· Appointment of BJ Bormann, Ph.D., to Board of Directors in August 2013
· Appointment of Sandra Panem, Ph.D., to Board of Directors in February 2014
· Successful $24.1 million underwritten public offering in March 2014
“We are very excited to welcome Drs. Bormann and Panem to our Board of Directors. Their combined decades of experience in the healthcare space will help guide the strategy and development of our pipeline from a business, scientific and financial perspective. Together with our recent fundraising, we view both these accomplishments as important steps in the development and growth of our company, as we continue to strengthen our presence in the U.S. financial markets and in the global biopharmaceutical industry. We also look forward with great anticipation to the several significant catalysts coming up over the next 12 months,” concluded Dr. Savitsky.
Financial Results for Year Ended December 31, 2013
Research and development expenses for the year ended December 31, 2013 were NIS 44.1 million ($12.7 million), a decrease of NIS 20.2 million ($5.8 million), or 31%, compared to NIS 64.3 million ($18.5 million) for the year ended December 31, 2012. Without regard to a NIS 6.0 million one-time reversal of amounts previously accrued to the OCS in respect of BL-1020, research and development expenses decreased by NIS 14.2 million ($4.1 million). The decrease resulted primarily from lower expenses in 2013 associated with BL-1020, due to termination of the CLARITY clinical trial in March 2013, which was partially offset by a ramp-up in spending on other clinical-stage projects introduced during 2011 and 2012.
Sales and marketing expenses for the year ended December 31, 2013 were NIS 4.1 million ($1.2 million), an increase of NIS 0.9 million ($0.3 million), or 28%, compared to NIS 3.2 million ($0.9 million) for the year ended December 31, 2012. The increase resulted primarily from increased business development activities, as well as professional services incurred in connection with the collaboration agreement signed with JHL Biotech.
General and administrative expenses for the year ended December 31, 2013 were NIS 13.2 million ($3.8 million), a decrease of NIS 0.8 million ($0.2 million) or 6%, compared to NIS 14.0 million ($4.0 million) for the year ended December 31, 2012. The small decrease resulted primarily from one-time expenses for professional services incurred in 2012.
The Company’s operating loss for the year ended December 31, 2013 amounted to NIS 61.4 million ($17.7 million), compared with an operating loss of NIS 81.6 million ($23.5 million) for the year ended December 31, 2012.
The Company recognized net non-operating income of NIS 4.2 million ($1.2 million) for the year ended December, 2013, an increase of NIS 0.2 million ($0.1 million), compared to net non-operating income of NIS 4.0 million ($1.1 million) for the year ended December 31, 2012. Non-operating income for both periods primarily relates to fair-value adjustments of liabilities on account of warrants. These fair-value adjustments were highly influenced by our share price at each period end (revaluation date).