CASI Pharmaceuticals Inc. (NASDAQ:CASI)
Shares of CASI Pharmaceuticals Inc. (NASDAQ:CASI) gained 8.37% after the biopharmaceutical company reported a narrower than expected net loss for the three and nine months ended September 30, 2017. In addition, the company was able to strengthen its balance sheet through the issuance of shares to certain investors.
Declining Net Loss
Net loss for the third quarter came in at ($1.6) million or (-$0.03) a share, compared to a net loss of (-$1.7) million reported last year. For the first nine months of the year, CASI Pharmaceuticals net loss totaled (-$5.7) million, compared to a net loss of (-$6.8) million reported last year.
CASI Pharmaceuticals Inc. (NASDAQ:CASI) attributes the decline in net loss to a decrease in non-cash compensation expense associated with stock option issuance. Clinical expenses associated with the development of the company’s lead candidate drug ENMD-2076 were also down in the quarter.
“I am pleased with our third quarter financial results. In October, we announced a $23.8 million registered direct offering, funds raised from which will be used to advance our internal pipeline and support our business development in-license activities,” said CEO Ken K. Ren.
CASI Stock Performance
Investors reacted to the declining net loss by pushing the stock up the chart. The stock is currently trading in an uptrend as it makes a push for its 52-week high of $3.18 a share. CASI Pharmaceuticals is up by more than 100% for the year, as it continues to outperform the overall industry.
Data compiled by Zacks Investment Research indicates that the stock is currently rated as a ‘strong buy’ by one analyst firm. Analysts are forecasting a 14.71% year over year increase in earnings this year compared to last year. However, the analysts expect a -6.9% earnings growth next year.
Separately, China’s Food and Drug Administration has granted a priority review for CASI Pharmaceuticals Inc. (NASDAQ:CASI) clinical trial application for EVOMELA for injection. Depending on the review, the company could make a clinical trial application by the end of the year.
In September, CASI Pharmaceuticals Inc. (NASDAQ:CASI) entered into agreements with certain institutional and accredited investors for the purchase of approximately $23.8 million securities in a direct offering. The company expects net proceeds of $23.3 million that is to be used to support business development activities which includes advancing clinical trial programs.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.