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Earnings: Catabasis Q1 loss narrows on lower expenses, beats estimates

Catabasis Pharmaceuticals (Nasdaq: CATB) reported a narrower net loss for the first quarter of 2019. The improvement in the bottom line, which also surpassed estimates, was driven by a decline in operating expenses.

The Cambridge-based biopharmaceutical company reported a net loss of $6.04 million or $0.62 per share for the first quarter, marking a significant improvement from the last year’s net loss of $7.65 million or $2.88 per share. Wall Street analysts had predicted a wider net loss.

Research and development expenses declined to $4.2 million during the March quarter from $5.25 million in the corresponding period of last year. Also, there was an 11% drop in general and administrative expenses.

“We are making strong progress with enrollment in our Phase 3 PolarisDMD trial for edasalonexent, and the trial is now enrolling patients in seven countries. There has been significant interest from families and enthusiasm from investigators globally, and we believe that approximately 90% of the patients have been identified ,” said CEO Jill Milne.

Research and development expenses declined to $4.2 million during the March quarter from $5.25 million in the corresponding period of last year

The company said patient enrollment in the planned clinical trial on edasalonexent, to evaluate its efficacy in the treatment of duchenne muscular dystrophy, is progressing fast. Top-line results from the study are expected to be out in the second half of 2020, which will be followed by an NDA filing in early 2021.

Also see: Catabasis Pharmaceuticals Q4 2018 Earnings Conference Call Transcript

Earlier clinical trials on the formulation indicated a slowdown in disease progression and general improvement in muscle function. The company believes it has sufficient cash to fund operations up to top-line phase-III results.

Catabasis shares are currently trading at multi-year lows, continuing the downtrend that began a few years ago. In the past twelve months alone, the stock lost about 53%. However, it pared a part of the loss in recent months and gained about 70% so far this year.

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

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