Cellular Biomedicine Group Inc (CMBG) saw its loss widen to $10.66 million, or $0.75 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $5.14 million, or $0.44 a share. Revenue during the quarter plunged 98.40 percent to $0.01 million from $0.62 million in the previous year period. Gross margin for the quarter contracted 2021 basis points over the previous year period to 8.83 percent.
Operating loss for the quarter was $10.42 million, compared with an operating loss of $5.67 million in the previous year period.
“In recent months, we have been diligently preparing for the launch of our upcoming CD19 and CD20 clinical studies and strengthening our CAR-T intellectual property portfolio,” commented Tony (Bizuo) Liu, CBMG’s Chief Executive Officer. “We believe that since August 2015, the China Food and Drug Administration has been working towards formalizing a national cell therapy policy that will lay the groundwork for the safe use of immune cell and stem cell therapy treatments in China. Although the PRC government is still in the process of codifying industry regulations for such cell therapies, in anticipation of potential future market opportunities, we have accelerated the launch of multiple Phase I/IIb clinical studies with CAR-T CD19 and CD20 assets to advance our immuno-oncology pipeline. We have a strong balance sheet to finance our current clinical studies and to further expand our translational medicine research and development.”
Operating cash flow remains negative
Cellular Biomedicine Group Inc has spent $12.07 million cash to meet operating activities during the nine month period as against cash outgo of $8.57 million in the last year period. The company has spent $1.65 million cash to meet investing activities during the nine month period as against cash outgo of $5.49 million in the last year period.
Cash flow from financing activities was $43.12 million for the nine month period, up 121.78 percent or $23.68 million, when compared with the last year period.
Cash and cash equivalents stood at $44.12 million as on Sep. 30, 2016, up 119.41 percent or $24.01 million from $20.11 million on Sep. 30, 2015.
Working capital increases sharply
Cellular Biomedicine Group Inc has recorded an increase in the working capital over the last year. It stood at $43.42 million as at Sep. 30, 2016, up 155.73 percent or $26.44 million from $16.98 million on Sep. 30, 2015. Current ratio was at 23.51 as on Sep. 30, 2016, up from 4.60 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 5220 days for the quarter from 179 days for the last year period. Days sales outstanding went up to 5591 days for the quarter compared with 120 days for the same period last year.
Days inventory outstanding has increased to 1276 days for the quarter compared with 85 days for the previous year period. At the same time, days payable outstanding went up to 1647 days for the quarter from 26 for the same period last year.
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