GAMIDA CELL LTD.
|
||
August 7, 2019
|
By:
|
/s/ Shai Lankry
|
Shai Lankry
|
||
Chief Financial Officer
|
Exhibit
No.
|
Description
|
|
Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2019 and June 30, 2018, and Unaudited Interim Consolidated Statements of Comprehensive Income, Statements of Changes in Shareholders
’
Equity and Statements of Cash Flows for the six months ended June 30, 2019 and June 30, 2018
|
||
Press Release, dated August 6, 2019 Gamida Cell Reports Second Quarter 2019 Financial Results and Provides Company Update
|
||
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Interim Consolidated Statements of Financial Position, (ii) Interim Consolidated Statements of Comprehensive Income, (iii) Interim Consolidated Statements of Changes in
Shareholders’ Equity, (iv) Interim Consolidated Statements of Cash Flows, and (v) the Notes to Interim Consolidated Financial Statements
|
Page
|
|
Interim Consolidated Statements of Financial Position
|
2 - 3
|
Interim Consolidated Statements of Comprehensive Loss
|
4
|
Interim Consolidated Statements of Changes in Equity
|
5 – 7
|
Interim Consolidated Statements of Cash Flows
|
8 - 9
|
Notes to Interim Consolidated Financial Statements
|
10 - 17
|
August 5, 2019
|
/s/ Julian Adams
|
/s/ Shai Lankry
|
||
Date of approval of the
|
Julian Adams
|
Shai Lankry
|
||
financial statements
|
Director and CEO
|
Chief Financial Officer
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2018
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Research and development, net
|
$
|
14,319
|
$
|
12,037
|
$
|
7,036
|
$
|
6,977
|
$
|
22,045
|
||||||||||
General and administrative
|
7,574
|
4,570
|
3,761
|
2,917
|
11,599
|
|||||||||||||||
Operating loss
|
21,893
|
16,607
|
10,797
|
9,894
|
33,644
|
|||||||||||||||
Finance expenses
|
1,604
|
4,204
|
1,336
|
3,230
|
20,259
|
|||||||||||||||
Finance expenses (income)
|
(14,052
|
)
|
(330
|
)
|
(18,169
|
)
|
(34
|
)
|
(1,042
|
)
|
||||||||||
Loss (income) before taxes on income
|
9,445
|
20,481
|
(6,036
|
)
|
13,090
|
52,861
|
||||||||||||||
Taxes on income
|
100
|
-
|
74
|
-
|
70
|
|||||||||||||||
Net loss (income)
|
9,545
|
20,481
|
(5,962
|
)
|
13,090
|
52,931
|
||||||||||||||
Other comprehensive loss (income):
|
||||||||||||||||||||
Items that will be reclassified subsequently to profit or loss:
|
||||||||||||||||||||
Actuarial net loss of defined benefit plans
|
83
|
-
|
-
|
-
|
(2
|
)
|
||||||||||||||
Changes in the fair value of available for sale financial assets
|
(42
|
)
|
135
|
(9
|
)
|
86
|
9
|
|||||||||||||
Total comprehensive loss (income)
|
$
|
9,586
|
$
|
20,616
|
$
|
(5,971
|
)
|
$
|
13,176
|
$
|
52,938
|
|||||||||
Net loss (income) per share:
|
||||||||||||||||||||
Basic net loss (income) per share
|
$
|
0.38
|
$
|
29.69
|
$
|
(0.23
|
)
|
$
|
18.97
|
$
|
10.53
|
|||||||||
Diluted net loss (income) per share
|
$
|
0.87
|
$
|
29.69
|
$
|
0.44
|
$
|
18.97
|
$
|
10.53
|
Ordinary shares
|
Preferred shares
|
Share
|
Available-for-
sale
|
Capital
reserve due
to actuarial
|
Accumulated
|
Total
|
||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
premium
|
reserve
|
losses
|
deficit
|
equity
|
||||||||||||||||||||||||||||
Balance as of January 1, 2019 (audited)
|
24,930,736
|
$
|
67
|
-
|
$
|
-
|
$
|
193,953
|
$
|
(43
|
)
|
$
|
(77
|
)
|
$
|
(169,213
|
)
|
$
|
24,687
|
|||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(9,545
|
)
|
(9,545
|
)
|
|||||||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
42
|
(83
|
)
|
-
|
(41
|
)
|
|||||||||||||||||||||||||
Total comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
42
|
(83
|
)
|
(9,545
|
)
|
(9,586
|
)
|
||||||||||||||||||||||||
Exercise of options
|
466,375
|
1
|
-
|
-
|
116
|
-
|
-
|
-
|
117
|
|||||||||||||||||||||||||||
Exercise of warrants
|
209,312
|
1
|
-
|
-
|
2,923
|
-
|
-
|
-
|
2,924
|
|||||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
2,410
|
-
|
-
|
-
|
2,410
|
|||||||||||||||||||||||||||
Balance as of June 30, 2019 (unaudited)
|
25,606,423
|
$
|
69
|
-
|
$
|
-
|
$
|
199,402
|
$
|
(1
|
)
|
$
|
