Fibrocell, Focused On Research And Development, Announces Six-Month Financial Picture

Fibrocell Science, Inc. of Exton, an autologous cell therapy company focused on developing first-in-class treatments for rare and serious skin and connective tissue diseases, spent $10.1 million on research and development in the first half of 2014.

For the six months that ended June 30, Fibrocell reported a basic net loss of $0.40 per share, compared to basic net loss of $0.73 per share for the same period in 2013. The company used $10.2 million in cash for operations during the first six months of 2014, as compared to $10.4 million for that period in 2013.

Fibrocell reported a $0.9 million increase in manufacturing and laboratory costs and an increase of $0.2 million in other spending. Selling, general and administrative expenses were $6.3 million, an increase of $1.8 million compared to the six months ended June 30, 2013, primarily due to increases in compensation and related expenses of $1 million, professional fees of $0.6 million and legal costs of $0.1 million.

Marketing expenses decreased $0.2 million as the company says its strategic focus has shifted away from the commercial product LAVIV®. Facilities and related expenses increased $0.3 million due to a hike in office costs.

As a result, operating loss for the first half of 2014 was $17.6 million as compared to $11.7 million in the same period in 2013.  Cash and cash equivalents totaled $49.5 million as of June 30, compared to $60 million on Dec. 31, 2013. Cash was used primarily to fund core business initiatives.

Currently, patients are enrolled in restrictive burn scarring and vocal cord scarring clinical trials.  The firm also began technology transfer, process development and manufacturing of genetically-modified cell therapies for Recessive Dystrophic Epidermolysis Bullosa with Progenitor Cell Therapy, a subsidiary of NeoStem, Inc.

The FDA granted orphan drug designation for genetically-modified autologous human fibroblasts to treat Dystrophic Epidermolysis Bullosa,  a category of rare and severe genetic skin diseases. It also has an exclusive license agreement with the regents of the University of California to commercially apply any patented discoveries and technologies from their collaboration.

A webcast of the financial results call is here.