Healthcare Stocks News Buzz: Aphria Inc. (NYSE:APHA), Advaxis, Inc. (NASDAQ:ADXS)

Shares of Aphria Inc. (NYSE:APHA), inclined 5.17% to $6.92, during its last trading session. Aphria Inc. (NYSE:APHA) opened its trading session at $6.43. During the trading session the minimum price at which share price traded, recorded at $6.39 and share price hit to max level of $7.20. It has market worth of $1.73B. It traded total volume of 16,422,320 shares higher than the average volume of 6.41M shares.

Aphria Inc. (NYSE: APHA) stated its results, for the second quarter ended November 30, 2018 , and the decision by its Chief Executive Officer, Vic Neufeld , and Co-founder Cole Cacciavillani , to transition out of their executive roles over the coming months. Mr. Neufeld and Mr. Cacciavillani will remain in their current roles until such time. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.

Second Quarter Commentary

“In our second quarter, Aphria continued strengthening its position as a premier supplier of medical- and adult-use cannabis to the Canadian market, building long-term competitive advantage and developing key global opportunities,” said Mr. Neufeld.

“This is the first quarter to partially include adult-use sales, helping to drive 63.00 percent quarter-over-quarter net revenue growth, as did continued strength in sales to the medical-use market. As expected, gross margins declined, reflecting lower effective selling prices in the adult-use market, as well as temporarily lower yields and higher production costs in the quarter as we moved aggressively to build out production facilities and implement new automation processes.

“A top priority for Aphria is expanding production and automation to secure our long-term cost and scale advantages. The Part IV and V expansions of Aphria One are now complete and awaiting Health Canada approval, while an application for a cultivation licence at Aphria Diamond has been submitted and is awaiting pre-cultivation inspection. Based on this, we now expect to generate first sales from these new facilities later in the calendar year, pending Health Canada approvals, with our annualized harvest reaching 255,000 kilograms, compared to 35,000 kilograms currently, by the end of calendar 2019.

“In the second quarter we also positioned the Company for long-term growth in key global markets with strategic alliances, targeted investments and disciplined acquisitions. We’re excited to have just closed the previously announced acquisition of CC Pharma, based in Germany , which distributes pharmaceuticals and medical cannabis to over 13,000 pharmacies. This transaction positions Aphria to be a leading player in the European medical cannabis market. We’re equally optimistic about our recently announced alliances and acquisitions of highly strategic licenses and operations in Latin America and the Caribbean’s most attractive emerging cannabis markets, including Colombia , Argentina , Paraguay and Jamaica .

“A strong foundation is critical to sustaining Aphria’s leadership in the global cannabis market and delivering long-term profitable growth. To that end, we finished the quarter with a strong balance sheet and sufficient capital to fund our previously announced plans internationally,’ said Mr. Neufeld.

Key Financial Highlights

Net revenue for the three months ended November 30, 2018 was $21.70M , compared to $13.30M in the prior quarter and $8.50M in the same period last year. Higher revenue in the quarter was driven by a 92.00 percent increase in kilogram equivalents of cannabis sold and an additional $1.60M of non-cannabis international sales. Initial sales in the newly legalized Canadian adult-use market accounted for over 1,900 kilogram equivalents sold. Medical cannabis sales declined marginally from 1,466.2 kilogram equivalents sold in the previous period to 1,443.6 kilogram equivalents sold in the second quarter. Cannabis oil sales, as a 2age of volume, decreased to 19.00 percent of overall sales from 39.00 percent in the prior quarter, reflecting the higher percent of dry bud sold in the adult-use market.

Partly offsetting the positive revenue impact of higher kilogram equivalents sold, average selling price, inclusive of excise tax, declined to $6.54 per gram in the quarter, compared to $7.12 in the prior quarter. As anticipated, this reflected sales to the adult-use market, which had a lower average selling price of $6.32 , inclusive of excise tax, compared to $7.51 in the medical-use market, also inclusive of excise tax.

Adjusted gross profit for the second quarter was $10.20M , with an adjusted gross margin of 470 percent, compared to $8.50M with an adjusted gross margin of 64.00 percent in the prior quarter. Adjusted gross margins declined as expected in the quarter, reflecting lower average selling prices in the adult-use market. In addition, production costs as a percentage of sales temporarily increased and yields decreased as production space was allocated for mother and vegetative plants for the Part IV and Part V expansion of Aphria One.

Selling, general and administrative costs (“SG&A“) in the quarter rose to $27.50M , from $24.10M in the prior quarter and $7.30M in the prior year, primarily due to higher headcount and employee-related costs, following the acquisitions of Nuuvera Inc. and LATAM Holdings, and as a result of investing $2.60M in brand development prior to the implementation of The Cannabis Act. As a percent of net revenue, SG&A declined to 127.00 percent from 1810 percent in the prior quarter, reflecting improved operating leverage on the Company’s growing revenue base.

Net income for the second quarter of 2019 was $54.80M or $0.22 per share, compared to $21.20M or $0.09 per share in the previous period, and $6.50M or $0.05 per share for the same period last year. The increase in net income relates to gains on our long-term investment portfolio, primarily our divestitures of positions in Hiku Brands and Liberty Health Sciences.