(160
|
)
|
$
|
(178,758
|
)
|
$
|
20,552
|
Ordinary shares
|
Preferred shares
|
Share
|
Available-for-
sale
|
Capital
reserve due
to actuarial
|
Accumulated
|
Total
|
||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
premium
|
reserve
|
losses
|
deficit
|
equity
|
||||||||||||||||||||||||||||
Balance as of January 1, 2018 (audited)
|
689,898
|
$
|
2
|
14,154,743
|
$
|
38
|
$
|
139,311
|
$
|
(34
|
)
|
$
|
(79
|
)
|
$
|
(116,282
|
)
|
$
|
22,956
|
|||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(20,481
|
)
|
(20,481
|
)
|
|||||||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(135
|
)
|
-
|
-
|
(135
|
)
|
|||||||||||||||||||||||||
Total comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(135
|
)
|
-
|
(20,481
|
)
|
(20,616
|
)
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
1,623
|
-
|
-
|
-
|
1,623
|
|||||||||||||||||||||||||||
Balance as of June 30, 2018 (unaudited)
|
689,898
|
$
|
2
|
14,154,743
|
$
|
38
|
$
|
140,934
|
$
|
(169
|
)
|
$
|
(79
|
)
|
$
|
(136,763
|
)
|
$
|
3,963
|
Ordinary shares
|
Preferred shares
|
Share
|
Available-for-
sale
|
Capital
reserve due
to actuarial
|
Accumulated
|
Total
|
||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
premium
|
reserve
|
losses
|
deficit
|
equity
|
||||||||||||||||||||||||||||
Balance as of April 1, 2019 (unaudited)
|
25,140,048
|
$
|
68
|
-
|
$
|
-
|
$
|
197,967
|
$
|
(10
|
)
|
$
|
(160
|
)
|
$
|
(184,720
|
)
|
$
|
13,145
|
|||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5,962
|
5,962
|
|||||||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
9
|
-
|
-
|
9
|
|||||||||||||||||||||||||||
Total comprehensive income
|
-
|
-
|
-
|
-
|
-
|
9
|
-
|
5,962
|
5,971
|
|||||||||||||||||||||||||||
Exercise of options
|
466,375
|
1
|
-
|
-
|
116
|
-
|
-
|
-
|
117
|
|||||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
1,319
|
-
|
-
|
-
|
1,319
|
|||||||||||||||||||||||||||
Balance as of June 30, 2019 (unaudited)
|
25,606,423
|
$
|
69
|
-
|
$
|
-
|
$
|
199,402
|
$
|
(1
|
)
|
$
|
(160
|
)
|
$
|
(178,758
|
)
|
$
|
20,552
|
Ordinary shares
|
Preferred shares
|
Share
|
Available-for-
sale
|
Capital
reserve due
to actuarial
|
Accumulated
|
Total
|
||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
premium
|
reserve
|
losses
|
deficit
|
equity
|
||||||||||||||||||||||||||||
Balance as of April 1, 2018 (unaudited)
|
689,898
|
$
|
2
|
14,154,743
|
$
|
38
|
$
|
140,155
|
$
|
(83
|
)
|
$
|
(79
|
)
|
$
|
(123,673
|
)
|
$
|
16,360
|
|||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(13,090
|
)
|
(13,090
|
)
|
|||||||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(86
|
)
|
-
|
-
|
(86
|
)
|
|||||||||||||||||||||||||
Total comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(86
|
)
|
-
|
(13,090
|
)
|
(13,176
|
)
|
||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
779
|
-
|
-
|
-
|
779
|
|||||||||||||||||||||||||||
Balance as of June 30, 2018 (unaudited)
|
689,898
|
$
|
2
|
14,154,743
|
$
|
38
|
$
|
140,934
|
$
|
(169
|
)
|
$
|
(79
|
)
|
$
|
(136,763
|
)
|
$
|
3,963
|
Ordinary shares
|
Preferred shares
|
Share
|
Available-for-
sale
|
Capital
reserve due
to actuarial
|
Accumulated
|
Total
|
||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
premium
|
reserve
|
losses
|
deficit
|
equity
|
||||||||||||||||||||||||||||
Balance as of January 1, 2018 (audited)
|
689,898
|
$
|
2
|
14,154,743
|
$
|
38
|
$
|
139,311
|
$
|
(34
|
)
|
$
|
(79
|
)
|
$
|
(116,282
|
)
|
$
|
22,956
|
|||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(52,931
|
)
|
(52,931
|
)
|
|||||||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(9
|
)
|
2
|
-
|
(7
|
)
|
|||||||||||||||||||||||||
Total comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(9
|
)
|
2
|
(52,931
|
)
|
(52,938
|
)
|
||||||||||||||||||||||||
Issuance of additional preferred shares following Anti-dilution Protection
|
-
|
-
|
3,134,546
|
8
|
(8
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
Exercise of options
|
9,692
|
-
|
-
|
-
|
2
|
-
|
-
|
-
|
2
|
|||||||||||||||||||||||||||
Conversion of preferred shares
|
17,289,289
