Athersys, Inc. (NASDAQ:ATHX) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 04:30 pm ET

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Athersys, Inc. (NASDAQ:ATHX) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Athersys third quarter 2019 results conference call. [Operator instructions] Please be advised that today's conference is being recorded. [Operator instructions] I would now like to hand the conference over to your speaker today, Karen Hunady, Director of Corporate Communications and Investor Relations. Thank you. Please go ahead, madam

Executive
Karen Hunady

Thank you, David, and good afternoon, everyone. As David mentioned, 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 Athersys website at athersys.com. Dr. Gil Van Bokkelen, our Chairman and Chief Executive Officer; and Laura Campbell, Senior Vice President of Finance, will host today's call. The call is expected to last approximately 30 minutes, and a webcast of the audio will be available two hours after the call's conclusion on our website under the Events section. The access information for the replay is also 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 November 6th 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 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 third quarter 2019 financial results and then turn the call over to Gil for a corporate update, followed by a question-and-answer period.

During the third quarter of 2019, revenues were negative $400,000, compared to $2.3 million in the third quarter of 2018 and related primarily to our collaboration with Healios in Japan. The reduction in 2019 was impacted by our evaluation of variable considerations under the Healios product supply arrangement and changes that occurred during the quarter resulted in a decrease to the transaction price. Overall, our revenues are derived from license fees, other contract revenue, manufacturing-related services and grant revenue.

Our research and development expenses decreased to $8.9 million for the third quarter of 2019 from $9.5 million for the comparable period in 2018. The $600,000 decrease is associated with reductions in clinical trial costs, process development costs and license fees, partially offset