Chiasma Reports Fourth Quarter and Year End 2016 Results
March 16 2017 - 4:05PM
Chiasma, Inc. (NASDAQ:CHMA), a clinical-stage biopharmaceutical
company focused on improving the lives of patients with rare and
serious chronic diseases, today reported financial results for the
fourth quarter and year ended December 31, 2016.
“Chiasma remains committed to developing a new oral treatment
option for patients with acromegaly despite the challenging year
that we’ve had,” said Mark J. Fitzpatrick, president and chief
executive officer of Chiasma. “We are currently conducting an
international Phase 3 clinical trial – MPOWERED – of oral
octreotide capsules for the maintenance treatment of adult patients
with acromegaly to potentially support regulatory approval in
Europe. In addition, we continue to engage with the FDA to
determine potential development and regulatory paths forward for
octreotide capsules in the United States.”
Key Corporate Highlights
- Mycapssa NDA: As previously announced, Chiasma
received a Complete Response Letter (CRL) from the Food and Drug
Administration (FDA) on April 15, 2016 regarding our New Drug
Application (NDA) for Mycapssa. The FDA expressed concerns
regarding certain aspects of our single-arm, open-label Phase 3
clinical trial and strongly recommended that we conduct a
randomized, double-blind and controlled trial that enrolls patients
from the United States and is of sufficiently long duration to
ensure that control of disease activity is stable at the time point
selected for the primary efficacy assessment. In the second quarter
of 2016, we participated in an End of Review meeting with the
FDA. In the minutes of the meeting, the FDA reiterated its
concerns and also introduced the concept that some of its concerns
could potentially be addressed through a placebo-controlled study
design. Chiasma acknowledges this feedback and continues to work
with the FDA on potential pathways forward, including the
possibility of conducting a trial consistent with the FDA’s
recommendations, to potentially secure approval in the U.S. for
Mycapssa.In addition, the FDA advised in the CRL that, during a
site inspection, certain deficiencies were conveyed to the
representative of one of our suppliers that would need to be
resolved before approval. In December 2016, we were informed that
the supplier had recently received its Establishment Inspection
Report (EIR) from FDA. The receipt of the EIR is an
indication that FDA has concluded its inspection of the supplier
and as of the date of its report considers outstanding deficiencies
resolved.
- MPOWERED™ Phase 3
Trial: Chiasma continues to enroll patients in our Phase 3
trial of Mycapssa in adult acromegaly patients. In 2016,
enrollment in this trial met our internal expectations. The
FDA advised us that the MPOWERED clinical trial will not be
sufficient to address the concerns identified by the FDA in the
CRL. We therefore modified certain elements of the MPOWERED™
study in an effort to preserve patients, sites and other resources
necessary to potentially conduct an additional Phase 3 trial
addressing the FDA’s concerns and produce data packages that could
be suitable for submission in both the United States and
the European Union.
Chiasma intends to provide further clinical and regulatory
strategy updates if and when we are able to reach an understanding
with FDA on the development path forward for Mycapssa. The company
remains committed to the advancement of Mycapssa for acromegaly to
potentially improve patient care.
Fourth Quarter and Year End 2016 Financial
Results
- Marketing, G&A Expenses: Marketing,
general and administrative expenses were $2.5 million for the
quarter ended December 31, 2016, compared to $6.3 million for the
same period of 2015. The decrease was primarily due to the June and
August 2016 reductions in force of substantially all of our
commercial personnel and certain administrative functions as well
as the corresponding reduction in pre-commercial activity
expenditures following the CRL.
- R&D Expenses: Research and development
expenses were $4.8 million for the quarter ended December 31, 2016,
compared to $8.2 million for the same period of 2015. The
decrease was primarily due to purchases of active pharmaceutical
ingredient in 2015 which did not reoccur in the quarter ended
December 31, 2016 and reduced compensation-related costs following
the reduction of our research personnel in August 2016.
- Restructuring Charges: Restructuring charges
were $0.6 million for the quarter ended December 31, 2016 primarily
consisting of the impairment of leasehold improvements related to
our former Israel lease which we successfully terminated in
November 2016.