|
46
|
(17,289,289
|
)
|
(46
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Issuance of ordinary shares in initial public offering, net of issuance expenses in an amount of $5,947
|
6,648,368
|
18
|
-
|
-
|
47,223
|
-
|
-
|
-
|
47,241
|
|||||||||||||||||||||||||||
Exercise of warrants
|
293,489
|
1
|
-
|
-
|
3,850
|
-
|
-
|
-
|
3,851
|
|||||||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
-
|
3,575
|
-
|
-
|
-
|
3,575
|
|||||||||||||||||||||||||||
Balance as of December 31, 2018 (audited)
|
24,930,736
|
$
|
67
|
-
|
$
|
-
|
$
|
193,953
|
$
|
(43
|
)
|
$
|
(77
|
)
|
$
|
(169,213
|
)
|
$
|
24,687
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2018
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||
Net (loss) income
|
$
|
(9,545
|
)
|
$
|
(20,481
|
)
|
$
|
5,962
|
$
|
(13,090
|
)
|
$
|
(52,931
|
)
|
||||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||||||||||
Adjustments to the profit or loss items:
|
||||||||||||||||||||
Depreciation of property, plant and equipment and right-of-use assets
|
1,245
|
97
|
703
|
48
|
269
|
|||||||||||||||
Financial income, net
|
(569
|
)
|
(375
|
)
|
(378
|
)
|
(362
|
)
|
(858
|
)
|
||||||||||
Cost of share-based compensation
|
2,410
|
1,623
|
1,319
|
779
|
3,575
|
|||||||||||||||
Change in employee benefit liabilities, net
|
8
|
17
|
(3
|
)
|
33
|
(15
|
)
|
|||||||||||||
Amortization of premium on available-for-sale financial assets
|
101
|
(9
|
)
|
51
|
(90
|
)
|
272
|
|||||||||||||
Revaluation of financial derivatives
|
(13,471
|
)
|
3,400
|
(17,378
|
)
|
3,000
|
17,600
|
|||||||||||||
Revaluation of liability to IIA
|
1,199
|
2,600
|
631
|
2,188
|
2,037
|
|||||||||||||||
(9,077
|
)
|
7,353
|
(15,055
|
)
|
5,596
|
22,880
|
||||||||||||||
Changes in asset and liability items:
|
||||||||||||||||||||
Decrease (Increase) in prepaid expenses and other current assets and other assets
|
117
|
(1,156
|
)
|
(292
|
)
|
(1,256
|
)
|
942
|
||||||||||||
Increase (decrease) in trade payables
|
244
|
(1,232
|
)
|
1,088
|
306
|
(405
|
)
|
|||||||||||||
Increase in accrued expenses and other payables and employee and payroll accrual
|
162
|
1,871
|
141
|
1,611
|
2,296
|
|||||||||||||||
523
|
(517
|
)
|
937
|
661
|
2,833
|
|||||||||||||||
Cash received during the period for:
|
||||||||||||||||||||
Interest received
|
830
|
391
|
309
|
378
|
792
|
|||||||||||||||
Interest paid
|
(51
|
)
|
-
|
(23
|
)
|
-
|
-
|
|||||||||||||
779
|
391
|
286
|
378
|
792
|
||||||||||||||||
Net cash used in operating activities
|
(17,320
|
)
|
(13,254
|
)
|
(7,870
|
)
|
(6,455
|
)
|
(26,426
|
)
|
||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Purchase of property and equipment
|
(878
|
)
|
(703
|
)
|
(528
|
)
|
(472
|
)
|
(1,645
|
)
|
||||||||||
Purchase of of available-for-sale financial assets
|
-
|
-
|
-
|
-
|
(10,905
|
)
|
||||||||||||||
Proceed from sale of available-for-sale financial assets
|
-
|
4,984
|
-
|
-
|
4,949
|
|||||||||||||||
Proceed from maturity of available-for-sale financial assets
|
15,740
|
-
|
1,847
|
-
|
-
|
|||||||||||||||
Proceeds from bank deposits
|
-
|
5,000
|
-
|
-
|
5,000
|
|||||||||||||||
Investment in restricted bank deposits
|
-
|
-
|
-
|
-
|
(150
|
)
|
||||||||||||||
Net cash provided by (used in) investing activities
|
14,862
|
9,281
|
1,319
|
(472
|
)
|
(2,751
|
)
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2018
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Receipt of grants from the IIA
|
167
|
1,653
|
167
|
-
|
612
|
|||||||||||||||
Proceeds from issuance of shares, net
|
(346
|
)
|
-
|
(108
|
)
|
-
|
47,479
|
|||||||||||||
Payment of lease liabilities
|
(764
|
)
|
-
|
(324
|
)
|
-
|
-
|
|||||||||||||
Exercise of options
|
117
|
-
|
117
|
-
|
2
|
|||||||||||||||
Net cash provided by (used in) financing activities
|
(826
|
)
|
1,653
|
(148
|
)
|
-
|
48,093
|
|||||||||||||
Exchange differences on balances of cash and cash equivalents
|
90
|
-
|
28
|
-
|
31
|
|||||||||||||||
Increase (decrease) in cash and cash equivalents
|
(3,194
|
)
|
(2,321
|
)
|
(6,671
|
)
|
(6,927
|
)
|
18,947
|
