Athersys Inc. said Thursday it reduced its first-quarter loss by nearly two-thirds, thanks to a restructuring started almost a year ago.
The Cleveland regenerative medicine company lost $7.8 million, or 43 cents per share, in the quarter ended March 31 compared with a net loss of $22.2 million, or $2.27 per share, for the comparable period in 2022, according to a statement.
Athersys had no revenues in the just-ended quarter compared to revenues of $2.9 million in the year-ago quarter.
In June 2022, Athersys said it would cut its workforce by as much as 70% in a restructuring aimed at conserving cash and making the company an attractive investment for potential financial or strategic partners.
Athersys is in the final stages of trialing its adult stem therapy, called MultiStem, to help ischemic stroke patients and has begun testing the therapy to help patients who have acute respiratory distress syndrome.
"We entered 2023 with greater clarity and confidence on our path forward with MultiStem, having largely completed a significant restructuring in the second half of last year that reduced our operating expenses below $2.5 million per month," Dan Camardo, the company's CEO, said in the statement.
Following a meeting with the U.S. Food & Drug Administration earlier this year, Athersys amended the protocol for its latest clinical trial for stroke patients to better capture MultiStem's long-term effects.
Also during the first quarter, the company raised $3.7 million through a registered direct offering with institutional investors and "advanced conversations with multiple parties exploring business development opportunities with MultiStem" and the company's animal health franchise and cryogenic storage technology, Camardo said.
"We have more work to do, but I’m encouraged by the progress we’ve made and the catalysts we are working toward in the coming year," Camardo said.
Athersys (Nasdaq: ATHX) shares slipped as much as 5% to about 74 cents a share in trading on Thursday.
