Canada's Edesa Biotech Q3 loss widens on higher R&D costs
Canada's Edesa Biotech Q3 loss widens on higher R&D costs
Overview
Canada biopharmaceutical firm's Q3 operating expenses rose sharply, driven by Phase 2 vitiligo study prep
Q3 net loss widened year-over-year, reflecting higher research and development spending
Company began activating sites for Phase 2 vitiligo study after quarter-end
Outlook
Company expects EB06 Phase 2 patient recruitment to begin in Canada in coming weeks
Edesa prioritizing execution of EB06 Phase 2 study and supporting paridiprubart development
Company spending expected to shift toward clinical trial execution for EB06 study
Result Drivers
R&D SPENDING SHIFT - Higher research and development expenses were mainly due to manufacturing and preparation costs for the planned Phase 2 EB06 clinical study in vitiligo patients, partially offset by lower spending on the paridiprubart program
ADMINISTRATIVE COSTS - General and administrative expenses rose due to increased noncash share-based compensation and professional fees
LOWER GRANT FUNDING - Decrease in government reimbursement funding reduced other income
Company press release: ID:nGNX6PSTTC
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Loss Per Share |
| $0.60 |
|
Q3 Net Loss |
| $5.40 mln |
|
Q3 Operating Expenses |
| $5.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the biotechnology & medical research peer group is "buy"
Wall Street's median 12-month price target for Edesa Biotech Inc is $19.00, about 258.5% above its August 12 closing price of $5.30
Reuters Recommended Reads
Aug 11 - Canada's Eupraxia Q2 net loss widens on higher R&D costs
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Aug 11 - Canada's Cipher Pharma Q2 revenue falls on lower Natroba sales amid reduced Medicaid coverage
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)