|||||||||||
Cash and cash equivalents at beginning of period
|
40,272
|
21,325
|
43,749
|
25,931
|
21,325
|
|||||||||||||||
Cash and cash equivalents at end of period
|
$
|
37,078
|
$
|
19,004
|
$
|
37,078
|
$
|
19,004
|
$
|
40,272
|
||||||||||
Supplemental disclosure of non-cash financing activities:
|
||||||||||||||||||||
Significant non-cash transactions:
|
||||||||||||||||||||
IIA liability for grants to be received
|
$
|
-
|
$
|
264
|
$
|
-
|
$
|
133
|
$
|
-
|
||||||||||
Exercise of warrants liabilities to equity
|
$
|
2,924
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,851
|
||||||||||
Increase in other assets on credit
|
$
|
(592
|
)
|
$
|
(791
|
)
|
$
|
(592
|
)
|
$
|
(791
|
)
|
$
|
(238
|
)
|
|||||
Purchase of property, plant and equipment on credit
|
$ | (400 | ) |
$
|
-
|
$ | (400 | ) | $ |
-
|
$ |
-
|
NOTE 1:- |
GENERAL
|
|
a. |
Gamida Cell Ltd. (the "Company"), founded in 1998, is a clinical-stage biopharmaceutical company that develops novel curative treatments for orphan indications, including hematological malignancies and rare genetic diseases using
stem cells and Natural Killer (NK) cells.
|
|
b. |
The Company uses its proprietary platform NAM technology to expand in culture, highly functional cells derived from umbilical cord blood or peripheral blood, while enhancing the potential therapeutic efficacy of these cells.
|
NOTE 1:- |
GENERAL (Cont.)
|
|
c. |
The Company is devoting substantially all of its efforts toward research and development activities. In the course of such activities, the Company has sustained operating losses and expects such losses to continue in the foreseeable
future. The Company's accumulated deficit as of June 30, 2019 is $178,758 and negative cash flows from operating activities during the six month period ended June 30, 2019 is $17,320. These conditions raise substantial doubt about the
Company's ability to continue as a going concern. The interim consolidated financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that would result if the Company was
unable to continue as a going concern. The Company requires additional financing in order to continue to fund its current operations and pay existing and future liabilities.
|
|
d. |
On July 1, 2019, subsequent to the reporting date, the Company closed a follow-on offering ("offering") of its ordinary shares on the Nasdaq, which resulted in the sale of 7,000,000 ordinary shares at a public offering price of $5
per share, before underwriting discounts. The underwriters had a 30-day option to purchase up to 1,050,000 additional shares at a public offering price of $5 per share, and exercised in full their option to purchase an additional
1,050,000 ordinary shares at the public offering price of $5.00 per share. The exercise of the underwriters’ option closed on July 8, 2019. The Company received net proceeds from the offering of $37,135 (net of issuance costs and
underwriting discounts of $3,115).
|
e.
|
Definitions:
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES
|
|
a. |
The accompanying unaudited interim consolidated financial statements for the six and three months periods ended June 30, 2019 and 2018 have been prepared in accordance with IAS 34 "Interim Financial Reporting" for interim financial
information.
|
|
b. |
The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the company's annual consolidated financial statements for the year ended
December 31, 2018, except for the adoption of new standards effective as of January 1, 2019. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
|
|
c. |
IFRS 16 - Leases:
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
•
|
Right-of-use assets of $7,106 were recognized and presented separately in the statement of financial position.
|
•
|
Additional lease liabilities of $7,032 were recognized and presented separately in the statement of financial position.
|
•
|
Prepaid expenses and other current assets of $256 and accrued expenses and other payables of $182 related to previous operating leases were derecognized.
