Edesa Biotech Releases Q3 2024 Results

TORONTO, Aug. 09, 2024 — Edesa Biotech, Inc. (Nasdaq: EDSA), a clinical-stage biopharmaceutical organization focused on developing treatments for immuno-inflammatory conditions, has disclosed its financial performance for the three and nine months concluding on June 30, 2024. Additionally, the company provided an overview of its ongoing projects and future plans.

In the recent quarter, Edesa’s anti-TLR4 drug candidate, EB05 (paridiprubart), was chosen by the U.S. Department of Health and Human Services for a government-funded study. This study aims to explore new host-directed therapies for treating Acute Respiratory Distress Syndrome (ARDS). Edesa is supporting this initiative by supplying the drug and offering technical assistance at its own cost. The company also revealed its intention to continue advancing its vitiligo and pulmonary fibrosis programs using its internal resources. This includes the preparation to submit an Investigational New Drug application to the U.S. Food and Drug Administration for a Phase 2 trial of its anti-CXCL10 technology targeting moderate-to-severe vitiligo patients.

Dr. Par Nijhawan, Chief Executive Officer of Edesa Biotech, commented on the potential value-creation opportunities the government-funded ARDS study could bring to the company. He emphasized that this initiative solidifies their commitment to TLR4 technology, enabling them to focus more on their other development programs.

Chief Financial Officer Stephen Lemieux reported that the financial results for the three and nine months ended June 30, 2024, were consistent with the management's projections. Lemieux highlighted that these results reflect the company's careful management of working capital and strategic progression of its product pipeline, thereby strengthening its position for future financing opportunities.

Financial Performance Overview

For the three months ending June 30, 2024:
- Total operating expenses decreased to $1.9 million from $2.1 million in the same period last year.
- Research and development costs dropped to $0.9 million from $1.0 million due to reduced external research expenses related to the ongoing Phase 3 ARDS study and a completed dermatitis study. These reductions were slightly offset by increased manufacturing costs for paridiprubart.
- General and administrative expenses remained steady at $1.0 million.
- Total other income rose to $264,000 from $79,000, primarily due to increased funding from the Canadian government's Strategic Innovation Fund.
- The net loss for the quarter was $1.7 million, or $0.52 per common share, compared to a net loss of $2.0 million, or $0.68 per common share, in the same period the previous year.

For the nine months ending June 30, 2024:
- Total operating expenses declined to $6.0 million from $6.9 million in the same period last year.
- Research and development costs fell to $2.8 million from $3.8 million, mainly due to reduced external research expenses and lower non-cash share-based compensation and labor costs.
- General and administrative expenses increased slightly to $3.2 million from $3.0 million due to higher professional service fees, partially counterbalanced by decreased non-cash share-based compensation.
- Total other income increased to $0.8 million from $0.2 million, driven by higher reimbursement funding from the Canadian government's Strategic Innovation Fund.
- The net loss for the nine-month period was $5.2 million, or $1.64 per common share, compared to $6.7 million, or $2.37 per common share, in the same period the previous year.

Working Capital

As of June 30, 2024, Edesa had $2.0 million in cash and cash equivalents and $0.7 million in working capital. Post the quarter-end, the company received an additional $0.3 million in reimbursement funding from the Canadian government's Strategic Innovation Fund. The company has yet to utilize any funds from a $10.0 million revolving credit agreement with its founder and CEO.

Upcoming Events

Edesa's management plans to participate in several conferences later this year, including the Canaccord 44th Annual Growth Conference in August, the H.C. Wainwright 26th Annual Global Investment Conference in September, and the Dermatology Drug Development Summit in November.

About Edesa Biotech, Inc.

Edesa Biotech, Inc. is engaged in developing novel treatments for inflammatory and immune-related diseases. The company's leading drug candidate, EB05 (paridiprubart), is a monoclonal antibody being evaluated in a Phase 3 study for ARDS. EB05 is also part of a U.S. government-funded study on host-directed therapies. Additionally, Edesa is progressing with a Phase 2 trial of EB06 (anti-CXCL10) for treating vitiligo, and developing EB01 (1.0% daniluromer cream) for chronic Allergic Contact Dermatitis (ACD).

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