August 14, 2018
ProMetic Life Sciences Inc.
Q2/18: still awaiting additional details on clinical + corporate progress
Impact: Neutral
First impression
Q2/18 revenues of $20.2MM vs. our $18.2MM forecast. ProMetic reported Q2/18 revenues of $20.2MM, above our $18.2MM forecast (FactSet: $5.5MM, one estimate). As disclosed previously, the quarter benefited from the $14.0MM sale of excess plasma inventory. Overall, our focus remains on the company's ability to secure a licensing deal in either its small molecule or plasma-derived business.
Cash guidance largely reiterated. ProMetic's operating expenses totaled ~$30.9MM (R&D $24.0MM, SG&A $6.9MM), above our ~$29.3M forecast (R&D $21.4MM, SG&A $7.9MM). Additionally, the company reiterated the cash usage guidance that it provided earlier this year (guided toward H2/18 cash used in operations of $52.0–55.0MM in late June). While PLI appears to have made some progress in reducing expenses, the cash burn overhang will likely remain until new financing is secured.
What we will look for on the conference call. In our view, the two key areas of focus on the call will be: (i) progress on licensing deals; and (ii) updated timelines for Ryplazim approval. Details on the former were rather scarce, with the company indicating that potential partnership discussions for PBI-4050 and Ryplazim remain ongoing. For the Ryplazim BLA, ProMetic noted that following its submission to the FDA relating to the required additional in-process controls and assays, a review meeting in September with the agency will be used to confirm the remaining work to be completed and associated timelines. On the call, we expect that management will be questioned on the timelines for both of these matters, although note that investors hoping for specifics may be left disappointed.
Conference call Wednesday, August 15, at 11 a.m. ET. Dial-in: 647-427-7450 or 1-888-231-8191 (webcast link here).