BrainStorm Announces Third Quarter 2017 Financial Results

HACKENSACK, N.J. and PETACH TIKVAH, Israel, Oct. 17, 2017

"We have had a very active third quarter culminating in the initiation of our Phase 3 trial investigating NurOwn^® in amyotrophic lateral sclerosis(ALS), as announced yesterday.  The first patients have enrolled into the trial, and we look forward to data in 2019," said Chaim Lebovits, president and chief executive officer of BrainStorm. "ALS is a devastating disease with very few treatment options for patients. In our placebo-controlled phase 2 trial NurOwn® demonstrated significant clinical benefit for ALS patients. We look forward to providing updates as the Phase 3 trial progresses."

Third Quarter Highlights:

• Awarded a $16 million grant from the California Institute for Regenerative Medicine (CIRM) to support the Phase 3 trial of NurOwn^® in ALS.  A milestone payment of $5.5 million, representing approximately 30% of the grant, has been received. The trial will evaluate the safety and efficacy of repeated administrations of NurOwn^® and is expected to enroll approximately 200 participants.
• Entered into agreements with Massachusetts General Hospital, California Pacific Medical Center, and University of California-Irvine Medical Center to participate in the Phase 3 trial of NurOwn^® in ALS.
• Signed a definitive agreement with Worldwide Clinical Trials as the clinical research organization (CRO) for the Phase 3 NurOwn^® trial.

Financial Results for the Third Quarter Ended September 30, 2017

• Research and development expenses, net for the three months ended September 30, 2017 and 2016 were $1,168,000 and $790,000, respectively.
• General and administrative expenses for the three months ended September 30, 2017 and 2016 were $1,224,000 and $848,000, respectively.
• Net loss for the three months ended on September 30, 2017 was $2,403,000, as compared to a net loss of $1,606,000 for the three months ended September 30, 2016. Net loss per share for the three months ended September 30, 2017 and 2016 was $0.13 and $0.09, respectively.
• At September 30, 2017, the Company had cash, cash equivalents and short-term bank deposits amounting to $10,547,000.

Financial Results for the Nine Months Ended September 30, 2017

• Research and development expenses, net for the nine months ended September 30, 2017 and 2016 were $2,544,000 and $1,927,000, respectively.
• General and administrative expenses for the nine months ended September 30, 2017 and 2016 were $2,693,000 and $2,506,000 respectively.
• Net loss for the nine months ended on September 30, 2017 was $5,228,000 as compared to a net loss of $4,358,000 for the nine months ended September 30, 2016. Net loss per share for the nine months ended September 30, 2017 and 2016 was $0.28 and $0.23, respectively.

Conference Call on Tuesday, October 17, 2017
Members of BrainStorm's senior management team, including Chaim Lebovits, CEO, and Ralph Kern, M.D., MHSc, COO and CMO, will host a conference call and live webcast for the investment community on Tuesday, October 17, 2017 at 8:30am Eastern Time.  The details are as follows: