MARLBOROUGH, Mass.,
Nov. 10, 2016 /PRNewswire/
-- RXi Pharmaceuticals Corporation (NASDAQ: RXII), a
clinical-stage company developing innovative therapeutics that
address significant unmet medical needs, today reported its
financial results for the third quarter ended September 30, 2016, and provided a business
update.
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"In the third quarter of 2016, RXi has once again been able to
keep its cash burn in line with our projections, while continuing
the clinical development programs as planned," said Dr.
Geert Cauwenbergh, President and CEO
of RXi Pharmaceuticals. He further added, "In recent weeks we
announced an exclusive option to acquire MirImmune, Inc., a small
biotech company that uses our proprietary RNAi technology in
the field of cell therapy and immune-oncology. We are excited that
this potential acquisition would allow RXi to embark on a
significant path forward in the development of novel cancer
therapeutics. In the past years our Company has shown, through its
own clinical programs and external collaborations, that its
uniquely structured RNAi compounds are effective in various animal
and tissue culture models, as well as in the treatment of
hypertrophic scarring, a human clinical model for fibrosis. While
we continue to work toward an acquisition of MirImmune, we expect
to provide updates on most of our clinical and consumer health
programs before the end of 2016, as well as an outlook on projects,
timelines and milestones for the combined company in the first
quarter of 2017. We continue to focus on building value for our
shareholders by creating novel therapeutics, for a better life for
patients."
The Company will host a conference call today at 4:30 p.m.
EST to discuss financial results
and provide an update on the Company. The webcast link will be
available under the "Investors – Event Calendar" section of the
Company's website, www.rxipharma.com. The event may also be
accessed by dialing toll-free in the
United States and Canada:
+1 (888) 674-0219. International participants may access the event
by dialing: +1 (862) 255-5367. An archive of the webcast will be
available on the Company's website approximately two hours after
the presentation.
Select Third Quarter 2016 Financial Highlights
Cash Position
At September 30, 2016, the Company
had cash, cash equivalents and short-term investments of
approximately $4.4 million,
compared with $10.6 million at
December 31, 2015.
Research and Development Expenses
Research and development expenses for the quarter ended
September 30, 2016 were $1.5 million, compared with $1.7 million for the quarter ended September 30, 2015. Research and development
expenses decreased from the prior year's quarter primarily due to
manufacturing expenses for the RXI-109 drug product completed in
the second half of 2015, offset by increases in manufacturing and
clinical trial-related costs for Samcyprone™. Research and
development expenses further decreased due to a reduction in
stock-based compensation expense related to the full vesting of
stock options granted in 2012.
General and Administrative Expenses
General and administrative expenses for the quarter ended
September 30, 2016 were $0.7 million as compared with $0.8 million for the quarter ended September 30, 2015. The decrease in general and
administrative expenses was primarily due to a decrease in
stock-based compensation expense related to the full vesting of
stock options granted in 2012, offset by an increase in expenses
related to the use of outside professional services due to the
Company's increased business development activities in line with
its key corporate initiatives.
Net Loss
Net loss for the quarter ended September
30, 2016 was $2.2 million,
compared with $2.5 million for the
quarter ended September 30, 2015. Net
loss decreased from the prior year's quarter primarily due to the
change in research and development expenses, as discussed
above.
Select Business and Corporate Highlights
RXi has developed a robust self-delivering RNAi (sd-rxRNA®)
therapeutic platform where drug-like and delivery properties are
built directly into the compound itself. There is no need for
delivery vehicles for local applications and our self-delivering
platform has been shown to be compatible with various systemic
systems. Due to the fact these compounds can be designed to
selectively block the expression of any target in the genome, our
technology is applicable to a broad spectrum of therapeutic
areas.
In March 2015, MirImmune, Inc., a
privately-held company focused on the development of next
generation immunotherapies for the treatment of cancer, entered
into an exclusive license agreement for use of RXi's sd-rxRNA
technology in developing innovative cell-based cancer
immunotherapies. Since that time, MirImmune's progress in
cell therapy using RXi's technology has formed a strong foundation
for therapeutic development in the immuno-oncology space.
Last month, RXi entered into an exclusive option to acquire
MirImmune, Inc., in consideration for a number of shares equal to
19.99% of the then outstanding shares of common stock of RXi, plus
additional potential consideration contingent on MirImmune reaching
certain milestones.
Upon RXi's exercise of its option to acquire MirImmune, the
acquisition would not only allow the Company to create value for
our shareholders, it more importantly sets the stage for what
could potentially be a transformational change in the way we treat
patients with various malignancies.
The Company's goal, through internal research and external
partnerships, is to develop more tolerable treatments resulting in
better quality of life and extended survival for patients. This
approach is a key first step into the field of cell-based
therapies, where sd-rxRNA has numerous advantages over other RNAi
technologies.
