Strongbridge Biopharma plc, (Nasdaq:SBBP), a global
commercial-stage biopharmaceutical company focused on the
development and commercialization of therapies for rare diseases
with significant unmet needs, today provided a corporate update and
reported full-year 2016 financial results.
“We believe that Strongbridge is well positioned
for success in 2017. With the planned launch of KEVEYIS® in April,
our interactions with patients, advocacy organizations and
healthcare providers continue to reinforce our view that
significant unmet needs remain in the diagnosis and treatment of
primary periodic paralysis, and Strongbridge is passionate and
enthusiastic about making KEVEYIS available to the community.
Strongbridge is committed to ensuring that primary periodic
paralysis patients have access to KEVEYIS and will also be making
investments in disease education and awareness initiatives and
patient support services,” said Matthew Pauls, president and chief
executive officer of Strongbridge Biopharma. “In addition, we are
successfully progressing the development of COR-003. The Phase 3
SONICS study is now more than 80 percent enrolled and we remain on
track to fully enroll the study during the second quarter. We are
also on schedule to commence enrollment in LOGICS, our supportive
Phase 3 study for COR-003, in the middle of this year,” Pauls
added.
Recent Corporate
Highlights
- Preparing for the launch of
KEVEYIS® (dichlorphenamide) in April 2017.
In December 2016, Strongbridge acquired the U.S. rights to KEVEYIS
for the treatment of hyperkalemic, hypokalemic, and related
variants of primary periodic paralysis (PPP), which is a group of
rare hereditary disorders that causes potentially severe episodes
of muscle weakness and/or paralysis. In January, the Company
announced the hiring of Dave Bonnell and Scott Wilhoit to focus on
building out sales, marketing, market access and patient support
service capabilities. Since then, the Company has continued to
expand its commercial infrastructure with the hiring of 12
highly-experienced, rare disease field force personnel along with
two individuals focusing on patient services and market access. The
Company is also actively engaged with the PPP community, including
patients, advocacy organizations and healthcare practitioners to
develop disease education and awareness initiatives aimed at
increasing awareness and diagnosis of PPP.
- COR-003 Phase 3 clinical development program remains on
track, and the U.S. Food and Drug Administration conditionally
accepted the proprietary name RECORLEV™
for the brand. The Phase 3 SONICS study evaluating
RECORLEV (levoketoconazole, and formerly known as COR-003) for the
treatment of endogenous Cushing’s syndrome is on track to be fully
enrolled in the second quarter of 2017, with top-line data for the
primary efficacy analysis available in the first quarter of 2018.
Patient enrollment in the Phase 3 LOGICS study, which will
supplement the long-term efficacy and safety data from SONICS, is
anticipated to begin in mid-2017 and top-line data are expected in
the third quarter of 2018.
- Veldoreotide (formerly known as COR-005) formulation
and process optimization activities are ongoing.
Strongbridge is continuing to optimize a long-acting release
formulation based on PLGA microspheres and has initiated scale-up
and technology transfer to the selected cGMP contract manufacturing
site that will be used for clinical supplies. PLGA is a well-known
polymer that has been widely applied in long-acting formulations
due to its biocompatibility, biodegradability, and favorable
release kinetics.
- Strengthened financial position. In December
2016, Strongbridge secured $35 million in equity financing and
a $40 million credit facility, of which $20 million has been
initially borrowed. The Company had $66.8 million of cash and cash
equivalents as of December 31, 2016. The Company believes it
has sufficient financial resources, excluding any additional
borrowings under the credit facility, to fund planned operations
into 2019.
Year-to-Date December 2016
Results
For the twelve months ended December 31, 2016,
basic and diluted net loss attributable to ordinary shareholders
was $48.6 million and $49.2 million, respectively, and basic and
diluted net loss per share attributable to ordinary shareholders
was $2.26 per basic share and $2.27 per diluted share,
respectively, compared to a basic and diluted net loss attributable
to ordinary shareholders of $43.6 million, or $2.62 per basic and
diluted share, for the twelve months ended December 31, 2015.
Research and development expenses were $20.0
million for the twelve months ended December 31, 2016, compared to
$20.1 million for the same period in the prior year. Research and
development expenses for the twelve months ended December 31, 2015
included a non-recurring charge of $3.9 million upon entering into
a license agreement in May 2015. Research and development
expense for 2016 includes increased development expenses related to
the ongoing clinical trials for RECORLEV and the initiation of
the development activity for veldoreotide, and higher cash
compensation due to increased headcount of research and development
personnel during the 2016 period, partially offset by reduced
development spend due to discontinued programs for COR-004 and
BioPancreate.