|
Right-of-use assets
|
||||||||||||||||||||
Offices
and labs
|
Vechicles
|
Production
Plant
|
Total
|
Lease
liabilities
|
||||||||||||||||
As of January 1, 2019 (audited)
|
$
|
2,104
|
$
|
291
|
$
|
4,711
|
$
|
7,106
|
$
|
7,032
|
||||||||||
Depreciation expenses
|
(588
|
)
|
(67
|
)
|
(438
|
)
|
(1,093
|
)
|
-
|
|||||||||||
Interest expenses
|
-
|
-
|
-
|
-
|
211
|
|||||||||||||||
Re-measurement
|
-
|
2
|
56
|
58
|
58
|
|||||||||||||||
Additions
|
-
|
86
|
-
|
86
|
86
|
|||||||||||||||
Payments
|
-
|
-
|
-
|
-
|
(815
|
)
|
||||||||||||||
As of June 30, 2019 (unaudited)
|
1,516
|
312
|
4,329
|
6,157
|
6,572
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
Operating lease commitments as of December 31, 2018
|
$
|
7,441
|
||
Weighted average incremental borrowing rate as of January 1, 2019 (%)
|
1.45-4.01
|
|||
Discounted operating lease commitments of January 1, 2019
|
7,032
|
|||
Lease liabilities as of January 1, 2019
|
$
|
7,032
|
NOTE 3:- |
SHARE-BASED PAYMENT
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2018
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Research and development
|
$
|
593
|
$
|
627
|
$
|
364
|
$
|
145
|
$
|
705
|
||||||||||
General and administrative
|
1,817
|
996
|
955
|
634
|
2,870
|
|||||||||||||||
$
|
2,410
|
$
|
1,623
|
$
|
1,319
|
$
|
779
|
$
|
3,575
|
June 30,
|
December 31,
|
|||||||||||
2019
|
2018
|
2018
|
||||||||||
Unaudited
|
Audited
|
|||||||||||
Dividend yield (%)
|
0
|
0
|
0
|
|||||||||
Expected volatility of the share prices (%)
|
88%-95
|
%
|
89%-94
|
%
|
93%-95
|
%
|
||||||
Risk-free interest rate (%)
|
2.52-2.7
|
2.28-3
|
2.88-2.63
|
NOTE 3:- |
SHARE-BASED PAYMENT (Cont.)
|
Six months ended
June 30,
|
Year ended
December 31,
|
|||||||||||||||||||||||
2019
|
2018
|
2018
|
||||||||||||||||||||||
|
Number of
options
|
Weighted
average
exercise
price
|
Number of
options
|
Weighted
average
exercise
price
|
Number of
options
|
Weighted
average
exercise
price
|
||||||||||||||||||
Outstanding at beginning of period
|
3,197,616
|
$
|
3.07 |
2,467,023
|
$
|
2.28 |
2,467,023
|
$
|
2.28 | |||||||||||||||
Granted
|
544,800
|
10.93
|
401,921
|
4.9
|
751,977
|
5.60
|
||||||||||||||||||
Expired
|
-
|
-
|
-
|
-
|
(2,000
|
)
|
6.00
|
|||||||||||||||||
Exercised
|
(466,375
|
)
|
0.25
|
-
|
-
|
(9,692
|
)
|
0.25
|
||||||||||||||||
Forfeited
|
-
|
-
|
(9,692
|
)
|
0.25
|
(9,692
|
)
|
0.25
|
||||||||||||||||
Share options outstanding at end of period
|
3,276,041
|
4.78
|
2,859,252
|
2.65
|
3,197,616
|
3.07
|
||||||||||||||||||
|
||||||||||||||||||||||||
Share options exercisable at end of period
|
1,438,658
|
$
|
2.16 |
1,664,152
|
$
|
1.08
|
1,705,256
|
$
|
1.21 |
NOTE 4:- |
LIABILITIES PRESENTED AT FAIR VALUE
|
|
a. |
Warrants to purchase Company's shares:
|
June 30,
|
December 31,
|
|||||||||||
2019
|
2018
|
2018
|
||||||||||
Unaudited
|
Audited
|
|||||||||||
Risk-free interest rate
|
1.71
|
%
|
2.5
|
%
|
2.52
|
%
|
||||||
Expected volatility
|
80
|
%
|
90
|
%
|
80
|
%
|
||||||
Expected life (in years)
|
3
|
2
|
3.5
|
|||||||||
Expected dividend yield
|
0
|
0
|
0
|
NOTE 4:- |
LIABILITIES PRESENTED AT FAIR VALUE (Cont.)
