Biostage names three new directors, cuts net loss
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Biostage CEO Jim McGorry.
Holliston biotech startup Biostage has added three new members to its board of directors simultaneous to its third-quarter earnings report showing a slower cash burn rate as the company gears up for U.S. Food & Drug Administration submissions.
All three come from the finance side of the industry, including Ting Li, a 20-year investment banking veteran currently a managing partner at China-based Donghai Securities CO., Ltd. Li’s appointment comes as the company looks to bring its esophagus-regenerating bioengineered organs to the Chinese markets, where treatment of esophageal conditions is a large unmet need.
"I believe my experience forging relationships between investors and enterprises will support Biostage's access to the capital needed to support its strategy to bring its technology to China,” Li said in a press release.
New appointees Matthew Dallas of AVEO Oncology and Jeffrey Young of Axio Biotherapeutics are both chief finance officers for publicly owned biotechs in the Boston area. Both bring over 20 years of financial management experience. Both Dallas and Young will be members of the company’s audit committee.
For the quarter, the company reported a net loss of $2.1 million, compared to $3.2 million lost over the same period last year. That decrease is due to a $1.1 million decrease in research and development costs, the company said.
For the year, the company has been able to cut its net loss even more, reporting $5.7 million in losses compared to $10.7 million for the first three quarters of 2017.
As of Sept. 30, Biostage said it has just $3.5 million in cash on-hand and no debt.
With grants to continue research and development, the company hopes to submit an investigational new drug filing to the FDA in mid-2019.
The company also landed five new clinical advisors and $1.1 million for the second phase of a fast-track Small Business Innovation Research grant from the Eunice Kennedy Shriver National Institute of Child Health and Human Development.
“Our confidence in our technology grew through the feedback and insight of five new clinical advisors,” CEO Jim McGorry said in a press release. “This scientific validation from key opinion leaders on the forefront of esophageal disease supports that we are on the right track.”
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