Let’s Take a Fresh Look at Acasti Pharma Inc. (NASDAQ: ACST)
Acasti Pharma Inc. stock identified change of 25.16% away from 52-week low price and recently located move of -79.28% off 52-week high price. ACST stock has been recorded -66.43% away from 50 day moving average and -61.16% away from 200 day moving average. Moving closer, we can see that shares have been trading -61.22% off 20-day moving average.
Acasti Pharma Inc (ACST) recently provided a business update and reported its operating and financial results for the second quarter of fiscal 2020 ended September 30, 2019. All amounts are in Canadian dollars.
“Assuming our TRILOGY trials replicate our Phase 2 data, we believe CaPre has the potential to become a best-in-class omega-3, Because of both the Trifecta Effect and greater bioavailability, especially in patients that follow the standard physician-recommended, restricted low-fat diet. We believe these benefits are Because of our exclusive composition of phospholipids, EPA and DHA as contrast to “esterified” pharmaceutical omega-3s derived from fish oils. Additionally, in all studies conducted to date, CaPre has shown no negative side effects or safety concerns.”
“We are also ramping up our commercialization efforts. Most recently, we reported a supply contract with Aker BioMarine to provide raw krill oil (RKO) to Acasti, under a two-year, fixed price supply contract, which we believe will ensure an adequate raw material supply to meet our anticipated needs through at least mid-2021, including scale-up of production to build future inventory for anticipated commercial launch. At the same time, we are in active discussions with a number of pharma companies regarding potential commercialization joint ventures in several countries about the world, and we look forward to providing further updates if and when developments unfold.”
Second Quarter Fiscal 2020 Financial Results:
Loss from operating activities for the second quarter ended September 30, 2019 was $8.7M, contrast to a loss from operating activities of $10.4M for the quarter ended September 30, 2018. The decrease was due in part to a reduction in research contract expenses as the Phase 3 clinical program is getting closer to completions.
Net loss for the quarter ended was $28.3M or ($0.34) per share, contrast to a net loss of $22.7M or ($0.62) per share for the quarter ended September 30, 2018. The higher net loss was primarily Because of the non-cash financial loss of $19.7M for the three months ended September 30, 2019, due mostly to the change in fair value of the warrant derivative liability partially offset by a decrease in the number of warrants.
R&D expenses before depreciation, amortization and stock-based compensation expenses were $4.3M for the quarter ended September 30, 2019, contrast to $8.4M for the three months ended September 30, 2018. The $4.1M decrease was mainly attributable to a $4.6M decrease in research contracts. The lower research contract expense is attributed primarily to the Phase 3 clinical trial program getting closer to completion.
General and Administrative expenses before stock-based compensation expenses were $1.5M for the three months ended September 30, 2019, a raise of $.6M from $.89M for the three months ended September 30, 2018. This increase was mainly attributable to a $.18M increase associated with the Company’s Directors and Officers insurance policy, as well as a raise of $.3M in corporate, accounting and legal fees.
Sales and Marketing expenses before stock-based compensation expenses were $.88M for the three months ended September 30, 2019, contrast to $.13M for the three months ended September 30, 2018. This increase funded additional headcount and marketing expenses for expanded business and market development activities.
Cash flows – Cash and cash equivalents and marketable securities totaled $25.8M as of September 30, 2019, contrast to $5.99M for the quarter ended September 30, 2018. The increase was mainly generated by the net proceeds from the Public Offerings and the recent exercise of warrants. As stated above, Acasti believes that existing cash plus the recent exercise of warrants will fully fund the Company’s operations beyond the completion of our Phase 3 clinical trials through at least June of 2020. Acasti will need to raise additional capital in the future to complete the funding of the preparation and filing of our NDA, and US commercial launch activities. If Acasti does not raise additional funds, it may not be able to realize its assets and discharge its liabilities in the normal course of business. As a result, there exists a material uncertainty about the Acasti’s ability to continue as a going concern and to realize its assets and discharge its liabilities in the normal course of business.
The Healthcare sector company, Acasti Pharma Inc. noticed change of -4.60% to $0.64 along volume of 1849871 shares in recent session compared to an average volume of 4518.73K. ACST’s shares are at -66.05% for the quarter and driving a -41.44% return over the course of the past year and is now at -73.95% since this point in 2018. The average volatility for the week at 7.46% and for month was at 14.79%.