Athersys, Inc. (NASDAQ:ATHX) Q1 2020 Earnings Conference Call - Final Transcript

May 07, 2020 • 04:30 pm ET


Athersys, Inc. (NASDAQ:ATHX) Q1 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Athersys First Quarter 2020 Results Conference Call.

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Karen Hunady. Thank you. Please go ahead.

Karen Hunady

Thank you, Casey, and good afternoon, everyone.

As Casey 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 the Athersys website at Ivor Macleod, Chief Financial Officer, is here to provide us with a financial update; and Gil Van Bokkelen, Chairman and Chief Executive Officer, will be providing our corporate update. Today's call is expected to last 30 to 45 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 may 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 those 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 7th of 2020. 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 Ivor Macleod. Ivor?

Ivor Macleod

Thanks, Karen. Good afternoon, everybody. And once again, thank you for joining today's call. I'm Ivor Macleod, Chief Financial Officer of Athersys, and it is my pleasure to give you an overview of the financial results for the first quarter of 2020.

We did not recognize any revenue for the three months ended March 31st, 2020, compared to $1.4 million for the three months ended March 31st, 2019. The revenues in the prior period were generated from our collaboration with Healios related to manufacturing services performed. We do expect our collaboration revenues to vary over time as we contract with Healios to perform manufacturing services or engage in other activities and as we potentially enter into new collaborations.

Research and development expenditures were $12.1 million for the first quarter of 2020, a $700,000 increase over the $11.4 million expended in the comparable period in 2019. The $700,000 increase is associated with increases in internal research supplies of $700,000, personnel costs of $300,000, outside services of $200,000, consulting costs of $100,000, stock compensation costs of $100,000