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Aastrom (ASTM) Q4/12 And FY12 Results

A net loss of $7.9 M, or $0.18 per share

A Q4/12 net loss of $7.9 M, or $0.18 per share compared to a net loss of $2.8 M or $0.07 per share for Q4/11. The increase in net loss is primarily due to the non-cash change in the fair value of warrants, the non-cash accretion of convertible preferred stock and increases in R&D expenses. A FY12 net loss of $33.5 M, or $0.81 per share compared to a net loss of $19.7 M or $0.51 per share for the FY11.

R&D expenses increased to $6 M from $5.9 M for Q4/11. The increase in R&D expenses was primarily attributable to the launch of the P2b ixCELL-DCM clinical study and the ongoing P3 REVIVE clinical program for ixmyelocel-T, as well as an increase in non-cash stock-based compensation expenses. G&A expenses decreased to $1.6 M compared to $1.9 M for Q4/11. Q4/12 includes a reversal of nearly $1 M in non-cash stock based compensation expense related to stock option forfeitures. This was offset by an increase in non-cash stock based compensation expense before the <stock option> forfeiture(s) adjustment and slightly higher legal and consulting costs. Other income was $1 M compared to $5 M for Q4/11. The fluctuations are due to non-cash changes in the fair value of the outstanding warrants, primarily driven by the change in the fair market value of the common stock. For Q4/12, cash used for operations was $7.3 M. Loss from operations decreased to $7.6 M from $7.8 M in Q4/11. The quarterly net loss increased to $6.65 M from $2.79 M in Q4/11. ASTM used the ATM for approximately $3 M to date with $18+ M left if and as needed. Shares used in computing the net loss were 43.78 M.

  • As of 12/31/12, ASTM had $13.6 M in cash and cash equivalents.

FY12 Results: A net loss of $33.5 M, or $0.81 per share compared to $19.7 M or $0.51 per share for the FY11. R&D expenses were $26.0 M $21.3 M for FY11. G&A expenses were $7.8 M compared to $7.7 M for FY11. Other income was $4.3 M compared to $9.4 M for FY11. For FY 12 cash used for operations were $29.5 M. Shares used in computing the new loss were 38.63 M.

Q4/12 and FY12 Highlights:

  • Appointed Nick Colangelo as President and CEO;
  • Initiated patient enrollment in the P2b ixCELL-DCM clinical study of ixmyelocel-T in patients with ischemic dilated cardiomyopathy;
  • Increased the number of clinical investigators and sites participating in the P3 REVIVE clinical study of ixmyelocel-T in patients with CLI;
  • Appointed Joyce Frey-Vasconcells, PhD, to the SAB.

The Bottom Line: Q4 EPS of -$0.18 beats by $0.05 but, losses were 2.6 X <the previous> FY11 primarily due to increased trial costs which are included in R&D expenses. ASTM's new CEO is focused on … completing enrollment in the P2b ixCELL-DCM study which is … accelerating the rate of enrollments in the P3 REVIVE study with more viable sites < just north of 100 while eliminating some sites>, addressing its capital requirements initially through cost containment and controlling its clinical programs.

The new CEO has inherited a "big plate of issues" and if you think he was hesitant on the call - he has … only had the "bulls eye" on his back for a few days and he understands his transition days are limited to his current 8 day a week schedule - investors WILL be well served!!

ASTM was UP at the close … +$0.03 or +2.34% at $1.31 … pre the earnings announcement … this pricing STILL DOES NOT reflect a late stage P3 trial status and the potential of partnering initiatives. ASTM traded in a lower mid-day range of $1.25 - $1.31 with moderate 273 K volume … compared to Friday's closing of $1.28 with moderate volume of 194.9 K shares. 9.4% of shares are held by institutions and 0.56% is held by insiders. The 50 day moving average is $1.28 while the 200 day average has trended to $1.41. Institutional holdings are running at 15.90% but, the short position is 7.5% of 43.78 M float of the 42.78 M shares outstanding.

As usual <in a review of the past 3-4 announcements …there will be selling "trough" post the earnings release- the stock is down <in the after-market> $0.04 or -3.05% to $1.27. So hold on … still a "Speculative BUY" … but, a lot off issues - trials, cash and partnering need to be addressed by the new CEO!

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