ImmuCell posts mixed Q2 results, higher product development costs
Screen shot/ImmuCell
Michael F. Brigham, ImmuCell Corp.'s president and CEO, at company headquarters in a video about the recent building expansion.
ImmuCell Corp. (Nasdaq: ICCC), a Portland biotech company that makes preventive health products for beef and dairy cattle, on Thursday reported a 9% second-quarter increase in product sales and a widening net loss amid higher expenses related to product development.
Total product sales increased by 9%, or $265,000, to $2.97 million in the quarter that ended on June 30, compared to the same period a year ago.
The company also posted a net loss of $766,000, or 11 cents a share, during the second quarter, up from a net loss of $627,000, or 9 cents a share, in the same period last year.
Product development expenses in the second quarter amounted to $1.1 million, compared to $820,000 a year earlier.
In late-morning trading, shares of ImmuCell were down 1.38%, to $5.50.
Thursday's earnings report comes two months after the company received a $500,000 loan from the Maine Technology Institute to boost production capacity.
On Friday, MTI President Brian Whitney told Mainebiz, "ImmuCell is a vital cog in greater Portland's burgeoning animal health cluster."
With the MTI funding, ImmuCell intends to ramp up production of its First Defense treatment for E. coli in newborn calves and to complete the development of ReTain, a treatment for a common disease in lactating cows that harms the dairy industry by about $2 billion a year.
Mihael F. Brigham, ImmuCell's president and CEO, noted in a news release Thursday that most of the company's product development expenses were related to its ReTain product development and commercial scale-up initiative. He also said the company had boosted production of First Defense during the public health crisis.
"The COVID-19 pandemic has changed the way we operate, but our dedicated team has been flexible and creative pushing First Defense production during these extremely difficult times and challenging work conditions,” he said.
He also said the company had cut the order backlog to about $945,000 as of June 30, from about $1.4 million as of March 31.
"The investment to increase our First Defense production capacity remains on budget and close to on-time completion, despite COVID-19 related challenges," he added.
Concerning ReTain product development, Brigham said ImmuCell is proceeding on plan with its next submission to the U.S. Food and Drug Administration's Chemistry Manufacturing and Controls Technical Section during the fourth quarter of this year. That will be followed by a six-month FDA review.
The company, which recently completed construction of a $21 million production facility for ReTain in Portland, said in a presentation to investors that it is targeting for 2021 FDA approval and the market launch.
A video tour of the new facility is available here.
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