ARCA Biopharma Inc (NASDAQ: ABIO) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced its financial and operational results for the most recent quarter. Today, we’ll talk about:
- The results;
- what we’re seeing from ABIO stock as a result; and
- what we’ll be watching for ahead.
View my full report on ABIO here!
ABIO Announces Quarterly Results
As mentioned above, ARCA Biopharma is having a great day in the amrket today after announcing final results for the quarter ended March 31, 2019. The results came by way of press release early this morning.
First and foremost, the company announced a pipeline update. In February, the company received a Special Protocol – Agreement Letter from the FDA on its Special Protocol Assessment application for a Phase 3 PRECISION-AF clinical trial. In the report, the company said that it expects to initiate the trial by the end of 2019. Of course, this initation depends on the company’s ability to secure sufficient financing.
ABIO also reminded investors that results from its Phase 2B clinical trial were published in the Journal of the American College of Cardiology: Heart Failure. The data surrounded the company’s AB171 candidate, which is under development as a potential genetically-targeted treatment for heart failure and peripheral arterial disease.
Finally, the company said that once it secures additional financing, it is expecting to initiate IND-enabling non-clinical studies in the second half of 2019. An IND submission is anticipated in the first half of 2020.
From a financial standpoint, the company had cash, cash equivalents and marketable securities in the amount of $8 million at the close of the quarter. The company said that it believes that this funding is sufficient to run operations through the end of Q3.
Nonetheless, net loss for the quarter came in at $1.7 million, or $1.86 per share. Losses shrunk substantially year over year from $2.7 million or $3.61 per share in the first quarter of 2018.
Nonetheless, the company made it clear that as it stands, it will need to raise capital in order to fund operations and the development of Gencaro and other product candidates.
In a statement, Dr. Michael Bristow, President and CEO at ABIO, had the following to offer:
In the first part of this year, we continued to make progress on our lead development program Gencaro, achieving an agreement with the FDA on our Special Protocol Assessment for the PRECISION-AF Phase 3 clinical trial evaluating Gencaro as potentially the first genetically-targeted treatment for atrial fibrillation. Importantly, the GENETIC-AF Phase 2B clinical trial results, which are guiding our Phase 3 development, were accepted and published in JACC: Heart Failure.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to ARCA Biopharma, the news proved to be positive.
After all, the company is making significant progress in the development of Gencaro as well as the rest of its pipeline. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:58), ABIO is trading at $17.05 per share after a gain of $1.95 per share or 12.91% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ABIO. In particular, we’re interested in following the story surrounding the company’s continued work to develop its impressive pipeline and expand value for investors. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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