CASI Pharmaceuticals Shares Increase Over 15% Pre-Market: Why It Happened

By Amit Chowdhry ● Aug 23, 2021
  • The shares of CASI Pharmaceuticals, Inc. (Nasdaq: CASI) increased by over 16% pre-market. This is why it happened.

The shares of CASI Pharmaceuticals, Inc. (Nasdaq: CASI) – a U.S. biopharmaceutical company focused on developing and commercializing innovative therapeutics and pharmaceutical products – increased by over 16% pre-market. Investors have been responding positively to a recent SEC filing showing that the company CEO Wei-Wu He acquired a larger position in the company. He bought 300,000 shares at a price of $1.29 and 180,000 shares at a price of $1.26 between August 18 and August 19. 

CASI Pharmaceuticals also reported its second-quarter 2021 financial results on August 12. These are the highlights:

— Revenues consist of product sales of EVOMELA that launched during August 2019. Revenue was $7.1 million for the 3 months ended June 30, 2021 compared to $2.6 million for the 3 months ended June 30, 2020. Revenues increased by 173% in the second quarter of 2021 as compared to the same quarter in 2020 due to the continued growth in EVOMELA sales.

— Costs of revenues were $2.9 million for the 3 months ended June 30, 2021, compared to $2.5 million for the 3 months ended June 30, 2020, which includes royalty payment of $1.4 million and $0.5 million for the same period. Costs of revenues excluding royalty were $1.5 million and $2.0 million for the 3 months ended June 30, 2021, and 2020. Costs of revenues, excluding royalty as a percentage of revenues, decreased significantly in the 3 months ended June 30, 2021, compared within the 3 months ended June 30, 2020, due to the new alternate manufacturer now in place, resulting in a considerable decrease in the unit cost of inventories of EVOMELA.

— General and administrative expenses for the 3 months ended June 30, 2021 were $5.4 million, compared with $4.1 million for the 3 months ended June 30, 2020.

— Selling and marketing expenses for the 3 months ended June 30, 2021 were $3.4 million, compared with $1.6 million for the 3 months ended June 30, 2020. The increase in selling and marketing expenses was due to expansion of sales team in China in 2021.

— Acquired in-process R&D expenses for the 3 months ended June 30, 2021 was $1.06 million, compared to $0 million for the 3 months ended June 30, 2020. In June 2021, the Company achieved the First-Patient-In (FPI) in the Phase 1 dose escalation and expansion study of CID-103, and made $750,000 milestone payment and accrued €250,000 ($305,000) payment under the terms of the agreement.

— Net loss for the 3 months ended June 30, 2021 was $6.7 million compared to $8.5 million for the 3 months ended June 30, 2020 due to significant revenue increase. As of June 30, 2021, CASI had cash and cash equivalents of $60.4 million compared to $57.1 million as of December 31, 2020.

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