U.S. Markets closed

Cellular Biomedicine Group Reports Third Quarter of 2019 Financial Results and Business Highlights

NEW YORK and SHANGHAI, Nov. 6, 2019 /PRNewswire/ -- Cellular Biomedicine Group Inc. (CBMG) ("CBMG" or the "Company"), a biopharmaceutical firm engaged in the drug development of immunotherapies for cancer and stem cell therapies for degenerative diseases, today reported its financial results and business highlights for the third quarter of 2019.

Cellular Biomedicine Group logo (PRNewsfoto/Cellular Biomedicine Group)

"During the third quarter of 2019, we made great strides in both corporate and clinical progress. We started our U.S. expansion for research and clinical development in a new 22,000 square foot facility in Rockville, Maryland in October 2019. This milestone will allow us to foster strategic partnerships, develop new innovations and support continued development of CBMG's cell therapy-based immune-oncology assets that have shown promise in early proof-of-concept trials in China," said Tony (Bizuo) Liu, Chief Executive Officer for the Company.

"We also had continued progress on the clinical side, with the initiation of our Phase II clinical trial in China of AlloJoin® therapy for knee osteoarthritis (KOA). Additionally, our autologous stem cell therapy program for KOA, ReJoin®, was accepted by the NMPA in China to begin a Phase II clinical trial. We are excited about our regenerative medicine programs as we are currently the only company that has received two clinical trial acceptances for any stem cell program in China."

Mr. Liu continued, "Presentations of our pre-clinical and clinical data at upcoming medical conferences later this year will demonstrate continued focus on our immune-oncology pipeline and we are proud to provide an update of our commitment to cancer immunotherapy."

Third Quarter 2019 and Other Recent Corporate Developments

  • New facility to expand research and development and to support clinical development in Rockville, MD
  • Initiation of AlloJoin® therapy for multiple-site Knee Osteoarthritis Phase II clinical trial
  • ReJoin® therapy received stem cell drug application acceptance for Phase II clinical trial by NMPA

Upcoming Clinical and Preclinical Presentations:

  • Society of Immunotherapy in Cancer ("SITC") 34th Annual Meeting
    Poster Presentation
    The Next Generation "Off-The-Shelf" Universal CAR For Adoptive Immunotherapy (Abstract ID: P229)
    Friday, November 8, 20197:00 AM8:00 AM ET
    Gaylord National Hotel & Convention Center, National Harbor, MD
  • American Society of Hematology ("ASH") 61st Annual Meeting and Exposition
    Oral Presentation
    Developing a Novel Anti-BCMA CAR-T For Relapsed or Refractory Multiple Myeloma (Submission ID: 125372)
    Saturday, December 7, 20197:45 AM8:00 AM ET
    Orange County Convention Center (OCCC), Orlando, FL

Financial Results for the Third Quarter of 2019

  • Net loss allocable to common stock holders for the quarter and nine months ended September 30, 2019 was $15.9 million and $37.3 million respectively, compared to $12.7 million and $30.4 million for the same periods in 2018.
  • General and administrative expenses for the quarter and nine months ended September 30, 2019 were $3.3 million and $10.0 million, respectively, compared to $3.3 million and $9.6 million for the same periods in 2018.
  • Research and development expenses for the quarter and nine months ended September 30, 2019 were $13.1 million and $28.2 million respectively, compared $6.5 million and $18.0 million for the same periods in 2018.
  • Net cash used in operating activities for the nine months ended September 30, 2019 was $28.1 million, compared to $19.4 million for the same period in 2018.
  • Cash balance was $29.0 million as of September 30, 2019, compared to $39.7 million as of June 30, 2019.

Conference Call and Webcast Information
The Company will host a conference call and webcast with the investment community on Wednesday, November 6th at 4:30 p.m. Eastern Time featuring remarks by Tony Liu, Executive Director, CEO and CFO of CBMG.

Live Call:

Toll-Free: 1-855-327-6838

International: 1-604-235-2082



Webcast:

http://public.viavid.com/index.php?id=136796 



Replay:

Toll-Free: 1-844-512-2921

International: 1-412-317-6671

Conference ID: 10007976

(Available approximately two hours after the completion of the live call until 11:59 p.m. ET on November 20, 2019)

