Can-Fite BioPharma Ltd. , a biotechnology company with a pipeline of proprietary small molecule drugs that address inflammatory and cancer diseases, today reported financial results for the first quarter ended March 31, 2014.
Dr. Pnina Fishman, CEO of Can-Fite stated, “During the first quarter of 2014 we applied for, and received approval from the Institutional Review Board in Israel for our Phase II study protocol for the treatment of advanced liver cancer with CF102. We plan to initiate the trial during the second quarter and we anticipate similar approvals for the trial protocol in the U.S. and Europe.”
“We are currently preparing the study protocol for our Phase III trial of CF101 in the treatment of rheumatoid arthritis. In March, we announced the addition of Dr. Lee S. Simon, a rheumatologist, key opinion leader, and industry expert, as consultant to assist in the regulatory and clinical development of our rheumatoid arthritis program.”
“In addition to these developments in our clinical programs, during the first quarter, we fortified our balance sheet by closing on a private placement primarily with U.S. healthcare focused institutional investors resulting in gross proceeds of $5 million. We also continued to build our intellectual property assets with the receipt of a patent in Japan for manufacturing of CF101. This adds to our current Japanese patent portfolio and bolsters our licensing deal with Seikagaku in Japan.”
Research and development expenses for the three months ended March 31, 2014 were NIS 3.82 million (U.S. $1.10 million) compared with NIS 3.55 million (U.S. $1.02 million) for the same period in 2013. Research and developments expenses for the first quarter of 2014 comprised primarily of expenses associated with the initiation of a planned Phase II study for CF-102 as well as expenses for pre-clinical studies of CF-102.
General and administrative expenses were NIS 2.94 million (U.S. $0.84 million) for the three months ended March 31, 2014 and NIS 2.74 million (U.S. $0.78 million) for the same period in 2013. The increase is primarily due to investor relations expenses.
Financial income, net for the three months ended March 31, 2014 aggregated NIS 0.51 million (U.S. $0.15 million) compared to financial expenses, net of NIS 1.63 million (U.S. $0.47 million) for the same period in 2013. The financial income, net in the first quarter of 2014 was mainly due to a decrease in the fair value of the Company’s warrants.
Can-Fite’s loss for the three months ended March 31, 2014 was NIS 6.26 million (U.S. $1.80 million) compared with a loss of NIS 7.92 million (U.S. $2.27 million) for the same period in 2013. The decrease in net loss for the first quarter of 2014, was attributable to an increase in finance income, net, partially offset by an increase in operating expenses.
As of March 31, 2014, Can-Fite had cash and cash equivalents of NIS 27.42 million (U.S. $7.86 million) as compared to NIS 20.77 million (U.S. $5.96 million) at December 31, 2013. The increase in cash during the period is due to proceeds of NIS 15.90 million (U.S. $4.56 million) from the Company’s private placement during the three months ended March 31, 2014, which exceeded the payments made by the Company to finance its operations.
For the convenience of the reader, the reported NIS amounts have been translated into U.S. dollars, at the representative rate of exchange on March 31, 2014 (U.S. $ 1 = NIS 3.487).
The Company’s consolidated financial results for the three months ended March 31, 2014 are presented in accordance with International Financial Reporting Standards.
About Can-Fite BioPharma Ltd.
Can-Fite BioPharma Ltd. is an advanced clinical stage drug development Company with a platform technology that is designed to address multi-billion dollar markets in the treatment of cancer and inflammatory diseases. The Company’s CF101 is in Phase II/III trials for the treatment of psoriasis and the Company is preparing for a Phase III CF101 trial for rheumatoid arthritis. Can-Fite’s liver cancer drug CF102 is commencing Phase II trials and has been granted Orphan Drug Designation by the U.S. Food and Drug Administration. CF102 has also shown proof of concept to potentially treat other cancers including colon, prostate, and melanoma. These drugs have an excellent safety profile with experience in over 1,200 patients in clinical studies to date.
SOURCE Can-Fite BioPharma Ltd.