GMDA - Gamida Cell tanks after dismal cash runway guidance for 2023

2023-03-27 12:30:13 ET

Gamida Cell ( NASDAQ: GMDA ) is trading around -25% on Monday after it said at the end of its 2022 results it expects current cash and cash equivalents to support operations through Q3 2023.

Net loss for 2022 was $79.4M and EPS missed analysts' estimates as well. Gamida ( GMDA ) reported higher expenses from the closing on a senior secured convertible term loan of $25M. It also posted higher costs linked to its corporate headquarters and headcount-related expenses, and professional services.

Commercial launch readiness expenses declined and so did R&D costs after the conclusion of its Phase 3 study of omidubicel.

Gamida ( GMDA ) has outlined plans for a strategic restructuring, prioritizing the launch of omidubicel and reducing operating expenses to extend the cash runway.

The company has had productive interactions with the FDA on the authorization process for omidubicel and plans to allocate most of its resources to launch the drug, if approved.

However, investment into the launch and ramp-up in commercialization will still be slower than previously planned amid a dearth in financial resources.

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