Gamida Cell Annual Net Loss Narrows; To Be Taken Private

(RTTNews) - Gamida Cell Ltd. (GMDA), a company focused on cell therapy, on Wednesday reported a narrower loss for the full year, supported by an increase in financial income of $14.4 million and around $2 million of lower operating expenses.

In addition, the company has announced a restructuring process to boost capital infusion.

For the 12-month period, the drug maker registered a net loss of $62.996 million or $0.57 per share, compared with a loss of $79.375 million or $1.24 per share, recorded last year.

Total operating loss stood at $73.038 million, narrower than $74.993 million a year ago.

Financial income was at $10.042 million as against a loss of $4.382 million in 2022.

Total operating expenses declined to $73.368 million from previous year's $74.993 million.

Gamida generated revenue of $1.8 million from the delivery of six units of Omisirge. The full-year revenue included $1.1 million of net review for the fourth quarter. Last year, company hadn't reported any revenue.

The company also announced a restructuring initiative to resolve its financial constrains and infuse more funds to bolster the commercialization of allogeneic stem cell transplant Omisirge, omidubicel-onlv.

Abbey Jenkins, CEO of Gamida Cell, said: "In March 2023, Gamida Cell embarked on an extensive strategic process to address its capital structure and liquidity constraints by partnering Omisirge with a third party. Unfortunately, that process did not yield any actionable alternatives. This restructuring will enable Gamida Cell to remain as a going concern and will support our ongoing efforts to make Omisirge available to more transplant centers and their patients as a potentially lifesaving donor source option."

As part of the restructuring plan, Gamida inked a Restructuring Support Agreement or RSA with certain funds managed by Highbridge Capital Management, LLC, the company's principal lender.

Post transaction, the drug maker will convert $75 million of its existing unsecured convertible senior notes into equity.

The drug maker will receive $30 million of new capital from Highbridge.

Additional capital is expected to be invested by the lender following the company's emergence, which should position it to meet its goals around the commercialization of Omisirge.

Upon the completion of the transaction, expected in the second-quarter, Gamida will become a private company, wholly owned by Highbridge.

The newly reorganized Gamida Cell will issue contingent value rights with a value of $27.5 million to its shareholder, subject to the achievement of certain revenue and regulatory milestones.