Biotech Values

[DewDiligence]

ADXS—FY3Q18* cash burn down sharply compared to prior quarters:

https://finance.yahoo.com/news/advaxis-announces-pricing-public-offering-132500354.html

The net loss for the third quarter ended July 31, 2018 was $14.0 million or $0.27 per share. This compares with a net loss for the third quarter of fiscal year 2017 of $32.6 million or $0.80 per share. The $18.6 million reduction in the net loss compared to prior year was primarily a result of the significant reduction in spending in research, development and administrative areas.

Research and development expenses for the third quarter of fiscal year 2018 were $10.8 million, compared with $17.8 million for the third quarter of fiscal year 2017. The decrease is primarily attributable to a decrease in laboratory costs, drug manufacturing process validation and drug stability studies supporting the MAA, which we withdrew in July 2018.

General and administrative expenses for the third quarter of fiscal year 2018 were $4.5 million, compared with $18.0 million for the third quarter of fiscal year 2017. The decrease is primarily attributable to a decrease in stock-based compensation of approximately $11.4 million related to the resignation of the Company’s Chief Financial Officer and Chief Executive Officer in April 2018 and July 2017, respectively, two Board members who did not seek re-election in March 2018, a reduction in headcount and the elimination of stock-based compensation paid to consultants.

This belt-tightening should have started much sooner, of course.

As previously reported, the 7/31/18 actual cash balance was $40.4M; the 7/31/18 pro forma cash balance taking into account the public offering announced last week is $59.2M (#msg-143423885).

*Period ending 7/31/18.