Conatus Pharmaceuticals Inc. (Nasdaq:CNAT), a biotechnology company
focused on the development and commercialization of novel medicines
to treat liver disease, today announced financial results for the
quarter and six months ended June 30, 2017, and provided updates on
its clinical development programs.
Financial ResultsThe net loss for the second
quarter of 2017 was $5.4 million compared with $6.5 million for the
second quarter of 2016. The net loss for the first six months of
2017 was $9.0 million compared with $13.7 million for the first six
months of 2016.
Total revenues were $10.0 million for the second quarter of 2017
and $17.0 million for the first six months of 2017, compared with
$0.0 million for the comparable periods in 2016. Total revenues for
both periods in 2017 consisted of collaboration revenue related to
the company’s Option, Collaboration and License Agreement with
Novartis, which was executed in December 2016.
Research and development expenses were $13.2 million for the
second quarter of 2017 compared with $4.2 million for the second
quarter of 2016. Research and development expenses were $21.1
million for the first six months of 2017 compared with $8.9 million
for the first six months of 2016. The increases in research and
development expenses for both periods were primarily due to the
ramp up of the ENCORE-NF and ENCORE-PH clinical trials, as well as
the commencement of the ENCORE-LF clinical trial.
General and administrative expenses were $2.2 million for the
second quarter of 2017 compared with $2.2 million for the second
quarter of 2016. General and administrative expenses were $5.0
million for the first six months of 2017 compared with $4.8 million
for the first six months of 2016.
Conatus completed an underwritten public offering of 5,980,000
shares of its common stock in May 2017 at a price of $5.50 per
share, generating net proceeds of approximately $30.7 million, of
which approximately $11.2 million was used to repurchase and retire
2,166,836 shares of Conatus’ common stock held by funds affiliated
with Advent Private Equity.
Cash, cash equivalents and marketable securities were $88.2
million at June 30, 2017, compared with $77.0 million at December
31, 2016, and a projected year-end 2017 balance of between $55
million and $65 million. The company believes its financial
resources, including a $7.0 million license option exercise payment
received in July 2017 and anticipated expense reimbursements
related to the Novartis agreement, are sufficient to maintain
operations and ongoing emricasan clinical development activities
through the end of 2019, as well as to fund anticipated pipeline
expansion activities.
Program Updates With the receipt of the license
option exercise payment in July 2017, Conatus’ exclusive license
with Novartis for the global development and commercialization of
emricasan became effective under terms of the Option, Collaboration
and License Agreement. In collaboration with Novartis, Conatus is
conducting four randomized, double-blind, placebo-controlled Phase
2b clinical trials designed to evaluate emricasan treatment in
various patient populations, including three EmricasaN, a Caspase
inhibitOR, for Evaluation (ENCORE) clinical trials in patients with
fibrosis or cirrhosis caused by nonalcoholic steatohepatitis
(NASH), and a fourth clinical trial in POLT-HCV-SVR patients:
- ENCORE-NF (for NASH Fibrosis), initiated in the first quarter
of 2016, in approximately 330 patients with NASH fibrosis, with
top-line results expected in the first half of 2019;
- ENCORE-PH (for Portal Hypertension), initiated in the fourth
quarter of 2016, in approximately 240 patients with compensated or
early decompensated NASH cirrhosis and severe portal hypertension,
with top-line results expected in 2018 followed by an integrated
treatment extension period for clinical outcomes;
- ENCORE-LF (for Liver Function), initiated in the second quarter
of 2017, in approximately 210 patients with decompensated NASH
cirrhosis, with top-line results expected in 2019; and
- POLT-HCV-SVR, initiated in the second quarter of 2014, in
approximately 60 post-orthotopic liver transplant (POLT) recipients
with liver fibrosis or cirrhosis post-transplant as a result of
recurrent HCV infection who have successfully achieved a sustained
viral response (SVR) following HCV antiviral therapy, with top-line
results expected in the first half of 2018.
Results from the four ongoing emricasan clinical trials are
expected to support the design of Phase 3 clinical efficacy and
safety trials.
In June 2017, the U.S. Food and Drug Administration (FDA)
granted Orphan Drug Designation to Conatus’ drug candidate IDN-7314
for the treatment of primary sclerosing cholangitis (PSC). Conatus
will continue to evaluate IDN-7314 as a potential product
candidate, along with other potential product candidates, and
intends to announce initial pipeline expansion plans later in
2017.
Conference Call and Audio Webcast Conatus will
host a conference call and audio webcast at 4:30 p.m. Eastern Time
today to discuss the financial results and provide a corporate
update. To access the conference call, please dial 877-312-5857
(domestic) or 970-315-0455 (international) at least five minutes
prior to the start time and refer to conference ID 54274394. A live
and archived audio webcast of the call will also be available in
the Investors section of the Conatus website at
www.conatuspharma.com.
About Conatus PharmaceuticalsConatus is a
biotechnology company focused on the development and
commercialization of novel medicines to treat liver disease. In
collaboration with Novartis, Conatus is developing its lead
compound, emricasan, for the treatment of patients with chronic
liver disease. Emricasan is a first-in-class, orally active
pan-caspase inhibitor designed to reduce the activity of enzymes
that mediate inflammation and apoptosis. Conatus believes that by
reducing the activity of these enzymes, caspase inhibitors have the
potential to interrupt the progression of a variety of diseases.
For additional information, please visit www.conatuspharma.com.