About Cellular Biomedicine Group
Cellular Biomedicine Group, Inc. (CBMG) develops proprietary cell therapies for the treatment of cancer and degenerative diseases. It conducts immuno-oncology and stem cell clinical trials in China using products from its integrated GMP laboratory. The Company's GMP facilities in China, consisting of twelve independent cell production lines, are designed and managed according to both China and U.S. GMP standards. Its Shanghai facility includes a "Joint Laboratory of Cell Therapy" with GE Healthcare and a "Joint Cell Therapy Technology Innovation and Application Center" with Thermo Fisher Scientific, which partnerships focus on improving manufacturing processes for cell therapies. CBMG currently has ongoing CAR-T Phase I clinical trials in China. The China NMPA (formerly CFDA) accepted the Company's IND application for a Phase II trial for AlloJoin®, CBMG's "Off-the-Shelf" allogenic haMPC therapy for the treatment of Knee Osteoarthritis (KOA), and the Company's IND application for a Phase II trial for ReJoin® autologous haMPC therapy for the treatment of KOA. CBMG is included in the broad-market Russell 3000® Index and the small-cap Russell 2000® Index, and the Loncar China BioPharma index. To learn more about CBMG, please visit www.cellbiomedgroup.com.

Forward-Looking Statements
Statements in this press release relating to plans, strategies, trends, specific activities or investments, and other statements that are not descriptions of historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include those regarding our ability to implement our plans, strategies and objectives for future operations, including regulatory approval of our IND applications, our plan to configure part of our Shanghai facility with GE Healthcare's FlexFactory platform, our ability to execute on our obligations under the terms of our licensing and collaboration arrangement with Novartis, our ability to execute on proposed new products, services or development thereof, results of our clinical research and development, regulatory infrastructure governing cell therapy and cellular biopharmaceuticals, our ability to enter into agreements with any necessary manufacturing, marketing and/or distribution partners for purposes of commercialization, our ability to seek intellectual property rights for our product candidates, competition in the industry in which we operate, overall market conditions, any statements or assumptions underlying any of the foregoing and other risks detailed from time to time in CBMG's reports filed with the Securities and Exchange Commission, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Forward-looking statements may be identified by terms such as "may," "will," "expects," "plans," "intends," "estimates," "potential," or "continue," or similar terms or the negative of these terms. Although CBMG believes the expectations reflected in the forward-looking statements are reasonable, they cannot guarantee that future results, levels of activity, performance or achievements will be obtained. CBMG does not have any obligation to update these forward-looking statements other than as required by law. 

For more information, please contact:

Company Contact:
Derrick C. Li
Head of Strategy and Investor Relations, CBMG
Phone: 917-717-0994
Email: derrick.li@cellbiomedgroup.com

Investor Contact:
Valter Pinto / Allison Soss
KCSA Strategic Communications
Phone: 212-896-1254 / 212-896-1267
Email: cellbiomed@kcsa.com

CELLULAR BIOMEDICINE GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)






September 30,


December 31,


2019


2018





 Assets




Cash and cash equivalents

$29,035,677


$52,812,880

Restricted cash

17,000,000


-

Accounts receivable, less allowance for doubtful accounts of nil and $94,868 as of September 30, 2019 and December 31, 2018, respectively

-


787

Other receivables

591,271


101,909

Prepaid expenses

1,589,479


1,692,135

Total current assets

48,216,427


54,607,711





Investments

240,000


240,000

Property, plant and equipment, net

19,856,287


15,193,761

Right of use

14,298,613


15,938,203

Goodwill

7,678,789


7,678,789

Intangibles, net

7,521,523


7,970,692

Long-term prepaid expenses and other assets

7,640,535


5,952,193

Total assets

$105,452,174


$107,581,349





Liabilities and Stockholders' Equity








Liabilities:




Short-term debt

$14,138,419


$-

Accounts payable

5,686,023


422,752

Accrued expenses

1,477,174


1,878,926

Taxes payable

28,625


28,950

Other current liabilities

4,526,594


5,710,578

Total current liabilities

25,856,835


8,041,206





Other non-current liabilities

12,545,245


14,321,751

Total liabilities

38,402,080


22,362,957













Stockholders' equity:








    Preferred stock, par value $.001, 50,000,000 shares authorized; none issued and outstanding as of September 30, 2019 and December 31, 2018, respectively

-


-





    Common stock, par value $.001, 300,000,000 shares authorized; 20,327,722 and 19,120,781 issued; and  19,272,223 and 18,119,282 outstanding, as of September 30, 2019 and December 31, 2018, respectively

20,328


19,121

   Treasury stock at cost; 1,055,499 and 1,001,499 shares of common stock  as of September 30, 2019 and December 31, 2018, respectively

(14,992,694)


(13,953,666)

Additional paid in capital

271,074,752


250,604,618

    Accumulated deficit

(187,279,880)


(149,982,489)

    Accumulated other comprehensive loss

(1,772,412)


