Statera reports Q3, first quarter as merged pharma

FORT COLLINS — Statera Biopharma Inc. (Nasdaq: STAB) third quarter results represent the clinical stage drug developer’s first consolidated financial information as a merged company.

Statera develops therapies to treat autoimmune diseases, neutropenia/anemia, viruses and cancers.

It’s the former Cleveland BioLabs Inc., which merged with Cytocom Inc. July 27. It bought ImQuest Life Sciences Inc. in June. ImQuest helps companies, including Statera, review preclinical drug candidates. The work for third parties brings in revenue as Statera develops its own pipeline.

A quarterly earnings press release and company update noted several GAAP applicable to the mergers, including varying periods for income, assets and liabilities, and statements of equity for the three firms.

Statera also provided information on its drug development.

Pipeline

The company said in August it’s evaluating or developing 21 drug candidates.  

By the end of the quarter it completed Phase 2 work on a drug for pediatric Crohn’s disease and is setting up Phase 3, to begin in early 2022.

It plans to complete by year-end a Phase 1 enrollment for a drug to “mitigate progression of SARS-CoV-2, the virus that causes COVID-19.” The trials will be at Loma Linda University Health in California.

Trials for drugs aimed at pancreatic cancer and blood maladies are expected to follow.

Efforts are underway to screen immune compounds via its ImQuest unit, and Statera is funding research at La Jolla Institute for Immunology in California aiming at “cancer, autoimmune conditions, and infectious diseases.”

Q3

In its most recent quarter ending Sept. 30, Statera reported revenue of $240,000 and a cost of revenue half that, for a gross profit of $120,000. It had a net loss of $12.7 million, compared with $5.7 million, year-over-year.

Research and development expenses declined to $3.4 million from $4.4 million. Costs of its clinical studies increased but Statera paid $3.8 million less in patent and intellectual property costs.

General and administrative expenses increased to $6.3 million from $1.8 million as Statera absorbed companies and employees and reset itself as a new firm. Stock-based compensation and payroll costs rose, as did payouts for stock listing, consultants and insurance.

2021

Year-to-date Statera burned through about $20 million to fund operations. It issued a $15 million note and $5.7 million in common stock to raise capital.

The merger with Cleveland BioLabs brought $13.6 million from net assets year-to-date, and Statera said it had about $14.4 million in cash and cash equivalents at the end of September.

Statera borrowed $7.7 million in the third quarter and said it “has additional funding capacity under these facilities.” Statera in July, just after merging with Cleveland BioLabs and starting to trade on Nasdaq, secured a $90 million debt and equity commitment from GEM Global Yield LLC, Avenue Capital Group and Adit Ventures LLC.

Statera said it “expected to close further funding commitments by year-end.”

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