Athersys (ATHX) Misses Q2 EPS by 2c

Athersys (NASDAQ: ATHX) reported Q2 EPS of ($0.10), $0.02 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $100 thousand versus the consensus estimate of $1.06 million.

Highlights of the second quarter of 2020 and recent events include:

• Initiated and advanced enrollment in the Phase 2/3 COVID-19 induced acute respiratory distress syndrome (ARDS) clinical trial (the MACOVIA study) and currently evaluating the safety, tolerability and dose levels of MultiStem® cell therapy in this indication;
• Continued interactions with the Biomedical Advanced Research and Development Authority (BARDA) regarding a potential collaboration;
• HEALIOS K.K. (Healios), our Japanese partner, enrolled the first COVID-19 induced ARDS patient in its ONE-BRIDGE arm and continues to advance this study and the TREASURE stroke study, both studies expected to complete enrollment in Q4 of 2020;
• Following the authorization from the Food and Drug Administration (FDA) and the Institutional Review Board (IRB) approval, The University of Texas Health Science Center at Houston (UTHealth) submitted the protocol for the Phase 2 clinical trial evaluating MultiStem Administration for Trauma Related Inflammation and Complications (MATRICS-1) to the Human Research Protection Office (HRPO) for approval to initiate this important trial;
• Advanced our partnering discussions with companies interested in MultiStem commercialization rights in Europe and other regions;
• Participated in several events throughout the second quarter, including the Bank of America Healthcare Conference, the Alliance for Regenerative Medicine webinar, the International Society of Cell & Gene Therapy, and a CEO round table at LifeScience Leader, and participated in several media interviews and podcasts;
• Continued to advance the enrollment of the MASTERS-2 ischemic stroke study despite the impacts of COVID-19;
• New research coverage initiated by covering analysts at Bank of America and SMBC Nikko Securities;
• Advanced manufacturing technical transfer operations and bioreactor scaling to prepare for commercial readiness;
• Successfully attracted new talent and added new employees to the dedicated staff to help meet the corporate goals; including Mr. Ivor Macleod as Chief Financial Officer and Ms. Maia Hansen as Senior Vice President and Head of Operations and Supply Chain;
• Raised gross proceeds of approximately $57.6 million, before deducting the underwriting discount and offering expenses, through an underwritten public offering of 25,587,500 shares of common stock, providing additional working capital for general corporate purposes, including the initiation of the MACOVIA trial, further advancement of process development and manufacturing projects, and other key initiatives;
• Recognized net loss of $18.4 million, or $0.10 net loss per share, for the quarter ended June 30, 2020; and
• Ended the second quarter with $80.7 million of cash and cash equivalents.

For earnings history and earnings-related data on Athersys (ATHX) click here.

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