Histogenics (NSDQ:HSGX) today announced a $10 million sale deal and released its fourth quarter and full year 2017 earnings, seeing shares fall as losses grew, despite the company beating The Street with its loss-per-share numbers.
The company said it inked an equity distribution agreement with Cannacord Genuity to sell up to $10 million, with Cannacord acting as its sales agent. Cannacord will receive 3% of the gross proceeds from the sale, the company said.
Shares in the company have fallen today despite the company beating The Street with its fourth quarter and fiscal year 2017 earnings.
The Waltham, Mass.-based company posted losses of $6.1 million, or 26¢ per share for the three months ended December 31, seeing a swing into the red when compared to the same period during the previous year.
For the full year, Histogenics posted losses of $22.5 million, or 99¢ per share, with losses growing 62.3% compared with the previous fiscal year.
Losses per share for the quarter and year were ahead of consensus on Wall Street, where analysts expected to see losses per share of 27¢ and $1.06 for the quarter and year, respectively.
“We achieved multiple, significant milestones in our global development strategy for NeoCart in 2017, providing a strong foundation for additional value creation in 2018. With the completion of enrollment in the NeoCart Phase 3 clinical trial in the first half of 2017, we are on track to report top-line data from this trial and potentially submit a Biologics License Application for this novel restorative cell therapy in the third quarter of 2018. In parallel we are initiating pre-commercialization activities for the U.S. market in advance of a potential launch of NeoCart in fourth quarter of 2019, and we continue to hear positive anecdotal feedback from our investigators regarding NeoCart patients. We also made significant progress on the international expansion of the NeoCart platform by completing formal discussions with the Japan Pharmaceuticals and Medical Devices Agency on the development and regulatory pathway for NeoCart in Japan. Our robust historical data packages and the PMDA conclusions were instrumental in our ability to complete the licensing agreement with MEDINET for the rights to develop and commercialize NeoCart in Japan,” prez & CEO Adam Gridley said in a press release.
Shares in Histogenics dropped 4.6% today, closing at $2.90.
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