Gelesis Holdings, Inc.

For the three months ended September 30, 2022, product revenue was $6.4 million, driven by over 92,000 units sold, which was more than double the prior-year quarter. New members were 23,500, up 50% from 15,700 in the same quarter last year. Gross margin was 44% versus 8% in the prior-year quarter, producing gross profit of $2.8 million for Q3 and $9.6 million year-to-date, compared with $251,000 in Q3 2021 and $709,000 for the nine months ended September 30, 2021. Net loss was $14.1 million versus $30.7 million a year ago, and adjusted EBITDA was a loss of $12.3 million versus a loss of $26.2 million. Management said full-year 2022 product revenue, gross profit, and adjusted EBITDA are expected to remain within previously provided guidance. It also said additional reductions in SG&A, manufacturing, and R&D should extend runway into at least the second quarter of next year.

Yishai Zohar framed Plenity as a differentiated, broad-market weight management product with the largest addressable market because it is approved for BMI as low as 25. He said the company is pursuing OTC classification because prescription requirements create friction and cause drop-offs, while OTC could open new channels and lower customer acquisition costs. His tone was upbeat and strategic, emphasizing long-term growth, self-sustainability, and a capital-efficient business model.

Elliot Maltz focused on the quarter’s financial execution and liquidity. He cited $6.4 million of product revenue, 44% gross margin, $2.8 million of quarterly gross profit, $14.1 million of net loss, and a $12.3 million adjusted EBITDA loss. He also noted $24.8 million in cash, $5.6 million in receivables, $18.4 million of inventory, and $8 million in accounts payable at quarter-end, and said the company is speaking with investors and other financing sources while expecting current cash and spending cuts to fund operations into at least Q2 next year.

Analyst Daniel Grosslight asked why management is shifting to OTC so soon after the broader launch and whether Plenity would be sold only through OTC channels if approved. Zohar replied that the OTC strategy has always fit Plenity’s safety, efficacy, and broad label, and that prescription adds friction and cost; he said Ro remains an important partner, but OTC would open additional channels rather than eliminate all existing ones. Grosslight also pressed on funding needs given the cash balance and burn, and Maltz said the company is pursuing investors, debt, equity, and partnership options while reducing burn, and does not expect to use the equity line of credit materially near term.