SAN DIEGO, June 9, 2016 /PRNewswire/ -- OncoSec Medical
Incorporated ("OncoSec") (NASDAQ: ONCS), a company developing
DNA-based intratumoral cancer immunotherapies, today announced key
corporate objectives as well as financial results for the third
quarter and year to date ended April 30,
2016.
"As we enter the next quarter, we are confident in our team's
mission to deliver safer and more effective intratumoral
immunotherapies to provide long-term benefits for cancer patients.
We believe the advancements in our technology as well as the
preclinical and clinical data generated to date hold the greatest
potential to provide meaningful benefit to patients and investment
value to OncoSec's shareholders," said Punit Dhillon, President and CEO of OncoSec. "We
have sufficient funds to advance our development efforts for the
combination of ImmunoPulse™ IL-12 with anti-PD-1/PD-L1 in melanoma
as well as our next ImmunoPulse product."
FINANCIAL RESULTS
For the third quarter of
fiscal 2016 and the nine months ended April
30, 2016, OncoSec reported a net loss of $6.3 million and $20.3
million, or $0.37 per share
and $1.27 per share, respectively,
compared to a net loss of $6.0
million and $14.7 million, or
$0.48 per share and $1.19 per share, respectively, for the same
periods last year. The increase in net loss for the three months
ended April 30, 2016, compared with
the same period in 2015, resulted primarily from an increase of
$1.0 million in personnel costs,
inclusive of non-cash stock-based compensation, offset by a
decrease in engineering costs, outside services and bonuses as
compared to the prior year. The increase in net loss for the nine
months ended April 30, 2016, compared
with the same period in 2015, resulted primarily from (i) an
increase of $3.5 million in personnel
costs, inclusive of non-cash stock-based compensation; and (ii) an
increase of $1.2 million in patient
treatment costs related to our clinical trials. There were no
revenues for the three and nine months ended April 30, 2016 or April
30, 2015.
Research and development expenses were $3.4 million and $11.1
million for the third quarter of fiscal 2016 and the nine
months ended April 30, 2016,
respectively, compared to $3.9
million and $9.3 million for
the same periods in 2015. General and administrative expenses were
$2.9 million and $9.2 million for the third quarter of fiscal 2016
and the nine months ended April 30,
2016, compared to $2.1 million
and $5.4 million for the same periods
in 2015.
At April 30, 2016, OncoSec had
$24.0 million in cash and cash
equivalents, as compared to $32.0
million of cash and cash equivalents at July 31, 2015; however, OncoSec raised an
additional $9.1 million in net
proceeds from a registered direct offering on May 26, 2016. OncoSec expects these funds to be
sufficient to allow it to continue to operate its business for at
least the next 12 months.
About OncoSec Medical Incorporated
OncoSec is a
biotechnology company developing DNA-based intratumoral
immunotherapies for the treatment of cancer. The Company's
investigational technology, ImmunoPulse™, is designed to enhance
the local delivery and uptake of DNA-based immune-targeting agents,
such as interleukin-12 (IL-12). In Phase I and II clinical trials,
OncoSec's lead program, ImmunoPulse™ IL-12, demonstrated a
favorable safety profile and evidence of anti-tumor activity in the
treatment of various skin cancers as well as the potential to
initiate a systemic immune response. ImmunoPulse™ IL-12 is
currently in clinical development for several indications,
including metastatic melanoma and triple-negative breast cancer. In
addition to ImmunoPulse™ IL-12, the Company is also seeking to
identify and develop new immune-targeting agents for use with the
ImmunoPulse™ platform. For more information, please
visit www.oncosec.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as "potential," "will," "expect,"
"believe," and similar references to future periods.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based on
management's current preliminary expectations and are subject to
risks and uncertainties, which may cause our results to differ
materially and adversely from the statements contained herein.
Potential risks and uncertainties that could cause actual results
to differ from those predicted include, among others, the
following our ability to raise additional funding necessary
to fund continued operations; delays and other uncertainties
inherent in pre-clinical studies and clinical trials, such as the
ability to enroll patients in clinical trials and the risk of
adverse events; our ability to recruit and retain qualified
personnel; unexpected new data, safety and technical issues; and
the other factors discussed in OncoSec's filings with the
Securities and Exchange Commission.
Undue reliance should not be placed on forward-looking
statements, which speak only as of the date they are made. OncoSec
disclaims any obligation to update any forward-looking statements
to reflect new information, events or circumstances after the date
they are made, or to reflect the occurrence of unanticipated
events.
