Gracell Biotechnologies Inc. (GRCL) is driving down in premarket – What can be the reason?

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Gracell Biotechnologies Inc. (GRCL) experienced a decline of 4.88% in the premarket following the announcement of the Senior Management Team Share Purchase Plan. However, the last trading session concluded at $7.79 with an incline of 22.1%.

Senior Management Team Shares Purchase Plan – What’s up?

On 23rd November 2021, GRCL announced that Dr. William (Wei) Cao, Dr. Yili Kevin Xie, and Dr. Martina A. Sersch informed the Company of their plan to acquire the Company’s American depositary shares on the marketplace for up to $2 million in the following three months using personal finances.

Third Quarter 2021 results by GRCL – How’s the quarter been?

GRCL announced third quarter 2021 results on 15th November 2021. Research and development costs came out to be US$13.7 million for the three months ending September 30, 2021, compared to RMB40.0 million in the prior-year period. Moreover, labor expenditures increased by RMB16.3 million i.e., US$2.5 million as a result of the company’s continued development.

Administrative costs rose to US$6.7 million for the three months ending September 30, 2021. This rise was mostly due to an increase in share-based compensation expenditures of RMB20.5 million (US$3.2 million). Lastly, the foreign exchange loss was equivalent to US$0.1 million, compared to RMB2.2 million for the same time last year.

Now what?

This quarter, GRCL continued to execute outstanding research and clinical execution throughout the pipeline, extending clinical programs as well as advancing unique preclinical product candidates to the clinical stage.

In addition, the T cell treatments, both autologous and allogeneic, are aimed to deliver distinct methods with considerable improvements in manufacturing, production, efficacy, and cost. The company is continuing to focus on establishing strong clinical foundations across the lead projects, developing R&D activities and new preclinical candidates, and improving the manufacturing capabilities in order to bring lower-cost, more accessible treatments to patients.

Second Quarter 2021 Results by GRCL – What happened?

GRCL reported second-quarter 2021 results on 17th August 2021. The research & development costs came out to be RMB65.3 million (US$10.1 million) in the three months ending June 30, 2021. Due to the company’s continued development, labor expenditures increased by RMB8.2 million (US$1.3 million). Moreover, administrative costs grew up to $4.7 million. This rise was mostly due to a US$1.2 million increase in share-based compensation expenditures. Lastly, net loss was US$14.9 million, compared to RMB63.1 million for the same period the previous year.

What’s up?

The company is working to build on strong success as it reaches the second half of 2021. Moreover, they want to enroll interesting early pipeline prospects in clinical trials in China in the coming months of this year. Not only this, but their continued manufacturing relationship with Lonza will enable a U.S. IND filing for FasTCAR candidate GC012F in the first half of 2022, allowing them to expand for R&D capabilities in the United States.

Also, GRCL aims to increase the manufacturing capacity by establishing a second plant in Suzhou, China. GRCL will be closer to offering accessible and highly effective therapies for patients with a larger spectrum of cancers as a result of these clinical and operational advancements.

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