OncoSec Medical Incorporated

For the fourth quarter of fiscal 2017, OncoSec reported a net loss of $5.8 million, or $0.28 per share, versus a net loss of $6.6 million, or $0.39 per share, a year ago. For the full fiscal year ended July 31, 2017, net loss was $21.4 million, or $1.06 per share, compared with $26.9 million, or $1.63 per share, last year. There were no revenues in fiscal 2017 or fiscal 2016. R&D expense was $3.2 million in the quarter and $12.0 million for the year, versus $3.6 million and $14.7 million, respectively; G&A expense was $2.6 million in the quarter and $9.5 million for the year, versus $3.0 million and $12.1 million, respectively. Cash and cash equivalents were $11.4 million at July 31, 2017, down from $28.7 million a year earlier. After quarter end, the company closed a registered public offering for about 5.3 million shares at $1.34375 per share, generating about $7.2 million gross and about $6.2 million net proceeds, and announced another offering of 800,000 shares at the same price. Management said, based on cash on hand, these financings, and current burn, the company could fund operations into the third calendar quarter of 2018 without a significant change in business plan or spending. They also said cash burn should see a slight ramp as PISCES enrollment progresses.

Punit Dhillon framed 2017 as a year of meaningful clinical and corporate execution, centered on advancing ImmunoPulse IL-12 and its combination with checkpoint blockade. He emphasized the initiation of the registration-directed PISCES/KEYNOTE-695 trial, the strength of the updated melanoma data, and the importance of Merck’s collaboration and FDA designations. His tone was optimistic and execution-focused, repeatedly pointing to mid-2018 data as the next key milestone and describing 2018 as an important year for the company.

Richard Slansky focused on the year-over-year improvement in losses and spending efficiency. He cited the full-year net loss of $21.4 million versus $26.9 million last year, with the decline driven by a $2.2 million reduction in stock-based compensation, about $1.8 million less in R&D, and $1.4 million lower personnel costs; he also noted that lower spending was split fairly evenly between R&D and G&A. On liquidity, he said the company had $11.4 million in cash and equivalents at year-end, then added that the recent financings and current burn could support operations into Q3 2018, with a slight ramp expected as PISCES enrollment accelerates. He also detailed the financings: about $7.2 million gross from a registered offering, about $6.2 million net, plus a second $800,000-share deal expected to close shortly.

Analysts focused on the monotherapy data, asking about patient and tumor biomarkers, the difference between the 50% and 43% combination BORR figures, the timing and structure of interim/registration readouts for PISCES, and the expected cash burn. Management explained that the 50% vs. 42.9%/43% difference was due to a denominator change after data cleaning, with one patient excluded under strict RECIST size criteria even though she appeared clinically to be a complete responder. On PISCES timing, they said they have only guided to top-line data by mid-2018 and did not provide patient-count thresholds; they also reiterated that the trial is designed as a two-stage study and that they plan to engage the FDA after stage 1. On cash burn, the CFO said burn has come down considerably and should rise slightly as enrollment ramps.