Orchard Therapeutics plc(US:ORTX)2023-05-15 11:11Financial Performance - For the three months ended March 31, 2023, the company reported a net product revenue of $534,000, a decrease of $4.525 million compared to $5.059 million in the same period of 2022[157]. - Total revenues for the three months ended March 31, 2023, were $1.237 million, down from $5.524 million in the same period of 2022, reflecting a decrease of $4.287 million[157]. - The company incurred a net loss of $17.4 million for the three months ended March 31, 2023, compared to a net loss of $44.3 million for the same period in 2022, representing an improvement of $26.8 million[157]. - Other income increased from a $6.7 million loss in Q1 2022 to an $8.8 million gain in Q1 2023, driven by foreign currency transaction gains[165]. - Net cash used in operating activities for Q1 2023 was $29.5 million, compared to $19.6 million in Q1 2022[173]. Revenue Sources - Collaboration revenue increased by $238,000 to $703,000 for the three months ended March 31, 2023, compared to $465,000 in the same period of 2022[157]. - Collaboration revenue for Q1 2023 was $0.7 million, up from $0.5 million in Q1 2022, reflecting a 40% increase[159]. Expenses - Research and development expenses for the three months ended March 31, 2023, were $15.993 million, down from $28.234 million in the same period of 2022, a decrease of $12.241 million[157]. - Total direct research and development expenses decreased by $8.5 million, or 60%, from $14.1 million in Q1 2022 to $5.6 million in Q1 2023[162]. - Total indirect research and development expenses decreased by $3.7 million, or 26%, from $14.1 million in Q1 2022 to $10.4 million in Q1 2023[163]. - Selling, general, and administrative expenses decreased by $2.2 million, or 16%, from $13.3 million in Q1 2022 to $11.1 million in Q1 2023[164]. - Interest expense increased to $1.0 million in Q1 2023 from $0.7 million in Q1 2022, while interest income rose to $1.0 million from $0.1 million[166]. Cash and Funding - As of March 31, 2023, the company had an accumulated deficit of $918.3 million and cash, cash equivalents, and marketable securities totaling $146.3 million[134]. - The company expects to incur significant expenses and increasing operating losses in the foreseeable future, necessitating substantial additional funding[135]. - In March 2023, the company completed a private placement, raising gross proceeds of $34.0 million by selling 56,666,900 ordinary shares and warrants[138]. - Net cash provided by financing activities in Q1 2023 was $31.5 million, primarily from a private placement financing of $34 million[178]. - The company believes existing cash, cash equivalents, and marketable securities, along with expected proceeds from Libmeldy sales, will fund operating expenses and capital requirements into 2025[180]. - As of March 31, 2023, the company had cash, cash equivalents, marketable securities, and restricted cash totaling $150.5 million[185]. - The company has borrowed $33.0 million under its credit facility, with a carrying value of term loans at $30.1 million as of March 31, 2023[186]. Strategic Plans - The company plans to continue its commercialization efforts for Libmeldy, with a focus on severe neurometabolic diseases and early research programs[136]. - The company aims to grow its sales, marketing, and distribution infrastructure for Libmeldy in Europe and other product candidates[181]. - The company plans to develop in-house manufacturing operations and facilities[181]. - The company is focused on expanding its intellectual property portfolio and complying with public company obligations[181]. Accounting and Compliance - There have been no material changes to the company's critical accounting policies since December 31, 2022[182]. - The company does not currently engage in currency hedging activities but may consider it in the future[189].