CASI Pharmaceuticals, Inc.

CASI reported Q2 2022 revenue of $8.6 million from EVOMELA sales, up 19% from $7.2 million in the prior-year quarter. Cost of revenues was $3.6 million versus $3.0 million a year ago, including royalty payments of $1.7 million compared with $1.4 million in Q2 2021. The company ended the quarter with $18.9 million in cash and cash equivalents. For guidance, management said it expects CNCT19’s China NDA filing in the second half of 2022, BI-1206’s first patient dosing in the second half of this year, and CB-5339 CTA approval in 2022; it also said it expects to have enough manufacturing capacity for CNCT19 for at least the first year, with no anticipated manufacturing issues at approval.

Wei-Wu He said the quarter was affected by COVID restrictions that limited hospital access in several large Chinese cities, but emphasized that the sales team adapted quickly and EVOMELA still delivered year-over-year growth. He framed the company’s strategy as staying focused on hematology-oncology while using partnerships and sublicensing to advance non-core assets, citing the CID-103 autoimmune sublicense as a way to unlock value without stretching CASI’s resources. His tone was constructive and upbeat, with repeated emphasis on near-term milestones and the strength of the company’s commercial infrastructure.

Rui Zhang highlighted that revenue was $8.6 million for the quarter, up from $7.2 million in the same period last year, while cost of revenues rose to $3.6 million from $3.0 million, including $1.7 million of royalties versus $1.4 million a year ago. She said EVOMELA revenue was slightly below Q1 2022’s $9.0 million because of the COVID lockdowns. She also reported $18.9 million of cash and cash equivalents at quarter-end and noted that CASI entered into a revolving line of credit with East West Bank of up to $10 million for working capital, saying management is being thoughtful about cash deployment to create shareholder value.

Analysts focused on two main issues: the durability of EVOMELA sales amid COVID disruptions and the rationale for the Precision Autoimmune Therapeutics sublicense. Management said Shanghai was effectively shut down for about two months, called China’s COVID policy unpredictable, and acknowledged the risk of future lockdowns, though it said revenue is coming back in some cities. On the deal, management said the sublicense lets CASI focus on hematology-oncology, brings in $10 million upfront, and shifts autoimmune development costs to a new company funded by outside investors.