About RXi Pharmaceuticals
RXi Pharmaceuticals Corporation (NASDAQ: RXII) is a
clinical-stage company developing innovative therapeutics that
address significant unmet medical needs. Building on the
pioneering discovery of RNAi, the Company's discovery and clinical
development programs are based on its proprietary self-delivering
RNAi (sd-rxRNA®) platform and Samcyprone™, a small molecule topical
immunomodulator. Current clinical development programs include
RXI-109, an sd-rxRNA, for the treatment of dermal and ocular
scarring, and Samcyprone™ for the treatment of such disorders as
warts, alopecia areata, non-malignant skin tumors and cutaneous
metastases of melanoma. RXi's robust pipeline, coupled with
an extensive patent portfolio, provides for multiple product and
business development opportunities across a broad spectrum of
therapeutic areas. We are committed to being a partner of choice
for academia, small companies, and large multinationals. We welcome
ideas and proposals for strategic alliances, including in- and
out-licensing opportunities, to advance and further develop
strategic areas of interest. Additional information may be found on
the Company's website, www.rxipharma.com.
Forward-Looking Statements
Except for the historical information contained herein, the
matters set forth in this press release, including statements
regarding the Company's plans or other expectations, goals,
objectives, strategies, timelines and legal matters are
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including the risks and uncertainties associated with: risks that
the potential acquisition of MirImmune may not proceed; the actual
realization of anticipated benefits of the purchase of MirImmune;
risks related to our ability to control the timing of the purchase
of MirImmune; risks that we may not be able to successfully develop
and commercialize our product candidates; risks that product
development and clinical studies may be delayed, not proceed as
planned and/or be subject to significant cost over-runs; risks
related to the development and commercialization of products by
competitors; risks related to our ability to control the timing and
terms of collaborations with third parties; risks that other
companies or organizations may assert patent rights preventing us
from developing or commercializing our product candidates and other
risks detailed from time to time in the Company's most recent
Annual Report on Form 10-K and other documents subsequently filed
with or furnished to the Securities and Exchange Commission. These
forward-looking statements are based on current information that
may change and you are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this filing, as actual results may differ from those
contemplated by our forward-looking statements. All forward-looking
statements are qualified in their entirety by this cautionary
statement, and the Company undertakes no obligation to revise or
update any forward-looking statement to reflect events or
circumstances after the date of this press release.
Contact
RXi Pharmaceuticals Corporation
Tamara McGrillen
508-929-3646
tmcgrillen@rxipharma.com
RXi PHARMACEUTICALS
CORPORATION
|
CONDENSED
STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except share and per share
data) (Unaudited)
|
|
|
|
For the
Three
|
|
For the
Three
|
|
For the
Nine
|
|
For the
Nine
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
September 30, 2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September
30, 2015
|
|
Net
revenues
|
$
—
|
|
$
—
|
|
$
19
|
|
$
34
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
1,464
|
|
1,734
|
|
4,108
|
|
5,202
|
|
General and
administrative
|
752
|
|
770
|
|
2,587
|
|
2,447
|
|
Total operating expenses
|
2,216
|
|
2,504
|
|
6,695
|
|
7,649
|
|
Operating
loss
|
(2,216)
|
|
(2,504)
|
|
(6,676)
|
|
(7,615)
|
|
Interest income,
net
|
4
|
|
8
|
|
15
|
|
10
|
|
Other income
(expense), net
|
—
|
|
—
|
|
6
|
|
(2)
|
|
Net loss
|
(2,212)
|
|
(2,496)
|
|
(6,655)
|
|
(7,607)
|
|
Series A and Series
A-1 convertible
preferred stock dividends
|
—
|
|
—
|
|
—
|
|
(209)
|
|
Net loss applicable to
common stockholders
|
$
(2,212)
|
|
$
(2,496)
|
|
$
(6,655)
|
|
$
(7,816)
|
|
Net
loss per common share applicable to
common
stockholders:
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
$
(0.34)
|
|
$
(0.38)
|
|
$
(1.02)
|
|
$
(1.76)
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
6,576,096
|
|
6,494,912
|
|
6,548,696
|
|
4,445,192
|
|
|
|
|
|
|
|
|
|
|
|
|
RXi
PHARMACEUTICALS CORPORATION
|
|
|
|
|
CONDENSED BALANCE
SHEETS
|
|
|
|
|
(Amounts in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
2,379
|
|
$
5,117
|
|
Restricted
cash
|
50
|
|
50
|
|
Short-term
investments
|
2,000
|
|
5,500
|
|
Prepaid
expenses
|
321
|
|
311
|
|
Total current
assets
|
4,750
|
|
10,978
|
|
Property and
equipment, net
|
124
|
|
163
|
|
Other
assets
|
27
|
|
18
|
|
Total
assets
|
$
4,901
|
|
$
11,159
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
457
|
|
$
1,163
|
|
Accrued
expenses
|
1,408
|
|
1,106
|
|
Total current
liabilities
|
1,865
|
|
2,269
|
|
Total stockholders'
equity
|
3,036
|
|
8,890
|
|
Total liabilities and
stockholders' equity
|
$
4,901
|
|
$
11,159
|
|
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visit:http://www.prnewswire.com/news-releases/rxi-pharmaceuticals-reports-third-quarter-2016-financial-results-and-highlights-recent-corporate-developments-300360324.html
SOURCE RXi Pharmaceuticals Corporation