FX.co ★ Gamida Cell Annual Net Loss Narrows; To Be Taken Private

Gamida Cell Ltd. (GMDA), a firm specializing in cell therapy, confirmed on Wednesday that it experienced reduced losses for the entire year. This improvement resulted from a $14.4 million rise in financial income and nearly $2 million decrease in operational costs.

In addition, the company announced a restructuring plan aimed at increasing investment. Over the year, the pharmaceutical firm posted a net loss of $62.996 million or $0.57 per share, which signifies a reduction from the previous year's loss of $79.375 million or $1.24 per share.

The total operational loss was $73.038 million, down from $74.993 million from the previous year. The financial income for the year was $10.042 million, a significant improvement from the loss of $4.382 million in 2022.

Operational expenses also decreased to $73.368 million, as compared to $74.993 million in the previous year. The company made a revenue of $1.8 million through the delivery of six units of Omisirge, which include $1.1 million of net revenue for the fourth quarter.

Additionally, the company embarked on a restructuring plan to alleviate its financial limitations and increase funding to boost the marketing of Omisirge, an allogeneic stem cell transplant. Abbey Jenkins, Gamida Cell's CEO, claims that the restructuring will allow the company to remain solvent and support efforts to make Omisirge more accessible to additional transplant centers and patients.

As part of its restructuring, Gamida signed a Restructuring Support Agreement (RSA) with Highbridge Capital Management, LLC. The agreement will allow for the conversion of $75 million of existing unsecured convertible senior notes into equity. Furthermore, Highbridge will provide Gamida an additional $30 million capital, with more anticipated to be contributed after the company's emergence.

Upon the anticipated completion of the restructuring in the second quarter, Gamida will become a privately owned company under Highbridge. The reinvented Gamida Cell will issue contingent value rights valued at $27.5 million to its shareholders, depending on the achievement of specific revenue and regulatory milestones.