Forward-Looking Statements This press release
contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical facts contained in
this press release are forward looking statements, including
statements regarding: the projected year-end cash balance;
the sufficiency of current financial resources to maintain
operations and ongoing clinical development activities through
2019, as well as to fund anticipated pipeline expansion activities;
the timelines to announce results from the ENCORE-NF, the
ENCORE-PH, the ENCORE-LF, and the POLT-HCV-SVR clinical trials;
evaluation of IDN-7314 and other potential product candidates; the
timeline to announce initial pipeline expansion plans; and caspase
inhibitors' potential to interrupt the progression of a variety of
diseases. In some cases, you can identify forward-looking
statements by terms such as “may,” “will,” “should,” “expect,”
“plan,” “anticipate,” “could,” “intend,” “target,” “project,”
“contemplates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or the negative of these terms or other similar
expressions. These forward-looking statements speak only as of
the date of this press release and are subject to a number of
risks, uncertainties and assumptions, including: Conatus’
ability to successfully enroll patients in and complete its ongoing
and planned clinical trials; Novartis continuing development and
commercialization of emricasan; Conatus’ reliance on third parties
to conduct its clinical trials, including the enrollment of
patients, and manufacture its clinical drug supplies of emricasan;
potential adverse side effects or other safety risks associated
with emricasan that could delay or preclude its approval; results
of future clinical trials of emricasan; Conatus’ ability to obtain
additional financing in order to co-commercialize emricasan or
develop other compounds; and those risks described in Conatus’
prior press releases and in the periodic reports it files with the
Securities and Exchange Commission. The events and
circumstances reflected in Conatus’ forward-looking statements may
not be achieved or occur and actual results could differ materially
from those projected in the forward-looking statements. Except as
required by applicable law, Conatus does not plan to publicly
update or revise any forward-looking statements contained herein,
whether as a result of any new information, future events, changed
circumstances or otherwise.
Conatus Pharmaceuticals Inc. |
|
Selected Condensed Financial
Information |
|
(Unaudited) |
|
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|
|
|
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|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
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Statements of
Operations |
|
June 30, |
|
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Collaboration revenue |
|
$ |
10,008,431 |
|
|
$ |
- |
|
|
|
$ |
17,006,507 |
|
|
$ |
- |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
13,217,925 |
|
|
|
4,246,488 |
|
|
|
|
21,143,636 |
|
|
|
8,944,950 |
|
|
General
and administrative |
|
|
2,194,184 |
|
|
|
2,238,134 |
|
|
|
|
4,957,209 |
|
|
|
4,814,261 |
|
|
Total operating
expenses |
|
|
15,412,109 |
|
|
|
6,484,622 |
|
|
|
|
26,100,845 |
|
|
|
13,759,211 |
|
|
Loss from
operations |
|
|
(5,403,678 |
) |
|
|
(6,484,622 |
) |
|
|
|
(9,094,338 |
) |
|
|
(13,759,211 |
) |
|
Other
income/expense |
|
|
(13,209 |
) |
|
|
13,477 |
|
|
|
|
54,706 |
|
|
|
16,182 |
|
|
Net loss |
|
$ |
(5,416,887 |
) |
|
$ |
(6,471,145 |
) |
|
|
$ |
(9,039,632 |
) |
|
$ |
(13,743,029 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted |
|
$ |
(0.19 |
) |
|
$ |
(0.30 |
) |
|
|
$ |
(0.33 |
) |
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding used in computing net loss per share, basic and
diluted |
|
|
28,103,393 |
|
|
|
21,542,188 |
|
|
|
|
27,138,536 |
|
|
|
21,085,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
Balance Sheets |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
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|
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|
|
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Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities |
|
|
|
|
|
$ |
88,198,337 |
|
|
$ |
77,015,124 |
|
|
Other receivables |
|
|
|
|
|
|
7,000,000 |
|
|
|
2,500,000 |
|
|
Prepaid and other current assets |
|
|
|
|
|
|
1,017,603 |
|
|
|
937,436 |
|
|
Total current assets |
|
|
|
|
|
|
96,215,940 |
|
|
|
80,452,560 |
|
|
Property and equipment, net |
|
|
|
|
|
|
228,405 |
|
|
|
261,446 |
|
|
Other assets |
|
|
|
|
|
|
2,538,211 |
|
|
|
1,609,834 |
|
|
Total assets |
|
|
|
|
|
$ |
98,982,556 |
|
|
$ |
82,323,840 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts payable and other accrued expenses |
|
|
|
|
|
$ |
10,077,313 |
|
|
$ |
7,662,796 |
|
|
Current
portion of deferred revenue |
|
|
|
|
|
|
|
24,630,685 |
|
|
|
30,897,192 |
|
|
Note payable |
|
|
|
|
|
|
- |
|
|
|
1,000,000 |
|
|
Total
current liabilities |
|
|
|
|
|
|
|
34,707,998 |
|
|
|
39,559,988 |
|
|
Deferred
revenue, less current portion |
|
|
|
|
|
|
|
17,063,762 |
|
|
|
20,803,762 |
|
|
Convertible note payable |
|
|
|
|
|
|
12,779,452 |
|
|
|
- |
|
|
Deferred
rent |
|
|
|
|
|
|
|
151,358 |
|
|
|
171,544 |
|
|
Stockholders' equity |
|
|
|
|
|
|
34,279,986 |
|
|
|
21,788,546 |
|
|
Total liabilities and stockholders' equity |
|
|
|
|
|
$ |
98,982,556 |
|
|
$ |
82,323,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: Alan Engbring
Conatus Pharmaceuticals Inc.
(858) 376-2637
aengbring@conatuspharma.com
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