- Net Loss: For the quarter ended December 31,
2016, our net loss attributable to common stockholders was ($7.9)
million, or ($0.32) per basic share. This compares to a net
loss of ($14.5) million, or ($0.61) per basic share, for the same
period of 2015.
- Cash Position: Cash, cash equivalents and
marketable securities as of December 31, 2016 were $93.0 million,
compared to $99.4 million as of September 30, 2016, primarily
reflecting the company’s fourth-quarter operating expenditures and
restructuring-related payments. Cash, cash equivalents and
marketable securities as of December 31, 2015 were $148.8
million. The company expects our existing cash, cash
equivalents and marketable securities to fund our operations beyond
2018.
About Chiasma Chiasma is focused on improving
the lives of patients who face challenges associated with their
existing treatments for rare and serious chronic diseases.
Employing its Transient Permeability Enhancer (TPE®) technology
platform, Chiasma seeks to develop oral medications that are
currently available only as injections. The company is conducting
an international Phase 3 clinical trial of octreotide capsules
(conditionally trade-named “Mycapssa®”) for the maintenance
treatment of adult acromegaly patients to support a potential
submission of a Marketing Authorization Application to the European
Medicines Agency. Chiasma received a Complete Response Letter (CRL)
from the U.S. Food and Drug Administration (FDA) on April 15, 2016
regarding its New Drug Application (NDA) for Mycapssa in the United
States. Chiasma is headquartered in the United States with a wholly
owned subsidiary in Israel. Mycapssa and TPE are registered
trademarks of Chiasma.
Forward-Looking Statements This release
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including, but
not limited to, statements regarding the company’s commitment to
develop new treatment options for patients with rare and serious
chronic diseases, specifically acromegaly, the company’s efforts to
explore pathways to potentially enable regulatory approval of
octreotide capsules in the U.S., the company’s ongoing MPOWERED
Phase 3 clinical trial, the company’s ability to preserve patients,
sites and other resources necessary to enable it to potentially
conduct an additional Phase 3 trial addressing the FDA’s concerns
and produce data packages that could be suitable for submission in
both the United States and the European Union, and
the company’s expectation that its existing cash, cash equivalents
and marketable securities will be sufficient to fund its operations
beyond 2018. Any forward-looking statements in this press
release are based on management’s current expectations of future
events and are subject to a number of risks and uncertainties that
could cause actual results to differ materially and adversely from
those set forth in or implied by such forward-looking
statements. These risks and uncertainties include, but are
not limited to, risks associated with the regulatory review and
approval process generally; risks associated with Chiasma’s Phase 3
clinical trial to support regulatory approval of Mycapssa in the
E.U.; risks associated with Chiasma potentially conducting an
additional randomized, double-blind and controlled Phase 3 clinical
trial of Mycapssa in accordance with the FDA’s recommendation to
support regulatory approval of Mycapssa in the United States,
including risks related to the enrollment, timing and associated
expenses of any potential trial; risks associated with Chiasma
pursuing a development pathway other than the path strongly
recommended by the FDA; risks associated with the ability of
the company’s suppliers to pass future regulatory inspections;
risks associated with obtaining, maintaining and protecting
intellectual property; risks associated with Chiasma’s ability to
enforce its patents against infringers and defend its patent
portfolio against challenges from third parties; the risk that
octreotide capsules, if approved, will not be successfully
commercialized; the risk of competition from currently approved
therapies and from other companies developing products for similar
uses; risks associated with Chiasma’s ability to manage operating
expenses and/or obtain additional funding to support its business
activities; risks associated with Chiasma’s dependence on third
parties; and risks associated with defending any litigation,
including the risk that we incur more costs than we expect and
uncertainty involving the outcome. For a discussion of these
and other risks and uncertainties, and other important factors, any
of which could cause our actual results to differ from those
contained in the forward-looking statements, see the section
entitled “Risk Factors” in Chiasma’s Annual Report on Form 10-K for
the year ended December 31, 2016 filed with
the Securities and Exchange Commission (SEC)
on March 16, 2017, and in subsequent filings with
the Securities and Exchange Commission. All information
in this press release is as of the date of the release, and Chiasma
undertakes no duty to update this information unless required by
law.
