Can-Fite BioPharma Ltd.

For the nine months ended September 30, 2020, revenue was $0.61 million versus $1.84 million in the same period of 2019. R&D expense was $9.05 million versus $7.01 million year over year; G&A was $2.14 million versus $2.22 million; net financial expense was $0.22 million versus $0.44 million; and net loss was $10.81 million versus $7.84 million. Cash and cash equivalents were $10.22 million at September 30, 2020, compared with $2.69 million at December 31, 2019. Management did not give quantified revenue or earnings guidance, but said it expects to commence patient enrollment in the Phase II COVID-19 study by year-end, continue the psoriasis study, initiate a pivotal Phase III liver cancer study, and start the next NAFLD/NASH study in 2021.

Pnina Fishman framed the quarter as a mixed but strategically positive period: psoriasis interim data were called highly encouraging, while RA was effectively terminated after failing the non-inferiority endpoint. She emphasized that Can-Fite is concentrating on clinical programs with the strongest promise, especially psoriasis, NASH, and liver cancer, and she pointed to the upcoming COVID-19 study as another near-term catalyst. Her tone was optimistic but selective, repeatedly stressing that the company is focusing resources on programs with better data and commercial potential.

Motti Farbstein detailed the nine-month financials and linked the higher R&D spend to clinical execution. Revenue of $0.61 million declined because less of the upfront payments from Gebro, CKD Pharmaceuticals, and Cipher Pharmaceuticals was recognized; R&D rose to $9.05 million mainly from accelerating enrollment costs in the psoriasis and RA Phase III studies. He also noted that cash increased to $10.22 million due to $17.68 million of net proceeds from warrant exercises and offerings in 2020, partially offset by $10.16 million of operating cash burn. He did not provide margin guidance or capital allocation plans beyond describing the financing sources and cash position.

Analysts focused on timing and next steps. Management said the psoriasis study should finish in about ten to twelve months after enrollment is completed in a couple of months, and that NASH timing depends on ongoing preparatory work with key opinion leaders. On RA, management said the study cost was between $5 million and $6 million through interim analysis. They also said the U.S. will be included in future NASH patent and registration efforts, and management reiterated that partnership discussions are ongoing but gave no specifics.