PolarityTE, Inc. (PTE), a biotechnology company developing regenerative tissue products and biomaterials, on Tuesday provided preliminary first-quarter results and also provided an update on actions it is taking in light of the COVID-19 pandemic.
Based on preliminary, unaudited financial results, the company estimates first-quarter 2020 SkinTE revenue in a range of $350,000 to $450,000, down from $714,000 in the preceding fourth quarter of 2019.
The reduction in revenue reflects a decrease in the average sizes of wounds treated in the first quarter, and also due to the impact in March of the COVID-19 pandemic, including stay-at-home orders, declines in elective surgical procedures, and overall disruptions to the healthcare system.
PolarityTE said is currently conducting its financial close procedures for the first quarter and is unable to provide a more precise estimate of its financial results at this time.
The company will report its full financial results for the first quarter during its earnings announcement planned for May 11, 2020.
PolarityTE closed the first quarter with approximately $39.5 million of cash on hand and also received a $3.6 million loan under the Paycheck Protection Program operated by the U.S. Small Business Administration.
The company said it is seeing reduced SkinTE case volume due to the COVID-19 pandemic, and the collateral consequences from stay-at-home orders and as hospitals cut back their operations outside of acute and COVID-19 related procedures.
Therefore, PolarityTE is taking additional actions to further reduce and control expenses. The company is reducing payroll expense as well as discretionary spend across the organization to minimal levels. It is also managing manufacturing capacities to ensure sufficient levels to support current procedure volumes.
PolarityTE has adopted a 10 percent salary and wage reduction for at-will employees and key executives effective April 19, 2020, including David Seaburg, Chief Executive Officer, and Richard Hague, Chief Operating Officer.
PolarityTE is ensuring continuity in its operations to support healthcare providers who are treating patients in acute situations (e.g., traumatic injuries, burn wounds, and limb salvage), even as it remains prepared to accelerate operations when other surgical procedures begin to ramp back up. The company expects this to occur later in the year.
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