|
|
b. |
Changes in the fair value of warrants classified as Level 3 in the fair value hierarchy:
|
Fair value
of financial
derivatives
|
||||
Balance at January 1, 2019 (audited)
|
$
|
24,049
|
||
Exercise of warrants
|
(2,924
|
)
|
||
Revaluation of financial derivatives
|
(13,471
|
)
|
||
Balance at June 30, 2019 (unaudited)
|
$
|
7,654
|
NOTE 5:- |
LOSS (INCOME) PER SHARE
|
|
a. |
Details of the number of shares and loss (income) used in the computation of loss (income) per share:
|
Six months ended
June 30, 2019
|
Three months ended
June 30, 2019
|
|||||||||||||||
Weighted
Number of
Shares
|
Loss
(Income)
Attributed
to equity
holders of
the
Company
|
Weighted
Number of
Shares
|
Loss
(Income)
Attributed
to equity
holders of
the
Company
|
|||||||||||||
For the computation of basic loss (income)
|
25,268,501
|
$
|
9,545
|
25,495,236
|
$
|
(5,962
|
)
|
|||||||||
Effect of potential dilutive ordinary shares (Warrants)
|
1,078,165
|
13,471
|
476,457
|
17,378
|
||||||||||||
For the computation of diluted loss (income)
|
26,346,666
|
$
|
23,016
|
25,971,693
|
$
|
11,416
|
|
b. |
The total weighted number of shares that used for the basic and diluted loss per share calculations, for the six and three month period ended June 30, 2018 was 689,898 and for the year ended December 31, 2018 was 5,025,213.
|
• |
Continued to advance the Phase 3 clinical study of omidubicel:
Patient enrollment continued to progress in the Gamida Cell’s Phase 3 study of omidubicel in patients with high-risk
hematologic malignancies. The international, randomized, multi-center study is designed to evaluate the safety and efficacy of omidubicel compared to standard umbilical cord blood for allogeneic bone marrow transplant in
approximately 120 patients with no available matched donor. The company anticipates completing patient enrollment by the end of this year with topline data anticipated in first half of 2020.
|
• |
Established agreements to support commercial manufacturing for omidubicel:
In June, Gamida Cell and Lonza announced that the companies entered into a strategic manufacturing agreement
for the future commercial production after potential FDA approval of omidubicel. This agreement follows a successful multi-year clinical manufacturing relationship and provides Gamida Cell with a
path to commercial supply of omidubicel. Under this multi-year agreement, Lonza will construct and dedicate production suites at its Geleen, NL site for the anticipated commercial launch. Additionally, the agreement enables Gamida
Cell to increase the number of dedicated production suites over time to ensure commercial supply. Gamida Cell also has the option of expanding further into Lonza's global cell and gene therapy manufacturing network. In August,
Gamida Cell signed an agreement with Biopharmax for the construction of suites for the commercial manufacture of omidubicel after potential FDA approval of omidubicel at a Gamida Cell-operated facility in Israel.
|
• |
Initiated enrollment for Cohort 2 in the Phase 1/2 study of omidubicel in patients with severe aplastic anemia:
In June, patient enrollment began in Cohort 2 of the investigator-sponsored,
Phase 1/2 clinical study of omidubicel in patients with severe aplastic anemia,
a rare and life-threatening blood disorder
. Earlier this year, encouraging data from Cohort 1 were reported at the
2019 Transplantation & Cellular Therapy (TCT) Meeting. All three patients enrolled in Cohort 1 successfully underwent a bone marrow transplant consisting of omidubicel plus a haploidentical stem cell graft. The rapid
engraftment, sustained hematopoiesis and accelerated immune recovery observed in these patients enabled the initiation of Cohort 2, where patients will be treated with omidubicel as a stand-alone graft.
|
• |
Demonstrated continued progress with GDA-201 clinical development program:
Gamida Cell continued to make progress with the GDA-201 clinical development program. The investigator-sponsored,
Phase 1/2 clinical study of GDA-201 in patient with non-Hodgkin lymphoma and multiple myeloma is ongoing, with additional data expected in the second half of 2019. The company is developing a cryopreserved formulation of GDA-201 to
enable a multi-center, multi-dose Phase 1/2 clinical study in patients with non-Hodgkin lymphoma, which is expected to begin next year.
|
• |
Completed public follow-on offering of approximately $40 million in gross proceeds:
In July, Gamida Cell announced that the company closed an underwritten public offering of 7,000,000
ordinary shares and that the underwriters exercised in full their option to purchase an additional 1,050,000 ordinary shares at the public offering price of $5.00 per share. The aggregate gross proceeds to Gamida Cell from the
offering, including the shares sold pursuant to the underwriters’ option, before deducting underwriting discounts and commission and offering expenses, were $40.3 million.