(1,469,192)

Total stockholders' equity

67,050,094


85,218,392





Total liabilities and stockholders' equity

$105,452,174


$107,581,349

 

CELLULAR BIOMEDICINE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)










For the Three Months Ended


For the Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018









Net sales and revenue

$-


$70,431


$49,265


$198,705









Operating expenses:








Cost of sales

-


37,483


8,087


114,176

General and administrative

3,326,630


3,315,614


9,955,073


9,626,106

Selling and marketing

38,267


84,782


121,779


252,247

Research and development

13,126,699


6,545,490


28,157,321


17,985,997

Impairment of non-current assets

-


2,884,896


-


2,914,320

         Total operating expenses

16,491,596


12,868,265


38,242,260


30,892,846

Operating loss

(16,491,596)


(12,797,834)


(38,192,995)


(30,694,141)









Other income :








Interest income, net

352,935


18,173


631,986


140,457

Other income, net

274,430


38,376


267,043


132,300

        Total other income

627,365


56,549


899,029


272,757

Loss before taxes

(15,864,231)


(12,741,285)


(37,293,966)


(30,421,384)









Income taxes credit (provision)

325


(2,479)


(3,425)


(4,879)

















Net loss

$(15,863,906)


$(12,743,764)


$(37,297,391)


$(30,426,263)

Other comprehensive loss:








Cumulative translation adjustment

(303,821)


(834,382)


(303,220)


(1,136,743)

Total other comprehensive loss:

(303,821)


(834,382)


(303,220)


(1,136,743)









Comprehensive loss

$(16,167,727)


$(13,578,146)


$(37,600,611)


$(31,563,006)









Net loss per share :








  Basic and diluted

$(0.82)


$(0.72)


$(1.98)


$(1.76)

















Weighted average common shares outstanding:








  Basic and diluted

19,256,129


17,604,473


18,881,266


17,281,240

 

CELLULAR BIOMEDICINE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS






For the Nine Months Ended


September 30,


2019


2018



CASH FLOWS FROM OPERATING ACTIVITIES:




  Net loss

$(37,297,391)


$(30,426,263)

  Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

4,099,029


3,790,436

Loss on disposal of assets

32,236


4,593

Stock based compensation expense

3,109,410


3,748,082

Other than temporary impairment on long-term investments

-


29,424

Impairment on intangible assets

-


2,884,896

Allowance for doubtful account

-


83,992

Interest expense

320,709


-

Interest from pledged bank deposits

(371,671)


-

  Changes in operating assets and liabilities:




Accounts receivable

763


70,155

Other receivables

(120,303)


(81,892)

Prepaid expenses

55,519


(376,821)

Long-term prepaid expenses and other assets

(1,920,077)


(333,647)

Accounts payable

4,695,220


41,791

Accrued expenses

(359,332)


396,639

Deferred income

-


(12,114)

Other current liabilities

(308,811)


541,074

Taxes payable

(325)


-

Other non-current liabilities

13,035


280,319

          Net cash used in operating activities

(28,051,989)


(19,359,336)





CASH FLOWS FROM INVESTING ACTIVITIES:




   Proceeds from disposal of assets

172,007


292

   Putting six-month deposits with the banks

-


(10,000,000)

Purchases of intangibles

(804,042)


(33,495)

Purchases of assets

(8,645,724)


(4,438,135)

          Net cash used in investing activities

(9,277,759)


(14,471,338)





CASH FLOWS FROM FINANCING ACTIVITIES:




Net proceeds from the issuance of common stock

17,166,199


70,383,181

Proceeds from exercise of stock options

195,731


2,708,603

Proceeds from short-term debt

14,546,035


-

Interest paid

(309,410)


-

Repurchase of treasury stock

(1,039,028)


(2,536,064)

          Net cash provided by financing activities

30,559,527


70,555,720





EFFECT OF EXCHANGE RATE CHANGES ON CASH

(6,982)


(368,270)





INCREASE/(DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(6,777,203)


36,356,776

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

52,812,880


21,568,422

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

$46,035,677


$57,925,198









SUPPLEMENTAL CASH FLOW INFORMATION








Cash paid for income taxes

$3,750


$4,879




September 30,


September 30,


2019


2018

Reconciliation of cash, cash equivalents and  restricted cash in condensed consolidated statements of cash flows:




Restricted cash

$17,000,000


$-

Cash and cash equivalents

29,035,677


57,925,198





Cash, cash equivalents and restricted cash

$46,035,677


$57,925,198

 

Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/cellular-biomedicine-group-reports-third-quarter-of-2019-financial-results-and-business-highlights-300953134.html