General and administrative expenses were $14.9
million for the twelve months ended December 31, 2016, compared to
$22.7 million for the same period in the prior year. General
and administrative expenses for the twelve months ended December
31, 2015 included $4.0 million of legal and accounting fees related
to the indirect activities necessary to prepare the Company’s
financial records for the U.S. initial public offering, which was
completed in October 2015. General and administrative
expenses for the twelve months ended December 31, 2015 also
included $3.4 million of transaction fees and expenses related to
the acquisition of veldoreotide from Aspireo Pharmaceuticals, the
license of COR-004 from Antisense Therapeutics, and other business
development activities. The remaining net decrease in 2016
was primarily due to decreased legal fees in support of general
corporate matters, employee recruiting fees, and consulting fees
for general business efforts, partially offset by increased cash
compensation and non-cash stock-based compensation due to increased
headcount of administrative personnel during the 2016 period.
During the twelve months ended December 31,
2016, the Company recorded $15.8 million of non-cash intangible
asset impairment charges consisting of $5.2 million relating to the
previously disclosed termination of the BioPancreate license
agreement and $10.6 million following the annual revaluation of
in-process research and development related to the veldoreotide
program. The annual revaluation incorporated updated assumptions
regarding the future timing and costs of veldoreotide
development. The Company is continuing to sequence
veldoreotide development activities to ensure existing financial
resources are sufficient to fund planned operations into 2019.
Strongbridge had cash and cash equivalents of
$66.8 million and $20.0 million in outstanding debt as of December
31, 2016, compared to cash and cash equivalents of $51.6 million as
of December 31, 2015.
STRONGBRIDGE BIOPHARMA plc |
Select Consolidated Balance Sheet
Information |
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
( in thousands) |
|
Consolidated
Balance Sheet Data: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
66,837 |
|
$ |
51,623 |
|
Total
assets |
|
|
137,531 |
|
|
97,330 |
|
Total
liabilities |
|
|
70,559 |
|
|
6,403 |
|
Total
shareholders’ equity |
|
|
66,972 |
|
|
90,927 |
|
|
|
|
|
|
|
|
|
STRONGBRIDGE BIOPHARMA plc |
Consolidated Statement of Operations and
Comprehensive Loss |
(In thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations Data: |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
|
$ |
20,023 |
|
|
$ |
20,135 |
|
|
General
and administrative |
|
|
|
14,875 |
|
|
|
22,719 |
|
|
Intangible asset impairment charges |
|
|
|
15,828 |
|
|
|
— |
|
|
Total
operating expenses |
|
|
|
50,726 |
|
|
|
42,854 |
|
|
Operating loss |
|
|
|
(50,726 |
) |
|
|
(42,854 |
) |
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
Foreign
exchange loss |
|
|
|
(69 |
) |
|
|
(124 |
) |
|
Unrealized gain on fair value of warrants |
|
|
|
638 |
|
|
|
|
|
Interest
Expense |
|
|
|
(20 |
) |
|
|
|
|
Other
income (expense), net |
|
|
|
(1,180 |
) |
|
|
(1,105 |
) |
|
Total
other income (expense), net |
|
|
|
(631 |
) |
|
|
(1,229 |
) |
|
Loss before income
taxes |
|
|
|
(51,357 |
) |
|
|
(44,083 |
) |
|
Income tax benefit |
|
|
|
2,638 |
|
|
|
450 |
|
|
Net loss |
|
|
|
(48,719 |
) |
|
|
(43,633 |
) |
|
Net loss attributable
to non-controlling interest |
|
|
|
122 |
|
|
|
53 |
|
|
Net loss attributable
to Strongbridge Biopharma |
|
|
$ |
(48,597 |
) |
|
$ |
(43,580 |
) |
|
Net loss attributable
to ordinary shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
(48,597 |
) |
|
$ |
(43,580 |
) |
|
Diluted |
|
|
$ |
(49,236 |
) |
|
$ |
(43,580 |
) |
|
Net loss per share
attributable to ordinary shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
(2.26 |
) |
|
$ |
(2.62 |
) |
|
Diluted |
|
|
$ |
(2.27 |
) |
|
$ |
(2.62 |
) |
|
Weighted-average shares
used in computing net loss per share attributable to ordinary
shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
21,550,353 |
|
|
|
16,606,669 |
|
|
Diluted |
|
|
|
21,655,564 |
|
|
|
16,606,669 |
|
|
|
|
|
|
|
|
|
|
|
About Strongbridge
BiopharmaStrongbridge Biopharma is a global
commercial-stage biopharmaceutical company focused on the
development and commercialization of therapies for rare diseases
with significant unmet needs. Strongbridge's first commercial
product is KEVEYIS® (dichlorphenamide), the first and only
FDA-approved treatment for hyperkalemic, hypokalemic, and related
variants of Primary Periodic Paralysis. KEVEYIS has orphan drug
exclusivity status in the U.S. through August 7, 2022. In addition
to establishing this neuromuscular disease franchise, the Company
has a clinical-stage pipeline of therapies for rare endocrine
diseases. Strongbridge's lead compounds include
RECORLEV™ (levoketoconazole, and formerly known as
COR-003), a cortisol synthesis inhibitor currently being studied
for the treatment of endogenous Cushing's syndrome, and
veldoreotide (formerly known as COR-005), a next-generation
somatostatin analog (SSA) being investigated for the treatment of
acromegaly, with potential additional applications in Cushing's
syndrome and neuroendocrine tumors. Both RECORLEV and veldoreotide
have received orphan designation from the U.S. Food and Drug
Administration and the European Medicines Agency. For more
information, visit www.strongbridgebio.com.
