Complimentary Stock: Kindred Biosciences, Inc.’s (NASDAQ:KIN)

On 23 August 2k19, Kindred Biosciences, Inc.’s (NASDAQ:KIN) the stock showed the upbeat by -4.78% with closing price of $7.17 during the normal trading session on Friday and reaching a high of $15.20. KIN stock had a low trading volume of 0.24 million shares on that day, which is compared to the average daily volume of 0.18 million shares.

Kindred Biosciences, Inc. (KIN) recently reported financial results for the 2nd quarter ended June 30, 2k19 and provided updates on its programs, including positive results from a pilot efficacy study of its before unrevealed parvovirus monoclonal antibody. For the 2nd quarter 2k19, KindredBio stated net product revenues of $1.2M and a net loss of $14.3M, or $0.37 per share. For the first six months of 2k19, net product revenues were $1.8M and the net loss was $30.4M, or $0.79 per share.

“The second half of 2k19 represents a catalyst rich period, and we are on track for key milestones. Earlier this week, we reported positive pilot field effectiveness study results for our lead canine a topic dermatitis biologic candidate, positioning it to become a key therapeutic in this large and growing market. We are also happy to report that our first cGMP drug manufacturing campaigns at our plant in Burlingame have been successful, and that construction on our state-of-the-art Kansas biologics manufacturing facility has been completed on time and on budget. With end-to-end capabilities and a highly experienced biologics team that has worked on some of the most successful human drugs, we are well-positioned to be a leader in companion animal biologics. By year-end, we also anticipate announcement of results from additional pilot studies and the initiation of three pivotal studies. These catalysts have the potential to make 2k19 a landmark year for KindredBio.”

2nd quarter 2k19 Financial Results

For the quarter ended June 30, 2k19, KindredBio stated a net loss of $14.3M or $0.37per share, as contrast to a net loss of $11.2M or $0.39 per share, for the same period in 2k18. For the six months ended June 30, 2k19, the net loss was $30.4M or $0.79per share, as contrast to a net loss of $21.2M or $0.75 per share for the same period in 2k18.

The company recorded $1.2M in net product revenues for Mirataz for the 2nd quarter and $1.8M for the first six months of 2k19. There were no net product revenues for the same periods in 2k18 as Mirataz became commercially accessible in July 2k18.

The cost of product sales totaled $0.2M in the 2nd quarter and $0.3M for the six months in 2k19, resulting in a gross margin of 86% and 85%, respectively.

Research and development expenses for the three and six months ended June 30, 2k19 were $6.7M and $13.9M, respectively, contrast to $5.8M and $11.2mmm for the same periods in 2k18. Stock-based compensation expense included in research and development expense was $0.5M and $0.9M for the three and six months ended June 30, 2k19, as contrast to $0.4M and $0.9M for the same periods in 2k18. The $2.7M year-over-year increase in research and development expenses was primarily Because of higher headcount and related expenses as the company focuses on advancing its biologics programs, and higher consulting expenses for quality assurance programs.

Selling, general and administrative expenses were $9.1M and $19.0M for the three and six months ended June 30, 2k19, contrast to $5.8M and $10.7M for the same periods in 2k18. The $8.3M year-over-year increase is the result of being a commercial company, as well as increased expenses incurred by the Elwood, Kansas plant in the lead up to its commissioning. In addition, higher corporate infrastructure costs and stock-based compensation expense also contributed to the increase in expenses. Stock based compensation expense was $1.4M and $2.8mmm for the three and six months in the first half of 2k19, versus $1.0M and $2.0mmm in the year-before period.

As of June 30, 2k19, KindredBio had $79.6M in cash, cash equivalents and investments, contrast with $73.9M as of December 31, 2k18. Net cash used in operating activities for the first six months of 2k19 was about $31.8M, offset by $43.1M of net cash proceeds from an underwritten public offering of its ordinary stock in the first quarter of 2k19. The company also invested about $6.7M in capital expenditures for the remaining portion of the build-out of its Elwood, Kansas manufacturing facility and the purchase of associated lab and manufacturing equipment for the facility.

The stock has behind by -52.83% from its 52-week high while it has up by 20.30% from its 52-week low price. Return on assets ratio of the Company was -50.10% and return on equity ratio was -55.50% while its return on investment ratio was -56.20%.

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