Can Bellicum Pharmaceuticals Inc. (NASDAQ: BLCM) Survive?


As Bellicum Pharmaceuticals Inc. (NASDAQ: BLCM) embarks on multiple clinical programs following key regulatory clearances, the spotlight is quickly turning to the company’s liquidity position.

Approvals by the FDA and EMA (in European) for clinical trials have boosted investor confidence that Bellicum has promising candidates in its pipeline. But the question that investors are asking is whether the company has enough funds to develop its candidates into marketable products.

What’s BLCM developing?

Bellicum Pharmaceuticals Inc. (NASDAQ: BLCM) has a number of cancer drug candidates in its pipeline. Those candidates include BPX-601 GoCAR-T and BPX-701 TRC, which are due to enter Phase 1 clinical trial. The two candidates have received clearance from both the FDA and EMA to pave the way for them to enter clinical studies.

Another candidate in the company’s portfolio called BPX-501 has already been issued with orphan drug designation in the U.S. and the European Union. BLCM said that it has been in talks with EMA and has reached initial agreement for a pathway to filing for marketing approval of the drug.

Bellicum Pharmaceuticals Inc. (NASDAQ: BLCM) and its need for cash

Bellicum Pharmaceuticals Inc. (NASDAQ: BLCM) will need cash to develop its various pipeline candidate into products that it can bring to market. But where are the resources? If you listen to the management of Bellicum speak, you get the impression that there is no near-term cash headache for the company.

The company revealed in its 2Q2016 and 1H2016 reports that it finished the latest quarter with cash and equivalents totaling $136.6 million. By the end of 2016, the cash amount is expected to have declined to about $80 to $90 million, but there is no cause for alarm.

The management clearly stated that whether $80 million or $90 million, the amount at the end of 2016 could be enough to fund operations, including capital projects, through 2017. It is not clear what will happen after 2017, but Bellicum appears to be hoping that after that time it would have made progress to allow it access to more funds.

What transpired in 2Q?

Bellicum Pharmaceuticals Inc. (NASDAQ: BLCM) generated revenue of $0.1 million in 2Q2016, which increased 25% over the same period last year and outpaced the consensus estimate by $0.01 million. But EPS loss of $0.61 in the latest quarter missed expectation by $0.04.


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