Athersys Inc., the Cleveland-based regenerative medicine company, needs to raise more capital so it can continue operating, CEO Dan Camardo told securities analysts late Thursday afternoon.
In June, Athersys embarked on a financial and operational restructuring — what Camardo has begun calling a "transformation" — to lower its cost and conserve cash while completing the testing and commercialization of its adult stem-cell therapy, MultiStem, to treat certain stroke patients.
The restructuring included cutting 70% of its headcount, and reshaping its leadership team and board of directors.
"We're making fundamental changes to how we run the business, including how we set business strategy, define and execute on priorities, and engage with investors and partners," said Camardo, a senior pharmaceutical and biotech executive who was hired in February to commercialize MultiStem.
"Under the transformed Athersys, we are much more focused, we're more judicious, and we are driven," Camardo said.
On Thursday, Athersys reported revenue of $2.3 million for the three months ended June 30, compared with no revenue in the year-ago second quarter.
The company also said its net loss widened slightly to $23.6 million in the just-ended quarter compared to a net loss of $22.6 million a year ago.
"To move forward, we need to raise capital," Camardo said. "We have been evaluating various financing options and continue to pursue potential partnerships that would provide non-dilutive funding and potentially complementary capabilities in regulatory clinical operations, commercial and manufacturing."
Shares of Athersys (Nasdaq: ATHX) fell less than 1% to 28 cents in regular trading and an additional 4.1% to 27 cents in after-market trading on Thursday.
On July 28, Athersys shareholders voted to approve a reverse stock split of their company's shares to bolster their value.
The reverse split, which Athersys has said would be within a range of 1:15 to 1:30, is aimed at enabling the company to maintain its stock listing on the Nasdaq Stock Market.