|
OncoSec Medical
Incorporated
|
|
Condensed Balance
Sheets
|
|
|
|
(unaudited)
April 30,
2016
|
|
July 31,
2015
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24,018,782
|
|
$
|
32,035,264
|
|
Prepaid expenses and
other current assets
|
|
1,000,503
|
|
1,532,717
|
|
Total Current
Assets
|
|
25,019,285
|
|
33,567,981
|
|
Property and
equipment, net
|
|
3,062,459
|
|
1,807,982
|
|
Other long-term
assets
|
|
188,841
|
|
214,127
|
|
Total
Assets
|
|
$
|
28,270,585
|
|
$
|
35,590,090
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
3,160,331
|
|
$
|
2,360,505
|
|
Accrued
compensation
|
|
517,170
|
|
501,446
|
|
Total Current
Liabilities
|
|
3,677,501
|
|
2,861,951
|
|
Other long-term
liabilities
|
|
606,173
|
|
32,518
|
|
Total
Liabilities
|
|
4,283,674
|
|
2,894,469
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common stock
authorized - 160,000,000 common shares with a par value of
$0.0001, common stock issued and outstanding — 16,971,214 and
14,820,854 common shares as of April 30, 2016 and
July 31, 2015, respectively
|
|
25,162
|
|
24,947
|
|
Additional paid-in
capital
|
|
81,783,814
|
|
71,572,714
|
|
Warrants issued and
outstanding — 3,000,875 and 1,895,102 warrants as of April 30,
2016 and July 31, 2015, respectively
|
|
9,110,598
|
|
7,704,103
|
|
Accumulated
deficit
|
|
(66,932,663)
|
|
(46,606,143)
|
|
Total Stockholders'
Equity
|
|
23,986,911
|
|
32,695,621
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
28,270,585
|
|
$
|
35,590,090
|
|
OncoSec Medical
Incorporated
|
|
Condensed
Statements of Operations (unaudited)
|
|
|
|
Three Months
Ended April 30,
2016
|
|
Three Months
Ended April 30,
2015
|
|
Nine Months
Ended
April 30, 2016
|
|
Nine Months
Ended
April 30, 2015
|
|
Revenue
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
3,376,757
|
|
3,932,322
|
|
11,149,652
|
|
9,293,484
|
|
General and
administrative
|
|
2,874,362
|
|
2,053,964
|
|
9,174,406
|
|
5,371,245
|
|
Loss from
operations
|
|
(6,251,119)
|
|
(5,986,286)
|
|
(20,324,058)
|
|
(14,664,729)
|
|
Provision for income
taxes
|
|
290
|
|
1,059
|
|
2,462
|
|
1,969
|
|
Net loss
|
|
$
|
(6,251,409)
|
|
$
|
(5,987,345)
|
|
$
|
(20,326,520)
|
|
$
|
(14,666,698)
|
|
Basic net loss per
common share
|
|
$
|
(0.37)
|
|
$
|
(0.48)
|
|
$
|
(1.27)
|
|
$
|
(1.19)
|
|
Diluted net loss per
common share
|
|
$
|
(0.37)
|
|
$
|
(0.48)
|
|
$
|
(1.27)
|
|
$
|
(1.19)
|
|
Weighted average
shares used in computing basic net loss per common
share
|
|
16,971,214
|
|
12,349,693
|
|
15,955,116
|
|
12,347,450
|
|
Weighted average
shares used in computing diluted net loss per common
share
|
|
16,971,214
|
|
12,349,693
|
|
15,955,116
|
|
12,347,450
|
|
OncoSec Medical
Incorporated
|
|
Condensed
Statements of Cash Flows (unaudited)
|
|
|
|
Nine
Months
Ended
April 30,
2016
|
|
Nine
Months
Ended
April 30,
2015
|
|
Operating
activities
|
|
|
|
|
|
Net loss
|
|
$
|
(20,326,520)
|
|
$
|
(14,666,698)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
253,664
|
|
601,777
|
|
Loss on disposal of
property and equipment
|
|
41,989
|
|
4,325
|
|
Stock-based
compensation
|
|
4,676,215
|
|
1,650,550
|
|
Common stock issued
for services
|
|
—
|
|
59,250
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Decrease (Increase) in
prepaid expenses and other current assets
|
|
532,214
|
|
(550,688)
|
|
Decrease in other
long-term assets
|
|
25,286
|
|
6,625
|
|
Increase in accounts
payable and accrued liabilities
|
|
461,617
|
|
466,051
|
|
Increase in accrued
compensation
|
|
15,724
|
|
—
|
|
Increase in other
long-term liabilities
|
|
573,654
|
|
—
|
|
Net cash used in
operating activities
|
|
(13,746,157)
|
|
(12,428,808)
|
|
Investing
activities
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(1,156,420)
|
|
(761,693)
|
|
Net cash used in
investing activities
|
|
(1,156,420)
|
|
(761,693)
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from issuance
of common stock and warrants
|
|
7,500,010
|
|
—
|
|
Payment of financing
and offering costs
|
|
(613,915)
|
|
—
|
|
Proceeds from exercise
of warrants and stock options
|
|
—
|
|
776,995
|
|
Net cash provided by
financing activities
|
|
6,886,095
|
|
776,995
|
|
Net (decrease) in
cash
|
|
(8,016,482)
|
|
(12,413,506)
|
|
Cash and cash
equivalents, at beginning of period
|
|
32,035,264
|
|
37,852,694
|
|
Cash and cash
equivalents, at end of period
|
|
$
|
24,018,782
|
|
$
|
25,439,188
|
|
|
|
|
|
|
Supplemental
disclosure for cash flow information:
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
|
|
$
|
—
|
|
$
|
—
|
|
Income
taxes
|
|
$
|
2,463
|
|
$
|
1,969
|
|
|
|
|
|
|
Noncash investing and
financing transaction:
|
|
|
|
|
|
Fair value of
placement agent warrants issued in the public offering
|
|
$
|
242,143
|
|
$
|
—
|
|
Issuance of common
stock in connection with a contractual agreement
|
|
$
|
55,500
|
|
$
|
—
|
|
Noncash expiration of March 2011 warrants
|
|
$
|
431,981
|
|
$
|
—
|
|
R&D Equipment in use, but, financed through accounts payable
and accrued liabilities
|
|
$
|
393,718
|
|
$
|
—
|
|
|
|
|
|
|
|
Contact
Media Relations:
Mary Marolla
OncoSec Medical Incorporated
855-662-6732
media@oncosec.com
Logo -
http://photos.prnewswire.com/prnh/20120905/LA68078LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/oncosec-announces-third-quarter-and-ytd-results-for-fiscal-year-2016-300282568.html
SOURCE OncoSec Medical Incorporated