Adjusted EBITDA loss from Canadian cannabis operations (previously referred to as ACMPR operations)1 for the second quarter was $6.10M compared to a loss of $0.80M in the prior quarter. Adjusted EBITDA loss from Aphria International for the second quarter was $3.50M compared to adjusted EBTIDA loss from Aphria International of $3.10M in the prior quarter. The increased adjusted EBITDA loss in the second quarter is primarily attributable to temporary increases in production costs, decreases in yields as previously noted, as well as increases in general and administrative expenses undertaken to support the Company’s planned capacity expansions.

In the last 12 months, Aphria Inc. (NYSE:APHA) EPS was booked as $0.15. 7.88% shares of the company were owned by institutional investors. In the profitability analysis, the company has gross profit margin of N/A while net profit margin was N/A. Beta value of the company was N/A; beta is used to measure riskiness of the security.

 

Advaxis, Inc. (NASDAQ:ADXS) displayed a change of -15.56% in final minutes of Friday’s trading session after which it closed the day’ session at $0.30. The general volume in the last trading session was 1,004,005 shares. During the 52-week trading session, the minimum price at which share price traded was registered at $0.18 and reached the max level of $3.30.

Advaxis, Inc. (ADXS) declared its financial results for the fiscal year ended October 31, 2018 and provides a business update.

Fiscal Year 2018 and Recent Key Accomplishments

  • Received U.S. Food and Drug Administration allowance of the Investigational New Drug application for the Company’s first ADXS-HOT off-the-shelf neoantigen drug candidate, ADXS-503, for the treatment of all types of non-small cell lung cancer;
  • Dosed the first patients in the ADXS-NEO Phase 1 dose-escalation study in patients with several solid tumor types;
  • Raised gross proceeds totaling approximately $40.00M from an underwritten public offering of common stock and an underwritten public offering of common stock and warrants;
  • Appointed a permanent chief executive officer, Kenneth A. Berlin, a new chief medical officer, Andres Gutierrez, M.D., and a new chief financial officer, Molly Henderson;
  • Licensed ADXS-HER2 to OS Therapies for evaluation in the treatment of pediatric osteosarcoma;
  • Significantly reduced annual net cash usage through a prioritization of programs and assets; and
  • Presented and published data from several preclinical and clinical trials with the Company’s drug candidates.

Management Commentary

“Fiscal 2018 was an eventful year for Advaxis as we worked to reorganize the company, prioritize our pipeline and define a strategic direction that supports our mission to improve the lives of people suffering from cancer and their loved ones,” said Kenneth A. Berlin, president and chief executive officer of Advaxis. “Our diverse pipeline of drug candidates and constructs at various stages of development is based on our proprietary Lm platform, which has a significant safety database from first-generation constructs already tested in humans.”

Mr. Berlin added, “We are dosing patients under our ADXS-NEO program and anticipate the first patient to be enrolled in our ADXS-503 study within the next several weeks. These are significant accomplishments for the Company and we’re excited to start to see early correlative and safety data from these neoantigen programs during the first half of 2019.”

Mr. Berlin continued, “During the second half of fiscal year 2018 we took steps to significantly reduce our cash burn and align our spending in keeping with a company our size. We are committed to advancing our various clinical programs as rapidly and cost effectively as possible throughout fiscal year 2019. We also continue to evaluate opportunities for partnerships and collaborations across all of our programs, and anticipate several catalysts for the Company in 2019. We remain committed to demonstrating that the drug candidates emanating from our Lm platform have the potential to positively impact people with cancer,” Mr. Berlin concluded.

Balance Sheet Highlights

As of October 31, 2018, Advaxis had cash and cash equivalents of $44.10M. The Company used $62.10M in cash to fund operations during fiscal 2018, mainly attributed to funding research and development and general and administrative activities. Throughout fiscal 2018, the Company completed an in-depth review of all programs and cash expenditures, and reduced its net annual cash usage to approximately $50.00M.

Fiscal Year 2018 Financial Information

Research and development expenses for fiscal 2018 were $57.00M, compared with $70.50M for fiscal 2017The $13.50M decrease was primarily attributable to a decrease in laboratory costs, drug manufacturing process validation and drug stability studies.

General and administrative expenses for fiscal 2018 were $19.50M, compared with $40.00M for fiscal 2017. The $20.50M decrease was primarily attributable to an $18.00M decrease in stock-based compensation expense.

The net loss for the fiscal year ended October 31, 2018 was $66.50M or $1.29 per share based on 51.50M weighted average shares outstanding. This compares with a net loss for fiscal 2017 of $93.40M or $2.31 per share based on 40.50M weighted average shares outstanding.

ADXS’s Performance breakdown (SMA20, SMA50 & SMA200): 

ADXS (NASDAQ:ADXS) has seen its SMA20 which is now 11.89%. In looking the SMA 50 we see that the stock has seen a -25.03% while it has a distance of -74.46% from the 200 days simple moving average.

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