily due to a decrease in noncash share-based compensation.

Total other income decreased by $7.74 million to $0.80 million for the nine months ended June 30, 2022 compared to $8.54 million for the same period last year primarily due to a decrease in grant income associated with the completion of clinical study activities under Edesa's federal reimbursement grant with the Canadian government's Strategic Innovation Fund.

For the nine months ended June 30, 2022, Edesa reported a net loss of $14.74 million, or $1.04 per common share, compared to a net loss of $9.66 million, or $0.83 per common share, for the nine months ended June 30, 2021.

Working Capital

At June 30, 2022, Edesa had cash and cash equivalents of $12.81 million and working capital of $9.52 million.

Calendar

/zigman2/quotes/200172674/composite
US : U.S.: Nasdaq
$ 0.92
+0.03 +3.62%
Volume: 106,105
Nov. 30, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$13.76 million
Rev. per Employee
N/A
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