|
• |
Bolstered management team with appointment of Tracey Lodie, Ph.D., as chief scientific officer:
In June, the company announced the appointment of Tracey Lodie, Ph.D., as chief scientific
officer. Prior to joining Gamida Cell, Dr. Lodie served as senior vice president, translational immunology at BlueRock Therapeutics, where she helped to advance their universal pluripotent stem cell platform into central nervous
system, cardiovascular, and autoimmune therapeutic areas. She also served as vice president of immunology at Syros Pharmaceuticals, where she developed new autoimmunity and immuno-oncology research programs. Prior to Syros
Pharmaceuticals, Dr. Lodie spent over 14 years at Sanofi-Genzyme, where she held roles of increasing responsibility. She obtained a PhD. in immunology and pathology at Boston University School of Medicine before completing a
post-doctoral fellowship at Beth Israel Deaconess Medical Center in the Department of Hematology/Oncology.
|
• |
Shawn Cline Tomasello and Stephen Wills elected to Board of Directors, reflecting company’s progress toward commercialization:
In June,
Shawn Cline
Tomasello and Stephen T. Wills were elected to Gamida Cell’s board of directors. Ms. Tomasello has extensive experience in commercializing first-in-class medicines for the treatment of cancer, including Yescarta
®
(at Kite
Pharma, now part of Gilead Sciences) and Imbruvica
®
(at Pharmacyclics, now part of AbbVie). Mr. Wills has extensive operational, financial and transactional experience over nearly three decades in the life sciences and
accounting industries. He has served as chief financial officer of Palatin Technologies, a publicly-traded biotechnology company developing peptide therapeutics, since 1997 and also serves as Palatin’s chief operating officer and
executive vice president.
|
• |
Complete enrollment in Phase 3 study of omidubicel in patients with hematologic malignancies by the end of 2019
|
• |
Report topline data from the Phase 3 study of omidubicel in patients with hematologic malignancies in the first half of 2020
|
• |
Complete BLA submission for omidubicel in hematologic malignancies in the second half of 2020, should Phase 3 data be positive
|
• |
Complete patient enrollment in the ongoing Phase 1 study in the second half of 2019
|
• |
Present additional data at a medical meeting in the second half of 2019
|
• |
Initiate multi-center, Phase 1/2 clinical study in patients with NHL in 2020
|
• |
Research and development (R&D) expenses in the second quarter of 2019 were $7.0 million and were also $7.0 million in the same period in 2018. R&D expenses were higher in the second quarter of 2019 compared to the same
period in 2018 due to the advancement of omidubicel and GDA-201 but were offset by a $2.0 million increase in grants related to the Israeli Innovation Authority (IIA).
|
• |
General and administrative expenses were $3.8 million for the second quarter of 2019, compared to $2.9 million in the same period in 2018. The difference was attributable mainly to a $0.4 million increase in cash and non-cash
expenses related to hiring and establishing the U.S. headquarters as well as a $0.5 million increase in professional services, including an increase in expenses associated with being a publicly-traded company.
|
• |
Finance income, net, was $16.8 million for the second quarter of 2019, compared to finance expenses, net, of $3.2 million in the same period in 2018. The net increase was primarily due to non-cash income resulting from the
re-valuation of warrants, offset by non-cash expenses from the re-valuation of the IIA royalty-bearing grant liability.
|
• |
Net income for the second quarter of 2019 was $6.0 million, compared to a net loss of $13.1 million in the same period in 2018.
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2018
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Research and development, net
|
$
|
14,319
|
$
|
12,037
|
$
|
7,036
|
$
|
6,977
|
$
|
22,045
|
||||||||||
General and administrative
|
7,574
|
4,570
|
3,761
|
2,917
|
11,599
|
|||||||||||||||
Operating loss
|
21,893
|
16,607
|
10,797
|
9,894
|
33,644
|
|||||||||||||||
Finance expenses
|
1,604
|
4,204
|
1,336
|
3,230
|
20,259
|
|||||||||||||||
Finance income
|
(14,052
|
)
