Delcath Announces First Quarter 2020 Results
May 15 2020 - 6:30AM
Delcath Systems, Inc. (NASDAQ: DCTH), an interventional oncology
company focused on the treatment of rare primary and metastatic
cancers of the liver, announces financial results for the quarter
ended March 31, 2020.
Highlights
- Completed $22.0 million public offering
- Uplisted to the Nasdaq Capital Market
- Completed enrollment of our Registration Pivotal Trial (FOCUS)
investigating Melphalan/HDS in the treatment of patients with
unresectable hepatic-dominant ocular melanoma (mOM)
- Elizabeth Czerepak, Steven Salamon and Gilad Aharon joined our
board of directors
Milestone Expectations
- Topline data from FOCUS registration trial expected before the
end of this year despite COVID-19 impacts
- FDA NDA submission for mOM expected in 2021
“First quarter and year to date, we achieved major
milestones,” commented Jennifer Simpson, PhD., M.S.N., C.R.N.P.,
President & Chief Executive Officer. “During Q1 we completed
patient enrollment in our FOCUS registration trial. We expect
topline data for the FOCUS trial before the end of this year
despite delays resulting from the COVID-19 pandemic.”
Dr. Simpson continued, “Subsequent to the end of the first
quarter, we achieved two significant milestones: completing a $22
million public offering and uplisting to Nasdaq. With our financing
completed, we expect the markets to assess our company on the
fundamentals of our business. We believe we now have the financial
and operational resources to move forward with our development
plans as we seek to maximize shareholder value.”
Dr. Simpson concluded, “Looking ahead, we expect to have
top-line data from our FOCUS trial before the end of 2020 despite
the impact of the COVID-19 pandemic and to advance our second
registration program in Intrahepatic Cholangiocarcinoma. We believe
that focusing on these indications, which are intended for use in
the treatment of cancers that remain unmet medical needs,
represents our best path forward to market.”
First Quarter 2020 Financial Results
Product revenue for the three months ended March 31, 2020 was
approximately $0.2 million, compared to $0.1 million for the prior
year period from our sales of CHEMOSAT procedures in Europe.
Selling, general and administrative expenses were approximately
$2.3 million compared to $2.5 million in the prior year
quarter. Research and development expenses for the first
quarter were $3.0 million compared to $3.3 million in the prior
year quarter. Total operating expenses for the first quarter were
$5.3 million compared with $5.8 million in the prior year
quarter.
We recorded a net loss for the three months ended March 31,
2020, of $7.9 million, compared to a net loss of $7.9 million for
the same period in 2019.
Balance Sheet Highlights
At March 31, 2020 (not including the net proceeds of our recent
public offering), we had cash, cash equivalents and restricted cash
totaling $4.7 million, as compared to cash, cash equivalents and
restricted cash totaling $10.2 million at December 31, 2019 and
$1.3 million at March 31, 2019. During the three months ended March
30, 2020 and March 31, 2019, we used $5.2 million and $2.8 million,
respectively, of cash in our operating activities. We believe our
cash resources, including the net proceeds of the public offering,
are adequate to fund our operating activities into mid-year
2021.
About Delcath System, Inc.
Delcath Systems, Inc. is an interventional oncology company
focused on the treatment of primary and metastatic liver cancers.
Our investigational product – Melphalan Hydrochloride for Injection
for use with the Delcath Hepatic Delivery System (Melphalan/HDS) –
is designed to administer high-dose chemotherapy to the liver while
minimizing systemic exposure and associated side effects. In
addition to the FOCUS Trial, we have initiated a global Phase 3
clinical trial for intrahepatic cholangiocarcinoma (ICC) called The
ALIGN Trial. Melphalan/HDS has not been approved by the U.S. Food
& Drug Administration (FDA) for sale in the U.S. In Europe, our
system is marketed under the trade name Delcath Hepatic CHEMOSAT®
Delivery System for Melphalan (CHEMOSAT) and has been CE Marked and
used at major medical centers to treat a wide range of cancers of
the liver. CHEMOSAT is being marketed under an exclusive licensing
agreement with medac GmbH, a privately held multi-national
pharmaceutical company headquartered in Germany that specializes in
the treatment and diagnosis of oncological, urological and
autoimmune diseases.
Safe Harbor / Forward-Looking Statements
Private Securities Litigation Reform Act of 1995 provides a safe
harbor for forward-looking statements made by the Company or on its
behalf. This news release contains forward-looking statements,
which are subject to certain risks and uncertainties that can cause
actual results to differ materially from those described. Factors
that may cause such differences include, but are not limited to,
uncertainties relating to: the timing and results of the
Company’s clinical trials, including without limitation the
OM and ICC clinical trial programs, and timely enrollment and
treatment of patients in the global Phase 3 OM and ICC clinical
trials and the impact of the COVID-19 pandemic on the enrollment
and completion of our clinical trials; IRB or ethics committee
clearance of the Phase 3 OM and ICC Registration trial
protocols from participating sites and the timing of site
activation and subject enrollment in each trial; the impact of the
presentations at major medical conferences and future clinical
results consistent with the data presented; approval of Individual
Funding Requests for reimbursement of the CHEMOSAT procedure; the
impact, if any of ZE reimbursement on potential CHEMOSAT
product use and sales in Germany; clinical adoption, use and
resulting sales, if any, for the CHEMOSAT system to deliver and
filter melphalan in Europe including the key markets of Germany and
the UK; the Company’s ability to successfully commercialize the
Melphalan HDS/CHEMOSAT system and the potential of the Melphalan
HDS/CHEMOSAT system as a treatment for patients with primary and
metastatic disease in the liver; our ability to obtain
reimbursement for the CHEMOSAT system in various markets; approval
of the current or future Melphalan HDS/CHEMOSAT system for delivery
and filtration of melphalan or other chemotherapeutic agents for
various indications in the U.S. and/or in foreign markets; actions
by the FDA or other foreign regulatory agencies; the Company’s
ability to successfully enter into strategic partnership and
distribution arrangements in foreign markets and the timing and
revenue, if any, of the same; uncertainties relating to the timing
and results of research and development projects; and uncertainties
regarding the Company’s ability to obtain financial and other
resources for any research, development, clinical trials and
commercialization activities. These factors, and others, are
discussed from time to time in our filings with the Securities and
Exchange Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update or revise
these forward-looking statements to reflect events or circumstances
after the date they are made.
Contact: Delcath Investor Relations
Email: investorrelations@delcath.com
Hayden IR James Carbonara (646)-755-7412
james@haydenir.com
Brett Maas (646) 536-7331
brett@haydenir.com
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