NEXL, which had been a beneficiary of Acqua Wellington's largesse in January, is unable to use it. Details in this quarterly:
>>IRVINE, Calif., May 15, 2001 (BW HealthWire) -- Nexell Therapeutics Inc. (Nasdaq: NEXL chart, msgs) announced today its results for the quarter ended March 31, 2001.
First Quarter 2001 Results
For the quarter ended March 31, 2001, total revenues were $4.8 million, compared to $4.8 million in the first quarter of 2000. Revenues in both quarters included sales of raw material to one of Nexell's reagent kit component manufacturers that are sporadic and potentially non-recurring.
Gross profit on sales was $2.1 million, or 44 percent, on first quarter 2001 sales, compared to $2.2 million, or 47 percent in 2000. This decline is due to an increase in the cost of sales in the current year resulting from the initiation on January 1, 2001, of royalty payments to Baxter Healthcare Corporation on net sales of certain finished goods.
Total operating expenses in the first quarter 2001 were $8.4 million, $1.7 million lower than in the first quarter of 2000, reflecting focused expense reductions resulting from the implementation of the Company's strategic plan in the fourth quarter of 2000. Consequently, the net loss for the period decreased $1.6 million or 21% to $6.1 million from $7.7 million in the first quarter of 2000. The net loss applicable to common stock for the first quarter of 2001 was $7.8 million, or $0.39 per share, versus a net loss applicable to common stock of $9.3 million, or $0.51 per share, in the same period of 2000.
"We will continue to manage our business aggressively to improve bottom line performance as we work towards the high-value therapeutic products in our development pipeline," said William A. Albright, Jr., President and Chief Executive Officer.
Cash and short term investments at March 31, 2001, were $11.8 million versus $12.1 million at December 31, 2000. The decrease reflects cash used in the operations of the Company partially offset by net cash provided by financing activities of $3.7 million. Weighted average shares outstanding for the three-month period ended March 31, 2001, were 20.0 million versus 18.3 million for the comparable 2000 period.
Financing Activities
In January 2001, Nexell completed an equity financing facility with Acqua Wellington North American Equities Fund that provided the Company with up to $25 million through discretionary sales of common stock from a shelf registration. Since that time, Nexell has drawn approximately $4 million to supplement operating capital. However, unfavorable market conditions during the first quarter of 2001 impacted the Company's market capitalization, rendering the Acqua Wellington facility and the related Securities and Exchange Commission registration statement unavailable. As a result, Nexell has terminated its agreement with Acqua Wellington. The Company is currently exploring financing alternatives, including discussions with its largest shareholder and principal supplier, Baxter Healthcare Corporation (NYSE: BAX chart, msgs).
"We believe Nexell's cell processing technology will play an increasingly important role in emerging clinical therapies," said Victor W. Schmitt, President, Venture Management, Baxter Healthcare Corporation, and Nexell Board member. "Baxter is actively working with Nexell to define financing alternatives that will help ensure Nexell can reach the next stage in its business model -- providing therapeutic cell products with proven clinical efficacy for significant human diseases."
Other First Quarter Milestones
In March 2001, William A. Albright, Jr., was named Chief Executive Officer, replacing Richard L. Dunning, who had served as CEO since 1996. Mr. Dunning remains Chairman of the Board. Mr. Albright also assumed a seat on Nexell's Board of Directors.
Also in March, Nexell announced that it had received a non-exclusive license from Epimmune Inc. (Nasdaq: EPMN chart, msgs) to certain cancer antigens for use in Nexell's dendritic cell vaccine development program.<<
Is NEXL at the stage in which any financing is seen as helpful? Less than 2 q's worth of cash, but Baxter connections may save the day. But I think NEXL will head for the middle 1s before that happens.<<
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Cheers, Tuck |
