PharmiWeb.com - Global Pharma News & Resources
03-Oct-2019

Rafael Holdings Reports Fourth Quarter and Full Fiscal Year 2019 Results

NEWARK, N.J., Oct. 3, 2019 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE American: RFL), reported revenue of $4.9 million and a loss per share of $0.35 for the fiscal year ended July 31, 2019. Fourth quarter revenue was $1.4 million and the loss per share was $0.16.

Recent Operational Highlights

  • Rafael Pharmaceuticals, a clinical-stage pharmaceutical company in which the Company holds preferred equity and a warrant to increase ownership to 56% of the fully diluted equity interests, reached an out-licensing agreement with Ono Pharmaceutical Co., Ltd. of Japan.  Ono gained exclusive rights to develop and commercialize Rafael Pharma's lead drug candidate, CPI-613® (devimistat) and related compounds for all indications in certain Asia-Pacific region countries.  Rafael Pharma received an upfront payment of $12.9 million, with the right to an additional $150.3 million contingent on attainment of certain developmental and commercial milestones. Rafael Pharma will also receive low-double digit royalties based on net sales.
  • Rafael Pharma continued to expand its pivotal Phase 3 trial of CPI-613® (devimistat) for patients with relapsed or refractory acute myeloid leukemia (AML) adding clinical trial sites in France, Austria, South Korea and Spain.
  • Rafael Pharma continued to expand its pivotal Phase 3 trial of CPI-613® (devimistat) in combination with modified FOLFIRINOX as a first-line treatment for patients with metastatic pancreatic cancer adding clinical trial sites in France, Korea and Israel.
  • Future Oncology, a peer-reviewed medical journal, published two manuscripts about the details of ongoing Phase 2 and Phase 3 studies at Rafael Pharma.
  • LipoMedix Pharmaceuticals, a clinical-stage company in which we hold a majority interest, was awarded a Horizon 2020 Phase 1 grant for the project: Promitil® - a new 'smart' nanomedicine for cancer chemo-radiotherapy. Horizon 2020 is a research and innovation program of the European Union.

Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings
"During the fourth quarter, our key pharma holding, Rafael Pharma, continued to advance its clinical development programs, including pivotal, multi-jurisdictional, Phase 3 trials of CPI-613® (devimistat).  Rafael Pharma also reached an out-licensing agreement with Ono Pharmaceuticals reflecting the promise of Rafael Pharma's lead drug candidate. 

"In addition, we have established a wholly-owned venture to develop a pipeline of therapeutic compounds including compounds to regulate cancer metabolism.  The venture is pursuing collaborative research agreements with scientists from top academic institutions.

"We also continue our efforts to realize the value of our real estate holdings including our 20-story commercial property and associated garage in Newark, New Jersey."

About Rafael Holdings, Inc.:
Rafael Holdings, Inc., ("Rafael Holdings" or "the Company"), a Delaware corporation, owns interests in commercial real estate assets and clinical-stage pharmaceutical companies. The commercial real estate holdings consist of properties in Newark, New Jersey, Piscataway, New Jersey and in Israel.  The pharmaceutical holdings include interests in Rafael Pharmaceuticals, Inc., a clinical-stage, oncology-focused, pharmaceutical company and in LipoMedix Pharmaceuticals Ltd., a clinical-stage oncology-focused pharmaceutical company based in Israel.

RAFAEL HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)




July 31,



2019


2018

ASSETS










CURRENT ASSETS





Cash and cash equivalents


$

12,024


$

15,803

Trade accounts receivable, net of allowance for doubtful accounts of $122 and $82 at July 31, 2019 and 2018, respectively



450



287

Marketable securities





24,701

Due from Rafael Pharmaceuticals



280



3,300

Prepaid expenses and other current assets



507



421

Total current assets



13,261



44,512








Property and equipment, net



48,733



50,113

Investments – Rafael Pharmaceuticals



70,018



13,300

Investments – Other Pharmaceuticals



2,000



2,000

Investments – Hedge Funds



5,125



4,218

Deferred income tax assets, net



19



In-process research and development and patents



1,575



1,651

Other assets



1,412



1,126








TOTAL ASSETS


$

142,143


$

116,920








LIABILITIES AND EQUITY














CURRENT LIABILITIES







Trade accounts payable


$

795


$

367

Accrued expenses



605



500

Other current liabilities



27



24

Total current liabilities



1,427



891








Due to Related Parties



65



276

Convertible debt, net of discount of $54 – Related Party



14,946



Other liabilities



292



188

Accrued interest on convertible note – Related Party



649



TOTAL LIABILITIES



17,379



1,355








COMMITMENTS AND CONTINGENCIES














EQUITY







Class A common stock, $0.01 par value; 50,000,000 shares authorized, 787,163 shares issued and outstanding as of July 31, 2019 and 2018, respectively



8



8

Class B common stock, $0.01 par value; 200,000,000 shares authorized, 13,142,502 and 11,762,346 shares issued and outstanding as of July 31, 2019 and 2018, respectively



131



118

Additional paid-in capital



112,898



103,636

Accumulated deficit



(5,840)



(1,108)

Accumulated other comprehensive income



3,784



4,043

Total equity attributable to Rafael Holdings, Inc.



110,981



106,697

Noncontrolling interests



13,783



8,868

TOTAL EQUITY



124,764



115,565








TOTAL LIABILITIES AND EQUITY


$

142,143


$

116,920

 

 

RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share data)




Year Ended July 31,



2019


2018

REVENUES:





Rental – Third Party


$

1,452


$

1,275

Rental – Related Party



2,125



2,223

Parking



874



873

Other – Related Party



480



Total Revenue



4,931



4,371








COSTS AND EXPENSES:







Selling, general and administrative



8,821



5,519

Research and development



1,027



995

Depreciation and amortization



1,779



1,698

Loss from operations



(6,696)



(3,841)








Interest income, net



469



16

Net gains resulting from foreign exchange transactions



47



32

Net loss on equity investments





(104)

Gain on sales of marketable securities



330



12

Unrealized gain on Investments – Hedge Funds



907



Gain on disposal of bonus shares





246

Loss before income taxes



(4,943)



(3,639)

Benefit from (provision for) income taxes



19



(8,437)

Net Loss



(4,924)



(12,076)

Net loss attributable to noncontrolling interests



(231)



(427)

Net loss attributable to Rafael Holdings, Inc.


$

(4,693)


$

(11,649)








OTHER COMPREHENSIVE LOSS







Net Loss


$

(4,924)


$

(12,076)

Unrealized loss on marketable securities





(308)

Unrealized gain on available-for-sale securities





1,869

Foreign currency translation adjustments



298



166

Total Comprehensive Loss



(4,626)



(10,349)

Comprehensive income (loss) attributable to noncontrolling interests



173



(107)

Total Comprehensive Loss attributable to Rafael Holdings, Inc.


$

(4,453)


$

(10,456)








Loss per share attributable to Rafael Holdings, Inc. common stockholders:







Basic and diluted


$

(0.35)


$

(0.93)








Weighted average number of shares used in calculation of loss per share:







Basic and diluted



13,275,239



12,485,000

 

 

RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(in thousands, except share data)




Year Ended July 31,



2019


2018

Operating activities





Net loss


$

(4,924)


$

(12,076)

Adjustments to reconcile net loss to net cash used in operating activities:







Depreciation and amortization



1,779



1,698

Deferred income taxes



(19)



8,859

Interest income on Rafael Pharmaceuticals Series D Convertible Note



(848)



Interest income



(37)



Net realized and unrealized gain on sale of marketable securities



(330)



Net realized and unrealized gain on Investments - Hedge Funds



(907)



Provision for doubtful accounts



122



Non-cash compensation



372



104

Amortization of debt discount



17



657

Realized gain on disposal of bonus shares





(246)

Loss on disposal of fixed assets





13

Net gain resulting from foreign exchange transactions





(32)








Change in assets and liabilities:







Trade accounts receivable



(285)



(23)

Other current assets and prepaid expenses



(86)



(258)

Write off of patents



76



Other assets



275



(586)

Accounts payable and accrued expenses



533



(35)

Other current liabilities



3



(10)

Due to Related Party



654



2

Due from Related Party



(280)



Accrued Interest - Related Party



649



Other liabilities



104



118

Net cash used in operating activities



(3,132)



(1,815)








Investing activities







Purchases of property and equipment



(399)



(710)

Proceeds from sale and maturity of marketable securities



25,031



6,670

Purchase of investments





(151)

Cash advances to IDT Corporation, net of repayments





(1,700)

Investment in Rafael Pharmaceuticals



(55,870)



Net cash (used in) provided by investing activities



(31,238)



4,109








Financing activities







Contribution from noncontrolling interest of consolidated entity



4,587



Repayment of loan by Rafael Pharmaceuticals, including interest



3,335



Proceeds from sale of shares



7,777



Proceeds from exercise of options



190



864

Cash advances from IDT Corporation, net of repayments





886

Proceeds from issuance of convertible note



15,000



Net cash provided by financing activities



30,889



1,750

Effect of exchange rate changes on cash and cash equivalents



(298)



3

Net (decrease) increase in cash and cash equivalents



(3,779)



4,047

Cash and cash equivalents at beginning of year



15,803



11,756

Cash and cash equivalents at end of year


$

12,024


$

15,803








Supplemental Schedule of Non-Cash Investing and Financing Activities







Adoption effect of ASU 2016-01


$

39


$

Beneficial conversion feature of convertible debt – related party


$

71


$

Series D Convertible Note and accrued interest converted to Series D Preferred Stock


$

10,848


$

Related Party deposit utilized to purchase Class B Common Stock


$

864


$

Cash payments made for taxes


$


$

Cash payments made for interest


$


$

 

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SOURCE Rafael Holdings, Inc.

Rafael Holdings Reports Fourth Quarter and Full Fiscal Year 2019 Results

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Last Updated: 03-Oct-2019