Athersys, Inc. (NASDAQ:ATHX) Q1 2019 Earnings Conference Call Transcript

May 08, 2019 • 04:30 pm ET

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Athersys, Inc. (NASDAQ:ATHX) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Athersys First Quarter 2019 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Karen Hunady, Director of Corporate Communications and Investor Relations, you may begin your conference.

Executive
Karen Hunady

Thank you and good afternoon, everyone. I'm Karen Hunady, Director of Corporate Communications and Investor Relations for Athersys. Thank you for joining today's call. If you do not have a copy of the press release issued at the close of market, it is available on the Athersys website at athersys.com.

B.J. Lehmann, President and Chief Operating Officer; and Laura Campbell, Senior Vice President of Finance, will host today's call. The call is expected to last approximately 30 minutes and may also be accessed from athersys.com. A replay will be available 2 hours after the call's conclusion, and access information for the replay is in today's press release.

Any remarks that we make about future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by the forward-looking statements as a result of various important factors, including those discussed in our Forms 10-Q, 10-K and other public SEC filings. We anticipate that subsequent events and developments may cause our outlook to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.

For the benefit of those who may be listening to the replay, this call was held and recorded on May 8th of 2019. Since then, we may have made announcements related to the topics discussed, so please reference our most recent press releases and SEC filings.

With that, I'd like to turn the call over to Laura Campbell. Laura?

Executive
Laura K. Campbell

Thank you, Karen. Good afternoon and welcome, everyone. I'm Laura Campbell, Senior Vice President of Finance at Athersys. I'll briefly review our first quarter 2019 financial results and then turn the call over to B.J. for a corporate update followed by a question-and-answer period.

During the first quarter of 2019, revenues increased to $1.4 million compared to $1.1 million during the first quarter of 2018. Our revenues are generally derived from license fees, manufacturing-related activities for Healios, royalty and other contract revenue from collaborators and grant revenue. Revenues from our collaboration with Healios increased quarter-over-quarter due to the manufacturing services that we provide and invoice to Healios. Royalty revenues from RTI Surgical have now concluded with its discontinued distribution of the licensed product.

Research and development expenses increased to $11.4 million for the first quarter of 2019 from $8.9 million for the comparable period in 2018. The $2.5 million increase is primarily associated with increased clinical trial and manufacturing process development costs, increased personnel costs