Orchard Therapeutics plc(US:ORTX)2023-08-10 20:36Financial Performance - For the six months ended June 30, 2023, the net losses were $29.7 million, compared to $95.2 million for the same period in 2022, indicating a significant reduction in losses [120]. - The company reported a net loss attributable to ordinary shareholders of $29.719 million for the six months ended June 30, 2023, compared to a net loss of $95.212 million in 2022, a reduction of $65.493 million or -68.8% [153]. - Other (expense) income improved from a loss of $25.3 million in the first half of 2022 to a gain of $19.1 million in the first half of 2023, driven by reduced foreign currency transaction losses [161]. Revenue - Total revenues for the three months ended June 30, 2023, were $7.3 million, an increase of $2.9 million from $4.4 million in the same period in 2022 [140]. - Product revenue, net for Libmeldy was $6.7 million for the three months ended June 30, 2023, up from $3.1 million in 2022, reflecting a $3.5 million increase [141]. - Collaboration revenue for the three months ended June 30, 2023, was $0.7 million, compared to $0.6 million in the same period in 2022 [142]. - Product revenue, net for the six months ended June 30, 2023, was $7.185 million, a decrease of $1.655 million or -18.7% compared to $8.840 million in 2022 [153]. Expenses - Research and development expenses for the three months ended June 30, 2023, were $16.7 million, down from $22.0 million in 2022, a decrease of $5.3 million [140]. - Selling, general and administrative expenses decreased to $11.0 million for the three months ended June 30, 2023, from $13.7 million in 2022, a reduction of $2.7 million [140]. - Total research and development expenses for the six months ended June 30, 2023, were $32.688 million, down $17.511 million or -34.8% from $50.199 million in 2022 [158]. - Total selling, general and administrative expenses decreased from $27.029 million for the six months ended June 30, 2022, to $22.127 million for the same period in 2023, a decrease of $4.902 million or -18.1% [153]. Cash Flow and Financing - Net cash used in operating activities was $57.3 million for the first half of 2023, primarily due to a net loss of $29.7 million and unrealized foreign currency transaction gains of $9.8 million [170]. - Net cash used in investing activities was $36.0 million in the first half of 2023, mainly due to purchases of marketable securities totaling $114.6 million [173]. - Net cash provided by financing activities was $62.4 million in the first half of 2023, primarily from a private placement financing of $68.0 million [175]. - The company completed a private placement in March 2023, raising gross proceeds of $34.0 million from the initial closing and an additional amount in June 2023 [125]. Market and Product Development - The marketing authorization for Strimvelis was transferred to Fondazione Telethon in July 2023, resulting in no future revenue from this product [123]. - The company plans to continue developing its product candidates and expanding its sales and marketing infrastructure for Libmeldy [176]. - The company generated its first commercial sale of Libmeldy in Europe in the first quarter of 2022, following its marketing authorization in December 2020 [164]. Foreign Currency and Interest Rates - For the three months ended June 30, 2023, the company recorded net realized and unrealized foreign currency gains of $1.9 million, compared to losses of $18.2 million for the same period in 2022 [185]. - For the six months ended June 30, 2023, the company recorded net realized foreign currency gains of $7.5 million, compared to losses of $24.3 million for the same period in 2022 [185]. - The company does not currently engage in currency hedging activities but may consider using foreign currency forward and swap contracts in the future [187]. - The company does not expect immediate changes in interest rates to materially affect its operating results or cash flows [183].