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RAMAT GAN, Israel - Can-Fite BioPharma (NYSE:CANF) Ltd. (NYSE American: CANF) (TASE: CANF), a biotechnology company focused on developing small molecule drugs for cancer and inflammatory diseases, has released its financial results and clinical updates for the first half of 2024. The company reported revenues of $0.32 million for the period ending June 30, 2024, a slight decline from $0.39 million in the same period the previous year.
Research and development expenses decreased to $2.89 million from $3.42 million, largely due to reduced spending on the drug candidate Piclidenoson. General and administrative expenses saw a minimal increase to $1.53 million. Net loss improved to $3.95 million from $4.22 million, attributed to lowered operating expenses. As of June 30, 2024, the company's cash, cash equivalents, and short-term deposits totaled $4.72 million, down from $8.90 million at the end of 2023.
The company also highlighted the exercise of warrants in August, generating approximately $5.0 million in gross proceeds. Clinical advancements include positive interim results from a canine osteoarthritis study of Piclidenoson by partner Vetbiolix, which may lead to a licensing agreement with Can-Fite.
Namodenoson, another drug candidate, is currently in a Phase 3 study for liver cancer with 31 medical centers across Europe, Israel, and the U.S. involved. The drug has received Orphan Drug status and Fast Track designation from the U.S. FDA. A compassionate use program is active in Israel and Romania. Namodenoson has also been submitted for Orphan Drug Designation for pancreatic cancer treatment and is cleared by the FDA for a Phase IIb study in MASH patients.
Can-Fite's CEO & CFO Motti Farbstein expressed optimism about the positioning of their drugs in markets with unmet needs. The financial results and clinical updates are based on a press release statement from Can-Fite BioPharma Ltd.
In other recent news, Can-Fite BioPharma has been making significant strides in drug development and clinical trials. The company's drug candidate, Namodenoson, received Fast Track and Orphan Drug designations from the U.S. Food and Drug Administration (FDA) for the treatment of advanced liver cancer. The drug is now undergoing a pivotal Phase III study named LIVERATION, recruiting participants across 31 medical centers in Europe, Israel, and the United States.
In addition, the FDA has granted Investigational New Drug (IND) clearance for Namodenoson, enabling the company to include U.S. patients in an ongoing Phase IIb clinical trial for the treatment of metabolic dysfunction-associated steatohepatitis (MASH). Furthermore, Can-Fite reported promising results from a clinical study on dogs with osteoarthritis using Piclidenoson, showing significant improvement in clinical status and pain reduction.
Moreover, Can-Fite BioPharma Ltd. received a Notice of Allowance from the European Patent Office for its erectile dysfunction (ED) treatment patent, about the CF602 drug candidate. The company also expanded its agreement with Ewopharma to include marketing rights for Namodenoson in treating pancreatic carcinoma. In parallel, Wearable Devices Ltd. has announced its upcoming Annual and Special General Meeting of Shareholders, scheduled for late September. These recent developments highlight the companies' continued commitment to drug development, clinical trials, and shareholder engagement.
InvestingPro Insights
Can-Fite BioPharma Ltd. (NYSE American: CANF) has demonstrated a mix of financial and operational metrics that offer a comprehensive view of its current standing. With a focus on small molecule drugs, the company's financial health and stock performance provide critical insights for investors.
InvestingPro Data shows that Can-Fite's revenue for the last twelve months as of Q4 2023 stands at $0.74 million, indicating a decline of 8.27% year-over-year. Despite a challenging revenue landscape, the company has managed to maintain a gross profit margin of 100%. However, the operational efficiency is reflected in a negative operating income margin of -1102.96%, with an adjusted operating income of -$8.2 million for the same period.
From a stock performance perspective, Can-Fite's 1-month price total return as of late 2024 has seen a significant drop of -28.26%, which aligns with the InvestingPro Tip highlighting that the stock has fared poorly over the last month. The company also does not pay a dividend, potentially affecting investor decisions who often look for income in addition to capital gains.
On the balance sheet, Can-Fite holds more cash than debt, which is a positive sign of liquidity. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a stable short-term financial position. These InvestingPro Tips underscore the company's solid cash management despite its revenue and profitability challenges.
For investors seeking more detailed analysis, there are additional InvestingPro Tips available, which delve into the company's cash burn rate and the analysts' outlook on profitability. For instance, one tip notes that Can-Fite is quickly burning through cash, which is essential to consider when evaluating the company's long-term sustainability.
For those interested in a deeper dive into Can-Fite's financials and performance metrics, further insights can be found on the InvestingPro platform, which includes several more tips for a comprehensive investment analysis.
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