Canada's Edesa Biotech Q3 loss widens on higher R&D costs
EDSA•What drove the quarter
- R&D spending shift - Higher research and development expenses were mainly due to manufacturing and preparation costs for the planned Phase 2 EB06 clinical study in vitiligo patients, partially offset by lower spending on the paridiprubart program
- Administrative costs - General and administrative expenses rose due to increased noncash share-based compensation and professional fees
- Lower grant funding - A decrease in government reimbursement funding reduced other income
Key details and analyst coverage
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q3 Loss Per Share | $0.60 | |
| Q3 Net Loss | $5.40 mln | |
| Q3 Operating Expenses | $5.50 mln |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell". The average consensus recommendation for the biotechnology & medical research peer group is "buy".
Wall Street's median 12-month price target for Edesa Biotech Inc is $19.00, about 258.5% above its August 12 closing price of $5.30.
Outlook for EB06 and paridiprubart
The company expects EB06 Phase 2 patient recruitment to begin in Canada in coming weeks. Edesa said it is prioritizing execution of the EB06 Phase 2 study and supporting paridiprubart development.
