While the bottom line in the Consolidated Income Statement may...

While the bottom line in the Consolidated Income Statement may appear impressive, ie. loss reduced by $14M, this has been made up by the increase in revenue of $5.4M, a reduction in R & D and manufacturing costs of $7.7M and income tax benefit of $1.2M.

The increase in commercial revenue ie. Temcell was $880K which in %wise substantial but in $ terms not significant. Let's hope that sales will increase over time.

The bulk of the revenue was made up by the $15M from Gruenthal and this has been timely otherwise the loss would have mirrored the previous year’s quarter.

Based on financials I cannot really say I am overjoyed and this probably has been reflected in the SP today which is a minor increase in price.

In the reported Financial Overview, the losses since inception are $476.3M. It would appear that R & D will decrease over the next 12-24 months as Phase 3 trials are completed or if they can find a partner for the product candidates.

Once regulatory approval is achieved and they move towards commercialisation, total expenses will increase in product manufacturing, selling and general administrative expenses. Hence they would need more cash either by equity offerings, debt financing, third party funding, marketing and distribution arrangements and other collaborations, strategic alliances and licencing arrangements. We still have a long way to go and lets not get carried away by speculating on what the price will be like in the next 3-6 months.

The operation highlights are however encouraging with Remestemcel-L for GVHD on the verge of approval. Let’s hope that the final submission of the BLA is made well before Christmas to ensure that the final verdict by end February 2020.

I also do hope that “in active discussions to enter into further global and regional strategic transactions” materialises for both CLBP and CHF which will see some serious money coming.