GI Dynamics, Inc. (ASX: GID) (the Company), a medical technology company that has developed an innovative device to improve outcomes for patients battling type 2 diabetes and obesity, today released its Appendix 4C — Quarterly Cash Flow Report for the quarter ending 30 June 2016 (the Quarter).
Highlights for the Quarter
- Release of further positive EndoBarrier clinical data, including:
- Full U.S. ENDO trial results showing statistically significant 1.1% absolute reduction in HbA1c, a 13% reduction
- UK NHS-sponsored ABCD data showing combination therapy of EndoBarrier plus Victoza® produced a 2.1% absolute reduction in HbA1c, a 22% reduction
- Numerous clinical data presentations at Digestive Disease Week and American Diabetes Association meetings
- Improved cash flow and cash runway resulting from strategic cost-cutting and restructuring measures
- Appointment of Chairman Dan Moore
- Appointment of Chief Financial Officer Jim Murphy
- Appointment of Chief Compliance Officer and EVP Clinical Regulatory & Compliance Brian Callahan
- Response submitted on time to TGA; TGA has not yet replied to response
President & CEO Scott Schorer commented, “We have made significant progress in the restructuring and rebuilding of GI Dynamics over the past quarter. Many tough decisions needed to be made in order to preserve capital and stabilize the company. These actions will allow us to refocus efforts on developing optimal clinical, regulatory, and commercial strategies for EndoBarrier. We also continue to make progress towards rebuilding relationships with regulatory agencies in Europe and Australia and towards our goal of re-engaging with the FDA.”
Key Financial Information
Appendix 4C, which has been prepared in U.S. dollars under U.S. GAAP, is attached; the results disclosed in Appendix 4C are unaudited. The Company also plans to file its Quarterly Report on Form 10-Q with both the U.S. Securities and Exchange Commission and the Australian Securities Exchange by 10 July 2016. The Form 10-Q will provide financial statements for the Quarter, along with management’s discussion and analysis of financial condition and results of operations for the Quarter.
As of 30 June 2016, the Company had cash and cash equivalents of $12.3 million, compared to $15.6 million on 31 March 2016. The reduction in the cash and cash equivalents balance is due to net operating cash outflows of $3.4 million. Net operating cash outflows for the Quarter are primarily comprised of $1.8 million for staff costs, which includes approximately $0.6 million in one-time employee departure costs, $1.0 million for other working capital, $0.6 million for research and development costs, and $0.2 million for sales and marketing costs. These were offset by $0.1 million in customer receipts.
Investor Call to Discuss Results and Update on Strategy, Data and Cash Flow
The Company will hold a conference call at 6:30 p.m. U.S. EDT on Wednesday, 10 August 2016 (8:30 a.m. AEST on Thursday, 11 August 2016) to discuss the Company’s business outlook and the financial information for the Quarter. Scott Schorer, president and CEO, will host the call.
The Company will address the following topics on the call:
- Update on cash runway
- The Company’s corporate strategy, including upcoming milestones
- Review of clinical data
Accessing the Conference Call via Webcast:
Accessing the Conference Call via Telephone:
For those preferring to listen by telephone, please dial in five minutes prior to the start of the call and enter the passcode 56384973.
Dial-in numbers are as follows:
- United States callers please dial toll-free 1 877 797 0688
- Australia callers please dial toll-free 1 800 005 989
- International callers please dial 1 615 247 0187
The webcast will be archived for 30 days following the call on the GI Dynamics website at investor.gidynamics.com.