Rafael Holdings Reports Third Quarter Fiscal 2023 Financial Results and Provides Business Update

NEWARK, N.J., June 13, 2023 (GLOBE NEWSWIRE) -- Rafael Holdings, Inc. (NYSE: RFL) today reported its financial results for the third quarter of fiscal 2023 for the three months ended April 30, 2023, as well as the nine months ended April 30, 2023.

“We continue to seek to expand our portfolio through strategic investments in companies with near term value inflection points which have the potential to generate value for our stockholders. We believe that the current dislocation in the capital markets makes this a particularly opportune time,” said Bill Conkling, CEO of Rafael Holdings. “In May and June, we made an initial investment and entered into an agreement to make a follow-on strategic investment in Cyclo Therapeutics in support of a Phase 3 registrational clinical trial for patients with Niemann-Pick Disease Type C.”

Rafael Holdings, Inc. Third Quarter Fiscal Year 2023 Financial Results

As of April 30, 2023, we had cash, cash equivalents and marketable securities of $82.4 million.

For the three months ended April 30, 2023, we incurred a net loss from continuing operations of $1.5 million, or $0.06 per share. For the same period in the prior year, we incurred a net loss from continuing operations of $5.0 million, or $0.25 per share.

Research and development expenses were $0.7 million for the three months ended April 30, 2023. For the same period in the prior year, research and development expenses were $1.4 million. The year over year reduction in spending is due to the winding down of the early-stage programs, including at Barer Institute.

Our general and administrative expenses from continuing operations were $2.3 million for the three months ended April 30, 2023, which includes $0.6 million in non-cash stock-based compensation expense. For the same period in the prior year, general and administrative expenses were $3.3 million which included $1.0 in non-cash stock-based compensation expense.

Rafael Holdings, Inc. Nine Month Fiscal Year 2023 Financial Results

For the nine months ended April 30, 2023, we incurred a net loss from continuing operations of $9.9 million, or $0.42 per share. For the same period in the prior year, we incurred a net loss from continuing operations of $135.9 million, or $6.07 per share, which included a $25 million loss on the write-off of a receivable pursuant to a line of credit, a loss of $10.1 million on the write-off of a related party receivable and a $79.1 million charge for the impairment of our investment in Cornerstone Pharmaceuticals, Inc.

Research and development expenses were $5.0 million for the nine months ended April 30, 2023, which includes $0.5 million in severance costs. For the same period in the prior year, research and development expenses were $6.9 million.

Our general and administrative expenses were $7.5 million for the nine months ended April 30, 2023, which includes $0.4 million in severance costs as well as $1.6 million net, of non-cash stock-based compensation expense. For the same period in the prior year, general and administrative expenses were $13.9 million which included $5.9 million in severance costs as well as a net, non-cash credit of $2.1 million of stock-based compensation expense.

About Rafael Holdings, Inc.

Rafael Holdings is a holding company with interests in clinical and early-stage pharmaceutical companies, including an investment in Cornerstone Pharmaceuticals, Inc., formerly known as Rafael Pharmaceuticals Inc., a cancer metabolism-based therapeutics company. The Company’s primary focus is to invest in, fund, and develop novel cancer therapies. We further seek to expand our portfolio through opportunistic investments in therapeutics which address high unmet medical needs including through acquisitions and strategic investments.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our expectations surrounding the potential, safety, efficacy, and regulatory and clinical progress of our product candidates; plans regarding the further evaluation of clinical data; and the potential of our pipeline, including our internal cancer metabolism research programs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the impact of public health threats, including COVID-19, on our business and operations; clinical trials of product candidates may not be successful; our pharmaceutical companies may not be able to develop any medicines of commercial value; our pharmaceutical companies may not be successful in their efforts to identify or discover potential product candidates; the manufacturing and manufacturing development of our products and product candidates present technological, logistical and regulatory risks, each of which may adversely affect our potential revenue; potential unforeseen events during clinical trials could cause delays or other adverse consequences; risks relating to the regulatory approval process; interim, topline and preliminary data may change as more patient data become available, and are subject to audit and verification procedures that could result in material changes in the final data; our product candidates may cause serious adverse side effects; ongoing regulatory obligations; effects of significant competition; unfavorable pricing regulations, third-party reimbursement practices or healthcare reform initiatives; product liability lawsuits; failure to attract, retain and motivate qualified personnel; the possibility of system failures or security breaches; risks relating to intellectual property and significant costs as a result of operating as a public company. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended July 31, 2022, and our other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Contact:
Barbara Ryan
[email protected]
(203) 274-2825