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01/10 00:47
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presented mixed signals. While strategic collaborations and funding are positive, the decline in revenue and increased operating loss are concerning. The Q&A highlighted ongoing projects and potential future benefits but also revealed some uncertainties, particularly regarding patient recruitment and manufacturing timelines. Despite some positive developments, the overall financial health and lack of immediate catalysts suggest a neutral market reaction.
Total Revenue (Q2 2025) $5.7 million, up from $5.1 million in Q2 2024, reflecting a 43% sequential growth and year-over-year increase due to higher product sales and a more favorable revenue mix.
Gross Profit (Q2 2025) $1.3 million or 23.5% of revenue, compared to $0.4 million or 8.8% in Q2 2024, driven by a more favorable revenue mix.
Research and Development Expenses (Q2 2025) $3.5 million, up from $1.9 million in Q2 2024, driven by continuing investment in the EscharEx VALUE Phase III study.
SG&A Expenses (Q2 2025) $3.6 million, up from $3 million in Q2 2024, primarily due to increased share-based compensation.
Operating Loss (Q2 2025) $5.7 million, compared to $4.5 million in Q2 2024, reflecting higher R&D and SG&A expenses.
Net Loss (Q2 2025) $13.3 million or $1.23 per share, compared to $6.3 million or $0.68 per share in Q2 2024, mainly driven by $6.6 million in noncash financial expenses reflecting the revaluation of warrants.
Adjusted EBITDA Loss (Q2 2025) $4.5 million, compared to $3.4 million in Q2 2024, reflecting higher operating expenses.
Total Revenue (First Half 2025) $9.7 million, compared to $10 million in the first half of 2024, a slight decrease primarily due to lower BARDA-funded development revenue as the NexoBrid R&D program nears completion.
Gross Profit (First Half 2025) $2.1 million or 21.5% of revenue, compared to $1.1 million or 10.5% in the first half of 2024, driven by a more favorable revenue mix.
R&D Expenses (First Half 2025) $6.4 million, up from $3.4 million in the first half of 2024, driven by clinical investment in EscharEx.
SG&A Expenses (First Half 2025) $6.6 million, compared to $5.9 million in the first half of 2024, reflecting increased share-based compensation.
Operating Loss (First Half 2025) $10.9 million, compared to $8.2 million in the first half of 2024, reflecting higher R&D and SG&A expenses.
Net Loss (First Half 2025) $14 million or $1.30 per share, compared to $16 million or $1.73 per share in the first half of 2024, reflecting lower noncash financial expenses.
Adjusted EBITDA Loss (First Half 2025) $8.5 million, compared to $6.2 million in the first half of 2024, reflecting higher operating expenses.
Cash Position (June 30, 2025) $32.9 million in cash, cash equivalents, and deposits, compared to $43.6 million at year-end 2024, with $11.9 million used to fund operations, including $2.3 million in CapEx for the new manufacturing facility.
EscharEx VALUE Phase III trial: Actively enrolling 216 patients across 40 sites in the US and Europe. Interim sample size assessment expected by mid-2026. New collaborations with Essity and Convatec established to support trials.
NexoBrid: Continues to gain traction in the US market with 52% YoY revenue growth in Q2 2025. Manufacturing scale-up on track for completion by year-end. Additional $3.6M funding from the US Department of Defense for room temperature-stable formulation development.
US market expansion for NexoBrid: 52% YoY revenue growth driven by increased hospital unit orders and ordering centers.
Manufacturing scale-up: Commissioning of new manufacturing facility on track for completion by year-end to support global growth.
Financial performance: Q2 2025 revenue grew 43% sequentially to $5.7M. Gross profit increased to $1.3M (23.5% of revenue). Operating loss was $5.7M, and net loss was $13.3M due to noncash financial expenses.
Strategic collaborations: New partnerships with Essity and Convatec to support EscharEx trials. Reinforces validation of EscharEx in the wound care ecosystem.
Funding for NexoBrid: $3.6M additional funding from the US Department of Defense, bringing total program funding to $18.2M.
EscharEx VALUE Phase III trial enrollment: The trial is actively enrolling patients, but the timeline for interim sample size assessment is mid-2026, which could delay actionable results and impact strategic objectives.
Manufacturing scale-up for NexoBrid: The commissioning of the new manufacturing facility is on track, but regulatory authority review and approval could delay commercial output, affecting global growth plans.
Financial performance: Net loss increased significantly to $13.3 million in Q2 2025, driven by noncash financial expenses and higher R&D and SG&A costs, which could strain financial resources.
Cash position: Cash reserves decreased to $32.9 million as of June 30, 2025, with operational funding heavily reliant on warrant exercises, posing a risk to financial stability if warrants are not exercised.
U.S.-based manufacturing for NexoBrid: Future U.S.-based manufacturing is still in planning stages, and delays could impact the ability to meet demand and strategic goals.
Dependency on collaborations: The company relies heavily on collaborations with partners like Essity, Convatec, and BARDA, which could pose risks if partnerships face challenges or fail to deliver expected outcomes.
EscharEx VALUE Phase III trial: Enrollment is actively progressing, aiming to enroll 216 patients across 40 sites in the United States and Europe. An interim sample size assessment is expected by mid-2026.
Collaborations for EscharEx: New collaborations with Essity and Convatec have been established to support the VALUE trial and the planned DFU trial. Essity's JOBST medical compression therapy products and Convatec's AQUACEL dressings are integrated into the trial protocols.
NexoBrid manufacturing scale-up: The commissioning of the new manufacturing facility remains on track for completion by year-end 2025. Regulatory authority review and approval will determine the timing of commercial output.
Future U.S.-based manufacturing for NexoBrid: Planning continues as part of collaboration with BARDA. An additional $3.6 million in non-dilutive funding from the U.S. Department of Defense has been awarded to support the development of a room temperature-stable formulation for NexoBrid.
Financial flexibility: The company believes its current cash position, along with potential proceeds from in-the-money warrants, provides financial flexibility to advance key programs and support operational needs through upcoming milestones.
The selected topic was not discussed during the call.
The earnings call summary presents a mixed picture with both positive and negative aspects. The company shows strong partnerships and financial flexibility, but faces challenges like increased EBITDA loss and dependency on government contracts. The Q&A reveals optimism in sales estimates and market strategy but lacks transparency in revenue breakdown and contract timelines. Overall, the sentiment is neutral as positive elements are balanced by uncertainties and financial challenges.
The earnings call presented mixed signals. While strategic collaborations and funding are positive, the decline in revenue and increased operating loss are concerning. The Q&A highlighted ongoing projects and potential future benefits but also revealed some uncertainties, particularly regarding patient recruitment and manufacturing timelines. Despite some positive developments, the overall financial health and lack of immediate catalysts suggest a neutral market reaction.
The earnings call reveals several challenges: declining revenue, increased operating loss, and competitive pressures against EscharEx. Despite some positive developments, such as the new manufacturing facility and improved gross margin, these are overshadowed by financial struggles and supply chain issues. The Q&A session highlighted regulatory uncertainties and management's vague responses about future government purchases and financial projections. Without a share repurchase program or positive shareholder return plan, the overall sentiment is negative, likely leading to a stock price decline of 2% to 8%.
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