|
(330
|
)
|
(18,169
|
)
|
(34
|
)
|
(1,042
|
)
|
||||||||||
Loss (income) before taxes on income
|
9,445
|
20,481
|
(6,036
|
)
|
13,090
|
52,861
|
||||||||||||||
Taxes on income
|
100
|
-
|
74
|
-
|
70
|
|||||||||||||||
Net loss (income)
|
9,545
|
20,481
|
(5,962
|
)
|
13,090
|
52,931
|
||||||||||||||
Net loss (income) per share:
|
||||||||||||||||||||
Basic net loss (income) per share
|
$
|
0.38
|
$
|
29.69
|
$
|
(0.23
|
)
|
$
|
18.97
|
$
|
10.53
|
|||||||||
Diluted net loss (income) per share
|
$
|
0.87
|
$
|
29.69
|
$
|
0.44
|
$
|
18.97
|
$
|
10.53
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2018
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||
Net (loss) income
|
$
|
(9,545
|
)
|
$
|
(20,481
|
)
|
$
|
5,962
|
$
|
(13,090
|
)
|
$
|
(52,931
|
)
|
||||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||||||||||
Adjustments to the profit or loss items:
|
||||||||||||||||||||
Depreciation of property, plant and equipment and right-of-use assets
|
1,245
|
97
|
703
|
48
|
269
|
|||||||||||||||
Financial income, net
|
(569
|
)
|
(375
|
)
|
(378
|
)
|
(362
|
)
|
(858
|
)
|
||||||||||
Cost of share-based compensation
|
2,410
|
1,623
|
1,319
|
779
|
3,575
|
|||||||||||||||
Change in employee benefit liabilities, net
|
8
|
17
|
(3
|
)
|
33
|
(15
|
)
|
|||||||||||||
Amortization of premium on available-for-sale financial assets
|
101
|
(9
|
)
|
51
|
(90
|
)
|
272
|
|||||||||||||
Revaluation of financial derivatives
|
(13,471
|
)
|
3,400
|
(17,378
|
)
|
3,000
|
17,600
|
|||||||||||||
Revaluation of liability to IIA
|
1,199
|
2,600
|
631
|
2,188
|
2,037
|
|||||||||||||||
(9,077
|
)
|
7,353
|
(15,055
|
)
|
5,596
|
22,880
|
||||||||||||||
Changes in asset and liability items:
|
||||||||||||||||||||
Decrease (Increase) in prepaid expenses and other current assets and other assets
|
117
|
(1,156
|
)
|
(292
|
)
|
(1,256
|
)
|
942
|
||||||||||||
Increase (decrease) in trade payables
|
244
|
(1,232
|
)
|
1,088
|
306
|
(405
|
)
|
|||||||||||||
Increase in accrued expenses and other payables and employee and payroll accrual
|
162
|
1,871
|
141
|
1,611
|
2,296
|
|||||||||||||||
523
|
(517
|
)
|
937
|
661
|
2,833
|
|||||||||||||||
Cash received during the period for:
|
||||||||||||||||||||
Interest received
|
830
|
391
|
309
|
378
|
792
|
|||||||||||||||
Interest paid
|
(51
|
)
|
-
|
(23
|
)
|
-
|
-
|
|||||||||||||
779
|
391
|
286
|
378
|
792
|
||||||||||||||||
Net cash used in operating activities
|
(17,320
|
)
|
(13,254
|
)
|
(7,870
|
)
|
(6,455
|
)
|
(26,426
|
)
|
||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Purchase of property and equipment
|
(878
|
)
|
(703
|
)
|
(528
|
)
|
(472
|
)
|
(1,645
|
)
|
||||||||||
Purchase of of available-for-sale financial assets
|
-
|
-
|
-
|
-
|
(10,905
|
)
|
||||||||||||||
Proceed from sale of available-for-sale financial assets
|
-
|
4,984
|
-
|
-
|
4,949
|
|||||||||||||||
Proceed from maturity of available-for-sale financial assets
|
15,740
|
-
|
1,847
|
-
|
-
|
|||||||||||||||
Proceeds from bank deposits
|
-
|
5,000
|
-
|
-
|
5,000
|
|||||||||||||||
Investment in restricted bank deposits
|
-
|
-
|
-
|
-
|
(150
|
)
|
||||||||||||||
Net cash provided by (used in) investing activities
|
14,862
|
9,281
|
1,319
|
(472
|
)
|
(2,751
|
)
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2018
|
||||||||||||||||
Unaudited
|
Audited
|
|||||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Receipt of grants from the IIA
|
167
|
1,653
|
167
|
-
|
612
|
|||||||||||||||
Proceeds from issuance of shares, net
|
(346
|
)
|
-
|
(108
|
)
|
-
|
47,479
|
|||||||||||||
Payment of lease liabilities
|
(764
|
)
|
-
|
(324
|
)
|
-
|
-
|
|||||||||||||
Exercise of options
|
117
|
-
|
117
|
-
|
2
|
|||||||||||||||
Net cash provided by (used in) financing activities
|
(826
|
)
|
1,653
|
(148
|
)
|
-
|
48,093
|
|||||||||||||
Exchange differences on balances of cash and cash equivalents
|
90
|
-
|
28
|
-
|
31
|
|||||||||||||||
Increase (decrease) in cash and cash equivalents
|
(3,194
|
)
|
(2,321
|
)
|
(6,671
|
)
|
(6,927
|
)
|
18,947
|
|||||||||||
Cash and cash equivalents at beginning of period
|
40,272
|
21,325
|
43,749
|
25,931
|
21,325
|
|||||||||||||||
Cash and cash equivalents at end of period
|
$
|
37,078
|
$
|
19,004
|
$
|
37,078
|
$
|
19,004
|
$
|
40,272
|