Kalytera Therapeutics, Inc. (TSX VENTURE:KALY) (KALTF) (the “Company” or “Kalytera”) today reported financial results for the first quarter of 2018. (All dollars U.S. unless otherwise noted.)
The Company recorded a net loss of approximately $1.9 million ($0.01 per Common Share) in the first quarter of 2018, compared with a net loss of approximately $1.6 million ($0.02 per Common Share) in the first quarter of 2017. The increase of approximately $295,000 in net loss was attributable mainly to an increase in research and development expenditures of approximately $883,000; an increase of approximately $4.2 million in the fair-value recognized for contingent liabilities related to the Company’s acquisition of Talent Biotechs, Ltd. in 2017; and an increase of approximately $210,000 in other financial expenses, offset by approximately $4.6 million of financial income recorded in the quarter in connection with equity and debt instruments issued to investors in December 2017; and a decrease of approximately $411,000 in general and administration expenses.
Research and development expenses increased to approximately $1.3 million in the first quarter of 2018 from $404,000 in the first quarter of 2017, due primarily to an increase in subcontracted research and development costs; costs incurred relating to the advancement of the Company’s patented cannabidiol (“CBD”) drug into a Phase 2 clinical study in prevention of graft versus host disease (“GVHD”); and the addition of research and development employees in 2018.
General and administrative expenses decreased in the first quarter of 2018 to approximately $798,000 from approximately $1.2 million in the first quarter of 2017 due to reductions in consulting and management fees, legal and professional expenses, office and other expenses and travel. These decreases resulted primarily from a change in the Company’s operations as the Company is relying less on external consultants and more on in-house personnel.
As of March 31, 2018, the Company had cash and cash equivalents of approximately $1.9 million, which is sufficient to fund operating costs through year-end 2018. However, in order to fund other costs including the $4 million milestone payments currently due to former shareholders of Talent Biotechs, Ltd., the Company plans to raise additional capital to fund the milestone payments and its working capital requirements beyond year-end 2018, including expenses for the clinical development of its lead product program, CBD in the treatment and prevention of GVHD.
Kalytera Therapeutics, Inc. is pioneering the development of CBD therapeutics. Through its proven leadership, drug development expertise, and intellectual property portfolio, Kalytera seeks to establish a leading position in the development of CBD medicines for a range of important unmet medical needs, with an initial focus on GVHD and treatment of acute and chronic pain.
President and CEO
Phone: (888) 861-2008
Colwell Capital Corp.
Phone: (403) 561-8989
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This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation in respect of its product candidate pipeline, planned clinical trials, regulatory approval prospects, intellectual property objectives and other statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that future clinical studies may not proceed as expected or may produce unfavourable results. Kalytera undertakes no obligation to comment on analyses, expectations or statements made by third-parties, its securities, or financial or operating results (as applicable). Although Kalytera believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Kalytera’s control. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Kalytera disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.