CASI Pharmaceuticals, Inc. (Nasdaq: CASI), a U.S. pharmaceutical company with a platform to develop and accelerate the launch of innovative therapeutics and pharmaceutical products in China, the U.S., and throughout the world, today reported financial results for the 1Q 2k19 and provided a review of recent accomplishments and anticipated upcoming milestones.
Financial Results for the Quarter ended March 31, 2k19
Cash Position: As of March 31, 2k19, CASI had cash and cash equivalents of $99.7 00M.
R&D Expenses: R&D expenses for the quarter ended March 31, 2k19 were $2.600 M compared to $1.7 M in 2k18, an increase of $0.900 M. The increase in R&D expenses primarily reflects costs associated with regulatory, consulting and manufacturing related services, primarily associated with our acquired ANDAs in 2k18, as well as an increase in facility costs due to new lease space in China, as well as an increase in personnel costs due to growth in the number of employees.
G&A Expenses: G&A expenses for the quarter ended March 31, 2k19 were $5.700 M compared to $1.3 M in 2k18. The increase of $4.4 00M in G&A over the prior year primarily reflects an increase of $1.6 M in non-cash stock compensation expense largely attributed to stock options issued to the Company’s Chairman and also the President of CASI China, an increase in salary, benefits and recruitment expense, as well as facilities costs primarily in China, related to sales and marketing efforts to prepare for the anticipated launch of the Company’s first commercial product in China, as well as other G&A functions. There were also increased costs associated with professional services fees, including audit and legal services during the 2k19 period.
Net Loss: The Company reported a net loss of ($8.200 M), or ($0.0900) per share, for the quarter ended March 31, 2k19. This compares with a net loss of ($3.600 M), or ($0.0500) per share for the 1Q of 2k18. The larger net loss for both periods is primarily due to the increase in non-cash stock-based compensation expense during the 2k19 period, costs associated with the manufacturing and regulatory support for our ANDA portfolio, and increased costs associated with G&A functions, including employment costs for sales and marketing efforts, as well as increased facilities cost in China and higher professional service fees.