erus BioSciences(US:CHRS)2019-05-09 20:17Financial Performance - Net product revenue for the three months ended March 31, 2019, was $37.1 million, compared to $0 in the same period of 2018[16]. - Total operating expenses for the same period were $53.7 million, an increase of 27.8% from $42.0 million in Q1 2018[16]. - The net loss for the three months ended March 31, 2019, was $20.0 million, a significant improvement from a net loss of $44.3 million in Q1 2018[16]. - The company reported a net loss per share attributable to Coherus of $0.29 for Q1 2019, compared to $0.74 in Q1 2018[16]. - The company reported a net cash used in operating activities of $57.0 million for Q1 2019, compared to $33.6 million for Q1 2018, indicating increased cash burn[27]. - The company reported a net gain of $169,000 from foreign exchange for the three months ended March 31, 2019, compared to a net loss of $8,000 for the same period in 2018[37]. Cash and Liquidity - Cash and cash equivalents increased to $81.5 million as of March 31, 2019, up from $72.4 million at the end of 2018[13]. - Total cash, cash equivalents, and restricted cash amounted to $82.35 million as of March 31, 2019, a slight decrease from $82.86 million as of March 31, 2018[45]. - The company raised $8.2 million from the issuance of 761,130 shares of common stock at a weighted average price of $11.17 per share in January 2019[31]. - The company may need to raise additional funds in the future, but there is no assurance that such efforts will be successful[31]. Assets and Liabilities - Total assets as of March 31, 2019, were $186.1 million, compared to $99.5 million at the end of 2018, reflecting a 87% increase[13]. - Total liabilities increased to $224.6 million as of March 31, 2019, from $138.1 million at the end of 2018, representing a 62.5% rise[13]. - The company reported an accumulated deficit of $1.0 billion and cash and cash equivalents of $96.4 million as of March 31, 2019[31]. - Total stockholders' deficit was $38,515,000 as of March 31, 2019, slightly improved from $38,591,000 as of December 31, 2018[13]. Research and Development - Research and development expenses for Q1 2019 were $18.8 million, down from $25.5 million in Q1 2018, indicating a 26.3% decrease[16]. - The company recognized $1.5 million for services rendered by Medpace within research and development expense for the three months ended March 31, 2018[141]. - Research and development expenses include costs for salaries, consultant fees, and clinical trial costs, with all costs charged to expense as incurred[64]. Inventory and Cost of Goods Sold - The total inventory as of March 31, 2019, was $12.0 million, an increase from $5.7 million as of December 31, 2018[94]. - Cost of goods sold for the three months ended March 31, 2019, included a write-off of prepaid manufacturing costs of $1.3 million and $0.4 million for excess and obsolete inventory[62]. - The company began capitalizing inventory costs associated with UDENYCA® after receiving regulatory approval in November 2018[47]. Sales and Marketing - The company aims to continue building its sales and marketing infrastructure for UDENYCA® and expand its product offerings in the biosimilar market[6]. - Coherus initiated U.S. sales of UDENYCA® on January 3, 2019, following regulatory approvals from the European Commission and the FDA[30]. - Revenue from product sales is recognized when a customer controls the product, which occurs upon delivery and acceptance[52]. Debt and Financing - The company entered into a credit agreement for a six-year term loan facility of $75.0 million in January 2019[31]. - The Company entered into a Term Loan agreement for a principal amount of $75.0 million, with an effective interest rate of 10.8% as of March 31, 2019[115][116]. - Future payments on the Term Loan total $114.353 million, with a net carrying amount of $73.124 million after accounting for debt discount and issuance costs[125]. - The Company recognized total interest expense of $1.772 million related to the Term Loan for the three months ended March 31, 2019[124]. Stock and Shares - The weighted-average number of shares used in computing net loss per share attributable to Coherus increased to 69.1 million in Q1 2019 from 60.1 million in Q1 2018[16]. - The total outstanding dilutive potential shares increased to 22,270,300 as of March 31, 2019, up from 18,379,251 as of December 31, 2018[71]. - The company sold 761,130 shares of common stock at a weighted average price of $11.17 per share, generating gross proceeds of $8.5 million in the first quarter of 2019[139].