StemCells reported more than $12 million in net losses for the second quarter of 2014, significantly higher than the $5.8 million net loss reported last year.
Around 70 percent of the net loss was associated with a non-cash expense related to changes in the fair value of the company's warrant liability, driven by changes in stock price. However, the company did experience several highlights with new testing and trials during the second quarter for various specialties, including spinal cord injury.
"The data [from our ongoing Phase I/II spinal cord injury trial] continue to support the earlier findings demonstrating a favorable safety profile and improvement in sensory function in half of the subjects," said StemCells CEO Martin McGlynn. "Based upon these results we plan to initiate two Phase II controlled proof of concept studies later this year, one in spinal cord injury and the other in dry age-related macular degeneration. We are making great strides in our clinical efforts and I am excited about the potential our platform technology continues to show in these early clinical trials."
Here are five things to know about the company's financial report and study results in the second quarter:
1. There are 12 subjects currently enrolled in the spinal cord injury multi-national, open-label, phase I/II trial for the HuCNS-SC cells. The final results from the study are expected to be released in mid-2015.
2. Updates from the trial were presented at the American Spinal Injury Association annual meeting showing significant post-transplant gains in sensory function in two patients; two additional patients have now exhibited similar gains.
3. The initial results confirm a favorable safety profile for the cells and surgical implant procedure.
4. The company's total second quarter revenue was around $242,000, compared with $281,000 for the same period last year. The decrease was primarily due to lower revenue from the company's SC Proven product sales.
5. StemCells reported operating expenses at $8.2 million, around $2 million more than the same period last year. The on-going preparation for the HuCNS-SC cells study for treating spinal cord injury was a major contributor to the operating expense increase.