Athersys Inc., the Cleveland regenerative medicine startup, is having conversations with "new potential partners" to license or co-commercialize the company's technology as a step toward solving its serious cash shortage, CEO Daniel Camardo said on Tuesday.
"Much of our preclinical research has been highlighted in various scientific publications but was never offered or pursued from a business development perspective," Camardo told securities analysts during a call about the company's third-quarter financial results.
"Now, in addition to licensing opportunities for ischemic stroke, we're also looking at co-commercialization opportunities in ways to advance our pipeline," he said.
For months, Athersys has been restructuring its operations — cutting 70% of its workforce, including top executives and co-founders, for instance — and trying to raise cash to complete the testing and commercialization of MultiStem.
On Tuesday, Athersys said it lost $13.7 million, or $1.15 a share, in the third quarter, a 15% improvement from the year-ago figure as its cost-cutting measures took hold.
Revenues fell to $65,000 from $4.8 million from the 2022 third quarter, the company said.
Early this month, Athersys revealed it might have to cease operations if debt owed to its contract manufacturer could not be renegotiated.
"We've made significant investments over time to understand how MultiStem stem cells work, why they are unique, and how they can optimally be manufactured at scale, and we intend to work with partners to build on our experience," Camardo said on Tuesday.
"Although our efforts are resulting in conversations with new potential partners, it's too early to predict outcomes," he said.
Athersys also is deepening its development and commercialization partnership with Healios K.K. in Tokyo, Japan, Camardo said.
In September, Athersys granted Healios a license to make MultiStem for the treatment of ischemic stroke and acute respiratory distress syndrome solely for use in Japan, the company said in a regulatory filing.
"In the near term, we will need to obtain significant capital through public or private equity offerings, debt financings, collaborations and licensing arrangements or other sources to continue to fund our operations," Athersys said in its quarterly report filing.
Shares of Athersys (Nasdaq: ATHX) were down 15.5% to about 58 cents in late-afternoon trading on Tuesday.
Athersys has until April to remedy a Nasdaq requirement to maintain a minimum market value of its common stock of $35 million, the company said in its filing.
In August, Athersys combined 25 of its shares into one share during a reverse stock split to come back into compliance with Nasdaq's minimum stock price rule.
