The oncology-focused clinical-stage biopharmaceutical company, Calithera Biosciences Inc. (CALA) has been trodden down since its IPO. Falling by over 83.84% last year, 2022 has been no different so far. The current year’s losses have extended to nearly 40% until now. Added to this the most recent events and happenings have only pushed the stock further down to report new low upon new low. While CALA was already in a downward spiral on the $10.0 million public offering of the company, the following earnings report plunged it further down.
The company declared its year-end and Q4 earnings on March 31, 2022, after the bell. Consequently, the stock recorded its latest low of $0.3610 in the after-hours session on Thursday. This 10.64% downward move came after a slight uptrend of 3.91% in regular trading. Despite being in the green during the prior session, CALA had reported its low of $0.3650 in the session.
What’s Going on with the Earnings?
In spite of the company’s progress in 2021 with its clinical development programs and acquisitions, the financial results were still unimpressive.
Due to payments under its collaboration with Incyte and Antengene, the company generated revenue of $9.8 million in fiscal 2021. Given that the agreements were undertaken only in 2021, the company had no revenue output in 2020.
While the G&A expenses almost remained the same with $20.9 million for 2021 and $20.4 million for 2020, the R&D expenses marked a stark difference. Thus, the yearly R&D expenditures were $53.4 million for 2021 while those related to asset acquisition were $50.9 million. Comparatively, the 2020 R&D expenses were $71.0 million. The decline in R&D expenses in 2021 was a result of the discontinuation of certain clinical trials that failed to prove clinical benefits.
Moreover, CALA’s net loss was $115.1 million in the year while the interest and other income declined to $0.3 million. The comparable period had interest and other income of $1.3 million.
Offering of Stocks and Warrants
Commenced on March 29, the company’s latest public offering is expected to close on April 1 with gross proceeds of $10.0 million. The underwritten offering includes 18,518,519 CALA stock shares at a price of $0.54 a share to the public. Furthermore, each of the company’s common stock shares is accompanied by a warrant/short-term warrant for common stock.
What’s in the Cards?
So far the company’s near further does not give any promising hope with its intermediate and long-term prices both marked red. But this does not mean CALA is doomed to fail as the next earnings and performance might just be better.