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ImmunoCellular Therapeutics (NYSE MKT: IMUC) Q4/12 And FY12 Results

Net income of $484 K, or $0.01 per share

For Q4/12, IMUC reported net income of $484 K, or $0.01 per basic and diluted share, compared to a net loss of $1.499 M, or $0.05 per share for Q4/11. The income reflects a credit of $2.7 M related to the revaluation of warrant derivatives. The net loss for Q4/11 reflected a credit of $1.4 M related to the revaluation of warrant derivatives.

For FY12, IMUC incurred a net loss of $14.5 M, or $0.35 per share compared to a net loss of $5.7 M for FY11. The net loss includes a charge of $2.3 M related to the revaluation of the warrant derivatives and $496 K in stock-based compensation. The net loss for 2011 included a credit of $2.9 M related to the revaluation of the warrant derivatives and charge of $1.2 M for stock-based compensation.

For Q4/12, cash used in operations was $3.2 M compared to $1.8 M in Q4/11. R&D costs jumped to $7.7 M from $4.9 M in FY11 while G&A expenses jumped to $3.6 M from $1.19 M in FY11. Losses before expense in FY12 were $11.8 M compared to $8.6 M in FY11.

  • IMUC ended FY12 with had $26.2 M in cash. During 2012, IMUC completed 2 equity financings which provided $28.6 M, net of expenses, and received $3.2 M from the exercise of warrants.

FY12 Results: IMUC reported that cash used in operations during 2012 was $12.4 M compared to $6.4 M in 2011. The increase reflects the continued ramp-up of the company's P2 clinical trial of ICT-107 as well as R&D activities for ICT-121 and ICT-140. G&A expenses increased in 2012 in order to develop and support its additional infrastructure.

The Bottom line: Good cash, better management and based on "earlier" trial data (although a small patient population) - IMUC has "good" prospects for clinical success. Interim analysis of the ongoing ICT-107 P2 clinical trial and of the interim analysis by the data monitoring committee is anticipated in Q2/13 and the first top-line results are is expected to be available by the end of this year. IMUC completed enrollment for the P2 trial of ICT-107 in patients with newly diagnosed glioblastoma, and that trial continues to progress well. 2 INDs, for ICT-121 and ICT-140 are currently active, with plans underway to begin clinical trials for both programs. IMUC brought a 2nd manufacturing site on-line for ICT-107, advancing its ability to meet the needs of further clinical testing. The controversy is over their claim that they could possible treat 75% of patients with "glio". The actual treated patients in the trial would indicate that only about 50% would make the cut. The problem is IMUC has never given an adequate explanation of why they still think it could be 75%.

This RegMed sector is erratic in reference to trial recruitment - I like others are still perplexed by the "screened" versus "enrolled" question … concerning the "push" potential of forcing a "statistical" outcome. IMUC was closed at $2.80 up $0.08 or +2.94% to $2.80 in a 50 day moving average of $2.41 and a 200 day of $2.32 and a short <2/15> ratio of 8.1% of a 46.96 share float. Consensus is a … "Strong BUY" and MLV boosted its outlook from $3.50 to $5.00 with a BUY ranking. IMUC is now trading above moving averages - 10, 20, 50, 100, 200 …very bullish indicators … but, I am - skeptical - earnings conference call had "holes". Traders are always selling into strength and IMUC has had a good run since 1/2/13 - the question is - can it last … in this market? IMUC will have to raise cash … $26 M in the till but, with a $3 M quarterly burn - it won't be immediate but, it is on the horizon to ramp up trials and compound manufacturing costs. Clinical data will be the pricing mover - although I DON'T see dramatic jumps - only incremental moves based on sector aggregates. A "SELL" but, on my just … wait and see list.

Also see PropThink review by Dr. Dee Kotak, MD which also reviews IMUC.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.