Stock News Recap: Intec Pharma Ltd. (NASDAQ: NTEC)

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On 18 May 2020, Intec Pharma Ltd. (NASDAQ: NTEC) stock observed trading -95.88% off 52-week high price. On the other end, the stock has been noted 81.40% away from low price over the last 52-weeks. The stock disclosed a move of 10.33% away from 50 day moving average and -50.21% away from 200 day moving average. Moving closer, we can see that shares have been trading 3.03% off 20-day moving average.

Intec Pharma Ltd. (NTEC) recently stated financial results for the fourth quarter and year ended December 31, 2019 and provides a corporate update.

Financial Highlights for the Fourth Quarter Ended December 31, 2019

Research and development expenses, net, for the three-month period ended December 31, 2019 were about $1.8M, a decrease of $8.5M, or about 82.5%, contrast with about $10.3M in the three-month period ended December 31, 2018. The decrease was primarily Because of a decrease in expenses related to the ACCORDANCE Phase 3 study of AP-CD/LD and the Open Label Extension study, both of which were completed during 2019 and a decrease in expenses related to the scale up activities for the commercial scale production capabilities for AP-CD/LD at LTS.

General and administrative expenses for the three-month period ended December 31, 2019 were about $1.8M, a decrease of $300,000, or about 14.3%, contrast with about $2.1M in the three-month period ended December 31, 2018. The decrease was primarily Because of a decrease in professional services and expenses related to investor relations activities. This decrease was offset by a raise in insurance expenses.

Impairment of long-lived assets was recorded as the top-line results of the ACCORDANCE trial were considered a triggering event for impairment. For the three-month period ended December 31, 2019, the Company recorded an impairment charge of about $3.9M. This impairment represents the excess carrying value of the long-lived assets contrast to its fair value.

The Company recorded other income for the three-month period ended December 31, 2019, of $1.5M on conclusion of the program with Novartis.

Net loss for the three-month period ended December 31, 2019 was about $6.6M, a decrease of $6.0M, or about 47.6%, contrast with the net loss for the three-month period ended December 31, 2018 of about $12.6M. The decrease was mainly Because of the decrease in research and development expenses as detailed above and the other income associated with the conclusion of the Novartis program offset by the impairment of the Company’s long-lived assets.

Loss per ordinary share for the fourth quarter ended December 31, 2019 was $0.19 contrast with $0.38 for the fourth quarter ended December 31, 2018.

Financial Highlights for the Year Ended December 31, 2019

Research and development expenses, net, for the year ended December 31, 2019 were about $26.7M, a decrease of $8.7M, or about 24.6%, contrast with about $35.4M in the previous year period. The decrease was primarily Because of a decrease in expenses related to the ACCORDANCE Phase 3 study of AP-CD/LD and the Open Label Extension study, both of which were completed during 2019.

General and administrative expenses for the year ended December 31, 2019 were about $8.3M, a raise of $400,000, or about 5.1%, contrast with about $7.9M in the year ended December 31, 2018. The increase was primarily related to the increase in insurance expenses. This increase was offset by a decrease in professional services.

Impairment of long-lived assets was recorded as the top-line results of the ACCORDANCE trial were considered a triggering event for impairment. For the year ended December 31, 2019, the Company recorded an impairment charge of about $13.7M. This impairment represents the excess carrying value of the long-lived assets contrast to its fair value.

The Company recorded other income for the year ended December 31, 2019, of $1.5M on conclusion of the program with Novartis.

Net loss for the fiscal year ended December 31, 2019 was about $47.6M, a raise of $4.1M, or about 9.4%, contrast with the net loss for the year ended December 31, 2018 of about $43.5M. The increase was mainly Because of the impairment of the Company’s long-lived assets and a raise in general and administrative expenses as detailed above offset by the other income associated with the conclusion of the Novartis program and the decrease in research and development expenses, as detailed above.

Loss per ordinary share for the full-year 2019 was $1.41 contrast with $1.40 for the full-year 2018.

As of December 31, 2019, the Company had cash and cash equivalents and marketable securities of about $10.1M contrast with about $40.6M at December 31, 2018.

Net cash used in operating activities was about $29.0M for the year ended December 31, 2019 contrast with net cash used in operating activities of about $39.1M for the year ended December 31, 2018. This decrease resulted primarily from a decrease in research and development activities in the amount of about $8.7M and changes in operating asset and liability items of about $1.2M.

The Company had negative cash flow from investing activities of about $3.2M for the year ended December 31, 2019 contrast with negative cash flow from investing activities of about $9.3M for the year ended December 31, 2018. This decrease resulted primarily from a reduction of about $2.1M in investment in other assets related to the establishment of the commercial scale production capabilities for AP-CD/LD at LTS and a decrease in purchase of property and equipment in the amount of about $3.8M.

The Israel based company Intec Pharma Ltd. moved with change of 10.44% to $0.24 with the total traded volume of 8652642 shares in recent session versus to an average volume of 3875.96K. NTEC’s shares are at -22.40% for the quarter and driving a -95.93% return over the course of the past year and is now at -56.50% since this point in 2018.  The average volatility for the week and month was at 6.38% and 14.10% respectively.

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