CASI Pharmaceuticals Inc. (NASDAQ:CASI)

CASI Pharmaceuticals Inc. (NASDAQ:CASI) Reports Narrow Q3 Net Loss

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.

CASI Pharmaceuticals Inc. (NASDAQ:CASI)

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.

Public Offering

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.

Don’t miss out! Stay informed on $CASI and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

CASI Pharmaceuticals Inc. (NASDAQ:CASI)

CASI Pharmaceuticals Inc. (NASDAQ:CASI) Falls After Pricing

CASI Pharmaceuticals Inc. (NASDAQ:CASI)

CASI Pharmaceuticals Inc. (NASDAQ:CASI) shares fell 25.3% after the biopharmaceutical company announced the signing of definitive agreements with certain institutional and accredited investors. Pursuant to the agreement, the company will sell an aggregate of 7.95 million shares of its common stock and warrants for the purchase of additional shares.

CASI Pharmaceuticals Inc. (NASDAQ:CASI)

Public Offering Reaction

Investors reacted to the news by sending the stock lower as the issuance of shares will result in further dilution of the stock. Last week’s sell-off is already threatening to reverse a bullish run that had pushed the stock to a 52-week high of $4.84 a share. Over the past few days, the stock has shed more than 40% in market value. However, it is still up by more than 100% for the year.

The biopharmaceutical company is expecting approximately $23.8 million from the registered direct offering. Net proceeds from the offering are to be used to support business development projects.

In addition, CASI Pharmaceuticals Inc. (NASDAQ:CASI) Chairman Dr. Wei-Wu He has echoed his support for China’s FDA push to accept data from clinical trials outside China. According to the executive, the move will accelerate approval of imported drugs.

“We believe this could potentially accelerate our pipeline of U.S. approved drugs that are currently under China FDA review, namely EVOMELA®, which has been granted priority review; and MARQIBO® and ZEVALIN®. We look forward to accelerating these medicines to the second largest pharmaceutical market, and will continue to add on to our pipeline,” said Mr. He.

CFDA Import Drug Accelerated Approval

China’s FDA has already granted a priority review for EVOMELA, for the treatment of multiple myeloma, which is classified as a rare disease in the country. The agency is also reviewing an application for approval of MARQIBO for the treatment of adult patients with Philadelphia chromosome negative lymphoblastic leukemia. A review of the drug is set to be complete in the next four to six weeks.

The CFDA is also reviewing, CASI Pharmaceuticals Inc. (NASDAQ:CASI) import drug clinical trial application (CTA) for ZEVALIN. The intravenous injection is indicated for the reduction of the number of B-cells in the blood and for the treatment of non-Hodgkin’s lymphoma (NHL).

“[..] it also is a positive signal from the CFDA to accelerate the import drug registration process for U.S. FDA approved drugs in order to address the significant unmet medical needs of the Chinese population in an accelerated time frame,” said CEO, Ken Ren.

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.

Don’t miss out! Stay informed on $CASI Symbol and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.