About KEVEYIS
KEVEYIS® Indication
KEVEYIS® (dichlorphenamide) is indicated for the treatment of
primary hyperkalemic periodic paralysis, primary hypokalemic
periodic paralysis, and related variants.
KEVEYIS Important Safety
Information In clinical studies, the most common side
effects of KEVEYIS were a numbness or tingling, difficulty thinking
and paying attention, changes in taste, and confusion. These are
not all of the possible side effects that you may experience with
KEVEYIS. Talk to your doctor if you have any symptoms that bother
you or do not go away.
KEVEYIS is not for everyone. Do not take KEVEYIS if you:
- Are on a high-dose aspirin regimen
- Are allergic to sulfa-based drugs
- Have liver, kidney, or certain lung conditions
- Are pregnant, planning to become pregnant, or nursing
- Are under 18 years old
Taking KEVEYIS may cause a drop in the amount of
potassium (an electrolyte) in your body, which can lead to heart
problems. Ask your doctor if you need to eat foods that contain
high amounts of potassium while taking KEVEYIS.
Your body may produce too much acid or may not
be able to remove enough acid from body fluids while taking
KEVEYIS. Your doctor will run tests on a regular basis to check for
signs of acid buildup and may reduce your dose or stop your
treatment with KEVEYIS.
KEVEYIS may also increase the risk of falls,
especially in elderly patients and patients taking high doses of
KEVEYIS. Use caution when driving, operating machinery, or
performing any other hazardous activities while taking KEVEYIS, as
this medication may cause drowsiness.
You are encouraged to report side effects to
Strongbridge Biopharma at 1-855-324-8912, or to the FDA at
1-800-FDA-1088 or
visit www.fda.gov/medwatch/. For more
information, go to www.keveyis.com.
For additional KEVEYIS important safety
information, please see full prescribing information at
www.keveyis.com.
STRONGBRIDGE BIOPHARMA™ is a trademark of
Strongbridge Biopharma plc.
KEVEYIS® is a registered trademark licensed
exclusively in the U.S. to Strongbridge Biopharma plc.
Forward-Looking StatementsThis
press release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other
than statements of historical facts, contained in this press
release, are forward-looking statements. These statements relate to
future events and involve known and unknown risks, including,
without limitation, uncertainties regarding Strongbridge's
strategy, plans, future financial position, anticipated
investments, costs and results, outcomes of product development
efforts, status and results of clinical trials and objectives of
management for future operations. The words "anticipate,"
"estimate," "expect," "intend," "may," "plan," "potential,"
"project," "target," "will," "would," or the negative of these
terms or other similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. These forward-looking
statements are based on current expectations, estimates, forecasts
and projections and are not guarantees of future performance or
development and involve known and unknown risks, uncertainties and
other factors. The forward-looking statements contained in this
press release are made as of the date of this press release,
and Strongbridge Biopharma does not assume any obligation
to update any forward-looking statements except as required by
applicable law.
Contacts:
Corporate and Media Relations
Elixir Health Public Relations
Lindsay Rocco
+1 862-596-1304
lrocco@elixirhealthpr.com
Investor Relations
U.S.:
The Trout Group
Marcy Nanus
+1 646-378-2927
mnanus@troutgroup.com
Europe:
First House
Mitra Hagen Negård
+47 21 04 62 19
strongbridgebio@firsthouse.no
USA
900 Northbrook Drive
Suite 200
Trevose, PA 19053
Tel. +1 610-254-9200
Fax. +1 215-355-7389
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