DURHAM, North Carolina, Nov. 14, 2022 (GLOBE NEWSWIRE) — NightHawk Biosciences (US NYSE: NHWK)a fully integrated biopharmaceutical company focused on developing innovative therapies to modulate the immune system, today provided strategic, financial and operational updates for the third quarter ended September 30, 2022.
Jeff Wolf, CEO of NightHawk, said, “We continue to advance our biodefense and biomanufacturing efforts within our Elusys and Scorpion subsidiaries. To that end, we are making substantial investments in our biomanufacturing capabilities, including our Scorpion San Antonio biologics manufacturing facility, as well as our planned biomanufacturing facility in Manhattan, Kansas.
Mr. Wolf continued, “Given our shifting priorities, we are de-prioritizing our oncology programs and halting the development of our clinical-stage oncology assets, including HS-110 and PTX-35. , to focus on our biomanufacturing efforts and the discovery, development, and commercialization of innovative medical countermeasures to combat unmet and emerging biological threats.
Mr. Wolf added, “During the quarter, we also recognized $6 million of one-time revenue, related to the sale of ANTHIM® to Canada’s National Emergency Strategic Stockpile, with 80% of this revenue expected to be paid to former Elusys shareholders as part of the initial purchase price. Nonetheless, we believe this validates our strategic decision to acquire Elusys earlier this year.
Third quarter 2022 financial results
- Recognized $6.0 million in revenue for the quarter ended September 30, 2022, which included $5.98 million in product sales revenue, $0.06 million in contract revenue and no CPRIT grant revenue . For the three months ended September 30, 2021, we recognized $0.5 million in grant revenue for eligible expenses under the CPRIT grant. The increase in product sales revenue is due to the sale of ANTHIM to the Canadian government. The decrease in grant revenue in the current year period is due to us recognizing all $15.2 million in CPRIT grant revenue. As of September 30, 2022, we had a grant balance receivable of $1.5 million for CPRIT products not yet received, but for which costs have been incurred or award conditions have been met. We continue our efforts to secure future non-dilutive funding to subsidize ongoing research and development costs.
- Cost of product sales for the three months ended September 30, 2022 was $6.4 million. No product sales were recorded for the quarter ended September 30, 2021. The increase is due to the cost of sales related to the sale of ANTHIM to Canada’s National Emergency Strategic Stockpile. The cost of sales was $5.9 million in inventory, $0.3 million in pre-acquisition backlog, $0.2 million in shipping and fulfillment, and $0.01 million dollars in royalty fees.
- Research and development expenses increased to $6.9 million for the quarter ended September 30, 2022 from $4.4 million for the quarter ended September 30, 2021.
- General and administrative expenses were $5.1 million and $3.4 million for the three months ended September 30, 2022 and 2021, respectively. The increase is mainly due to higher personnel costs, as well as higher consulting and professional fees, offset by a decrease in stock-based compensation expense of $0.2 million.
- Net loss attributable to NightHawk Biosciences was approximately $13.0 million, or ($0.51) per basic and diluted share for the three months ended September 30, 2022, compared to approximately $7.4 million , or ($0.30) per basic and diluted share for the three months ended September 30, 2022. September 30, 2021.
- As of September 30, 2022, the Company had approximately $57.4 million in cash and cash equivalents and short-term investments.
NightHawk Biosciences, Inc.
NightHawk Biosciences is a fully integrated biopharmaceutical company focused on the discovery and commercialization of innovative medical countermeasures to defend against emerging biological threats. The Company leverages its integrated ecosystem of subsidiaries to streamline the advancement of new therapies, breaking down the barriers that prolong the development of traditional drugs. This allows us to bring our ideas to life with efficient control, superior quality and unusual agility.
For more information about the company and its subsidiaries, please visit: www.nighthawkbio.com, and also follow us on Twitter.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some instances, forward-looking statements may be identified by words such as “may”, “should”, “potential”, “continuing”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” and similar expressions, and includes statements such as continued progress in our biodefense efforts and biomanufacturing through our subsidiaries Elusys and Scorpion’s planned biomanufacturing facility in Manhattan, Kansas and sale to Canada’s National Emergency Strategic Stockpile being validation of NightHawk’s strategic decision to acquire Elusys earlier this year. Important factors that could cause actual results to differ materially from current expectations include, among others, the ability to continue to progress our biodefense and biomanufacturing efforts through our subsidiaries Elusys and Scorpion, the ability to successfully integrate Elusys and expand ANTHIM® distribution overseas, NightHawk’s ability to begin operations in Kansas when expected and successfully operate as a CDMO in San Antonio and Kansas, the ability of NightHawk and its subsidiaries to maintain licensing agreements, continued maintenance and growth of NightHawk and its subsidiaries’ patents, NightHawk’s product candidates demonstrating safety and efficacy, and results consistent with prior results , the ability to initiate clinical trials and, if initiated, the ability to complete them on time and achieve the desired results and benefits, the ability cited to obtain regulatory approval for commercialization of product candidates or to comply with pending regulatory requirements, regulatory limitations on NightHawk’s ability to promote or commercialize its product candidates for specific indications, acceptance product candidates in the market and the successful development, marketing or sale of NightHawk’s products, developments by competitors that render such products obsolete or uncompetitive, and other factors described in NightHawk’s annual report on Form 10-K for the fiscal year ended December 31, 2021, subsequent quarterly reports on Form 10-Qs, and any other filings made by NightHawk with the SEC. The information in this presentation is provided only as of the date presented, and NightHawk undertakes no obligation to update any forward-looking statements contained in this presentation as a result of new information, future events or otherwise, except as required by law. ‘required.
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