Macrocure Ltd. Reports Third Quarter 2015 Financial Results
November 17 2015 - 4:05PM
Macrocure Ltd. ("Macrocure" or the "Company") (NASDAQ:MCUR), today
provided a corporate update and reported financial results for the
third quarter and nine months ended September 30, 2015.
"As previously stated, we remain focused on the interests of all
stakeholders of Macrocure and are committed to maximizing the value
of the Company. Following our disappointing clinical announcements
regarding our Phase III studies for CureXcell on August 19 and
October 27, we are analyzing data from both Phase III studies in
VLU and DFU to understand why these trials did not meet their study
endpoints and to determine if there is continuing value to the
underlying technology. As this analysis proceeds, we have also
commenced a process to review all strategic alternatives for the
Company. Finally as we assess our alternatives, we continue to
focus on managing and conserving our existing cash through cost
reduction and restructuring initiatives currently underway
including the reduction of approximately two thirds of our staff,"
stated Nissim Mashiach, President and Chief Executive Officer of
Macrocure.
Financial Results for the Third Quarter Ended September
30, 2015
Research and development expenses for the third quarter of 2015
were $4.2 million, compared with $3.9 million for the third quarter
of 2014. This increase was primarily due to total clinical trial
expenses for our MC-102 and MC-105 Phase III clinical studies.
General and administrative expenses for the third quarter of
2015 were $1.6 million, compared with $1.7 million for the third
quarter of 2014. This decrease was primarily due to reductions in
payroll related and non-cash stock-based compensation expenses.
For the third quarter of 2015, the Company posted a net loss of
$5.8 million, or $0.32 loss per share, compared with a net loss of
$10.1 million, or $0.70 loss per share, in the third quarter of
2014.
Financial Results for the Nine Months Ended September
30, 2015
Research and development expenses for the nine months ended
September 30, 2015 were $14.3 million, compared with $9.9 million
for the comparable period in 2014. This increase was primarily due
to increases in our total Phase III clinical trial expenses.
General and administrative expenses for nine months ended
September 30, 2015 were $5.1 million, compared with $3.5 million
for the comparable period in 2014. This increase was primarily due
to elevated payroll, stock-based compensation for existing and new
employees and senior staff recruiting expenses, as well as
increased professional expenses and customary costs associated with
being a publicly-traded company.
For the nine months ended September 30, 2015, the Company posted
a net loss of $19.4 million, or $1.06 loss per share, compared with
a net loss of $17.9 million, or $1.84 loss per share, in the
comparable period in 2014.
Balance Sheet Information and Other Items
As of September 30, 2015, cash and cash equivalents, including
short-term investments, were $30.3 million. The Company has no debt
outstanding.
As of September 30, 2015, the Company had 16,710,181 ordinary
shares outstanding. That figure excludes an additional 1,332,804
ordinary shares issuable upon exercise of warrants at an exercise
price of NIS 0.01 per share that were outstanding as of that
date.
Guidance
Given the Company's recently announced clinical trial results,
previous financial guidance, updated as recently as the second
quarter financial results reported on August 4, 2015, is
withdrawn.
About Macrocure Ltd.
Macrocure Ltd. is a clinical-stage biotechnology company focused
on developing a novel therapeutic platform to address chronic and
hard-to-heal wounds, such as diabetic foot ulcers and venous leg
ulcers.
For more information, please visit: www.macrocure.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the US Securities Exchange Act of 1934, as
amended, and the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts, such as
statements regarding assumptions and results related to financial
results forecasts, commercial results, clinical trials and
regulatory authorizations. Forward-looking statements are based on
Macrocure's current knowledge and its present beliefs and
expectations regarding possible future events and are subject to
risks, uncertainties and assumptions. Actual results and the timing
of events could differ materially from those anticipated in these
forward-looking statements as a result of several factors
including, but not limited to, unexpected results of clinical
trials, delays or denial in regulatory approval process or
additional competition in the market, including those risks
discussed under the heading "Risk Factors" in Macrocure's Annual
Report on Form 20-F for the year ended December 31, 2014 filed with
the Securities and Exchange Commission. The forward-looking
statements made herein speak only as of the date of this
announcement and Macrocure undertakes no obligation to update
publicly such forward-looking statements to reflect subsequent
events or circumstances, except as otherwise required by law.