|
Chiasma,
Inc. |
Condensed Consolidated Statements of
Operations |
(amounts in thousands except share and per
share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the twelve months ended |
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Operating
expenses: |
|
|
|
|
|
|
|
Marketing, general and administrative |
$ |
2,548 |
|
|
$ |
6,274 |
|
|
$ |
21,815 |
|
|
$ |
16,456 |
|
Research
and development |
|
4,791 |
|
|
|
8,246 |
|
|
|
31,317 |
|
|
|
18,991 |
|
Restructuring charges |
|
605 |
|
|
|
- |
|
|
|
8,179 |
|
|
|
- |
|
Total operating
expenses |
|
7,944 |
|
|
|
14,520 |
|
|
|
61,311 |
|
|
|
35,447 |
|
Loss from
operations |
|
(7,944 |
) |
|
|
(14,520 |
) |
|
|
(61,311 |
) |
|
|
(35,447 |
) |
Other
expense (income), net |
|
(158 |
) |
|
|
(3 |
) |
|
|
(547 |
) |
|
|
300 |
|
Loss before provision
for income taxes |
|
(7,786 |
) |
|
|
(14,517 |
) |
|
|
(60,764 |
) |
|
|
(35,747 |
) |
Provision for income
taxes |
|
109 |
|
|
|
15 |
|
|
|
347 |
|
|
|
161 |
|
Net loss |
|
(7,895 |
) |
|
|
(14,532 |
) |
|
|
(61,111 |
) |
|
|
(35,908 |
) |
Accretion of redeemable
convertible preferred stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(318 |
) |
Net loss attributable
to common stockholders |
$ |
(7,895 |
) |
|
$ |
(14,532 |
) |
|
$ |
(61,111 |
) |
|
$ |
(36,226 |
) |
|
|
|
|
|
|
|
|
Earnings per share
attributable to common stockholders |
|
|
|
|
|
|
|
Basic |
$ |
(0.32 |
) |
|
$ |
(0.61 |
) |
|
$ |
(2.51 |
) |
|
$ |
(3.25 |
) |
Diluted |
$ |
(0.32 |
) |
|
$ |
(0.61 |
) |
|
$ |
(2.51 |
) |
|
$ |
(3.25 |
) |
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
24,359,584 |
|
|
|
23,955,776 |
|
|
|
24,319,443 |
|
|
|
11,151,978 |
|
Diluted |
|
24,359,584 |
|
|
|
23,955,776 |
|
|
|
24,319,443 |
|
|
|
11,151,978 |
|
|
|
|
|
|
|
|
|
Chiasma,
Inc. |
Condensed Consolidated Balance Sheets
Information |
(amounts in
thousands) |
(unaudited) |
|
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
|
|
|
Cash and cash
equivalents |
$ |
37,013 |
|
$ |
41,039 |
Marketable
securities |
|
55,971 |
|
|
107,715 |
Prepaid expenses and
other current assets |
|
2,110 |
|
|
2,331 |
Property and equipment,
net |
|
683 |
|
|
676 |
Other assets |
|
979 |
|
|
1,347 |
Total assets |
$ |
96,756 |
|
$ |
153,108 |
|
|
|
|
Accounts payable |
$ |
1,166 |
|
$ |
157 |
Accrued expenses |
|
5,534 |
|
|
4,657 |
Other current
liabilities |
|
1,700 |
|
|
1,700 |
Long-term
liabilities |
|
2,631 |
|
|
3,778 |
Total liabilities |
|
11,031 |
|
|
10,292 |
Total stockholders'
equity |
|
85,725 |
|
|
142,816 |
Total liabilities and
stockholders' equity |
$ |
96,756 |
|
$ |
153,108 |
|
|
|
|
Contact:
Andrew Blazier
Sharon Merrill Associates
(617) 542-5300
chma@investorrelations.com
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