Brickell Biotech, Inc. (BBI) announced its fourth-quarter and full-year financial results of 2020 after which the BBI stock happened to be red, and its price saw a downtrend of 2.75% in today’s pre-market to drop at $1.06 a share at the time of this writing. BBI was gaining in the previous trading session and closed with a 0.93% gain. Let’s discuss the earnings report in detail.
Fourth Quarter Results:
- BBI stock recorded revenue of $27 thousand in the fourth quarter of 2020 which is significantly less than the $0.7 million in the same quarter of the prior year. The reduction in the revenue was mainly due to the winding down of the safety study of sofpironium bromide gel as well as various clinical activities in the first quarter of 2020.
- Reduction of clinical activities resulted in less research and development costs of $4.6 million in the fourth quarter of 2020 as compared to $6.6 million in the same tenure of the previous year.
- General and administrative expenses were reduced to $2.9 million of BBI stock as compared to$4.9 million in the same period of the previous year. This reduction is due to the reduction in cost related to the merger with Vical Incorporated, reduced impairment expenses, and other reduced miscellaneous expenses.
Full Year Financial Results:
- BBI stock generated $1.8 million revenue in 2020, a huge decrease as compared to the $7.9 million revenue of 2020. This decrease owes to the reduced clinical activities in 2020.
- Research and development expenses reduced to $11.2 million in 2020 as compared to $20.2 million in 2019.
- General and administrative expenses of BBI stock reduced to $11.6 million in 2020 while these were $12.2 in the prior-year period.
- As of December 31, 2020, BBI recorded a net loss of $20.9 million as compared to a net loss of $23.9 million as of December 31, 2019.
- BBI stock had cash and cash equivalents and market securities of $30.1 million at the end of 2020 while these were $11.7 million at the end of 2019.
Recent Developments of BBI stock:
Brickell Biotech completed an equity financing in 2020 that resulted in $13.7 million net proceeds.Moreover, Brickell Biotech initiated the enrollment of U.S. Phase 3 Cardigan I and Cardigan II studies related to sofpironium bromide gel and exceeded 50% enrollment in the former. Launching of ECCLOCK in Japan, publishing of phase 3 study results by Kaken, and completion of Phase 1/2 study of investigational COVID-19 vaccine candidate and initiation of Phase 2/3 study in Japan are some other major business developments of BBI stock.
Investors are responding to the earnings report released by BBI stock today. Results are not much satisfactory by BBI stock in 2020 as compared to 2019 as revenue as well as operating expenses decreased significantly which points to the decline in growth over the year.