Unaudited Condensed
Interim Consolidated Statements of Financial Position |
|
|
|
|
As of |
As of |
U.S. dollars in
thousands |
30-Sep |
31-Dec |
|
2015 |
2014 |
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
Cash and cash equivalents |
11,515 |
10,868 |
Short term investments |
18,769 |
35,313 |
Accounts receivable |
504 |
536 |
Total current assets |
30,788 |
46,717 |
|
|
|
Non-current assets |
|
|
Property and equipment, net |
640 |
451 |
Intangible assets, net |
-- |
276 |
Deposits |
5 |
1,255 |
Total non-current assets |
645 |
1,982 |
|
|
|
Total assets |
31,433 |
48,699 |
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
Current liabilities |
|
|
Trade and other payables |
2,739 |
2,488 |
Total liabilities |
2,739 |
2,488 |
|
|
|
Shareholders' equity |
|
|
Ordinary shares of NIS 0.01 par value |
46 |
45 |
Share premium |
100,390 |
95,941 |
Capital reserve |
8,027 |
6,167 |
Warrants held by shareholders |
7,835 |
12,256 |
Accumulated deficit |
(87,604) |
(68,198) |
Total shareholders' equity |
28,694 |
46,211 |
|
|
|
Total liabilities and shareholders'
equity |
31,433 |
48,699 |
|
|
|
Unaudited Condensed
Interim Consolidated Statements of Loss |
|
|
Nine months
ended |
Three months
ended |
U.S. dollars in
thousands |
September
30, |
September
30, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Research and development expenses, net |
14,257 |
9,863 |
4,186 |
3,946 |
General and administrative expenses |
5,116 |
3,512 |
1,572 |
1,689 |
Operating Loss |
(19,373) |
(13,375) |
(5,758) |
(5,635) |
|
|
|
|
|
Finance income (expense), net |
119 |
(4,410) |
(6) |
(4,421) |
|
|
|
|
|
Loss before income tax |
(19,254) |
(17,785) |
(5,764) |
(10,056) |
Taxes on income |
(152) |
(78) |
(65) |
-- |
|
|
|
|
|
Loss for the period |
(19,406) |
(17,863) |
(5,829) |
(10,056) |
|
|
|
|
|
Other Comprehensive
income: |
|
|
|
|
Net change in fair value of available for
sale financial assets |
26 |
-- |
11 |
-- |
|
|
|
|
|
Total comprehensive loss for the
year |
(19,380) |
(17,863) |
(5,818) |
(10,056) |
|
|
|
|
|
Loss per share - basic and
diluted (in U.S. dollars) (*) |
(1.06) |
(1.84) |
(0.32) |
(0.70) |
|
|
|
|
|
Weighted average number of Ordinary
shares outstanding |
18,248,068 |
9,731,657 |
18,248,923 |
14,306,886 |
|
|
|
|
|
Unaudited Condensed
Interim Consolidated Statements of Cash Flows |
|
|
|
|
|
|
Nine months
ended |
Three months
ended |
U.S. dollars in
thousands |
September
30, |
September
30, |
|
2015 |
2014 |
2015 |
2014 |
Cash flows from operating
activities: |
|
|
|
|
Loss for the period |
(19,406) |
(17,863) |
(5,829) |
(10,056) |
Adjustments: |
|
|
|
|
Depreciation |
74 |
82 |
26 |
25 |
Amortization |
276 |
414 |
-- |
138 |
Financing income, net |
(119) |
4,410 |
6 |
4,421 |
Taxes on income |
152 |
78 |
65 |
-- |
Share based compensation |
1,847 |
1,222 |
586 |
655 |
|
2,230 |
6,206 |
683 |
5,239 |
Changes in operating assets and liability
items: |
|
|
|
|
Decrease (increase) in accounts
receivable |
(33) |
(606) |
(213) |
1,297 |
Increase (decrease) in trade and other
payables |
259 |
33 |
(133) |
(1,156) |
|
226 |
(573) |
(346) |
141 |
Income tax paid |
(87) |
(152) |
(11) |
-- |
Interest received |
391 |
14 |
141 |
6 |
|
|
|
|
|
Net cash used in operating
activities |
(16,646) |
(12,368) |
(5,362) |
(4,670) |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
Purchase of property and equipment |
(263) |
(226) |
(206) |
(120) |
Decrease in long terms deposits |
4 |
7 |
1 |
1 |
Investment in short term deposits |
11,947 |
(7,500) |
2,315 |
(7,500) |
Investment in Available for Sale financial
assets |
(418) |
-- |
-- |
-- |
Repayment of available for sale financial
assets |
6,001 |
-- |
5,136 |
-- |
|
|
|
|
|
Net cash used in investing
activities |
17,271 |
(7,719) |
7,246 |
(7,619) |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
Proceeds from issuance of shares, net of
issuance costs |
-- |
46,689 |
-- |
46,689 |
Exercise of warrants |
16 |
200 |
16 |
200 |
Net cash provided by financing
activities |
16 |
46,889 |
16 |
46,889 |
Net increase (decrease) in cash and
cash equivalents |
641 |
26,802 |
1,900 |
34,600 |
Effect of exchange rate changes on
cash and cash equivalents |
6 |
(12) |
27 |
(6) |
Cash and cash equivalents at
beginning of the period |
10,868 |
18,995 |
9,588 |
11,191 |
Cash and cash equivalents at end of
the period |
11,515 |
45,785 |
11,515 |
45,785 |
|
|
|
|
|
CONTACT: For Investors:
David Carey
Lazar Partners Ltd.
dcarey@lazarpartners.com
(212) 867-1762
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