SAN DIEGO, Aug. 9, 2017 /PRNewswire/ -- Trovagene, Inc.
(NASDAQ: TROV), a precision medicine biotechnology company,
today announced company highlights and financial results for the
second quarter ended June 30,
2017. The company does not plan to have an earnings
conference call.
"We are pleased by the continued advancement of our clinical
development plans for PCM-075, our novel, investigational, orally
available and highly selective polo-like kinase 1 (PLK1) inhibitor,
including the FDA approval of our IND and Phase 1b/2 protocol to
commence our trial in patients with acute myeloid leukemia (AML),"
said Bill Welch, Chief Executive
Officer of Trovagene. "We are also pleased with our ongoing
collaborations we recently announced with our NextCollect™ urine
collections and DNA preservation device and liquid biopsy
tests. These partnerships support the value of our tumor
genomics and correlative biomarker technology."
Company Highlights
Updated Progress Towards the Clinical Development of
PCM-075
We acquired, in March 2017, the
exclusive global rights for the development and commercialization
of PCM-075, an oral and highly-selective polo-like kinase 1 (PLK1)
inhibitor, from Nerviano Medical Sciences, S.r.l.
- Announced Food and Drug Administration (FDA) approval of
Investigational New Drug (IND) for Phase 1b/2 trial of PCM-075 in
patients with AML. This trial is designed to determine the safety,
tolerability, dosing, scheduling, and preliminary efficacy of the
drug for patients with AML while providing a preliminary assessment
of response, and exploring the use of correlative biomarker
analysis to select patients most likely to respond.
- Announced peer-reviewed publication of first-in-human Phase 1
trial with PCM-075 in the journal, Investigational New Drugs. The
data from the trial demonstrated PCM-075's potential as safe and
effective treatment for solid tumor and hematological
malignancies.
- Engaged PRA Health Sciences, a leading, global contract
research organization (CRO) to conduct Trovagene's planned Phase
1b/2 clinical trial of PCM-075.
- Executed a supplier agreement with NerPharMa, S.r.l., a
pharmaceutical manufacturing company and a subsidiary of Nerviano
Medical Sciences S.r.l., in Milan,
Italy, to manufacture GMP-grade PCM-075 drug substance for
use in Trovagene's Phase 1b/2 clinical program and for other
related clinical and commercial activities.
- Announced expansion of key claims for the NPM1 patent portfolio
for AML by the U.S. Patent and Trademark Office (USPTO) and the
European Patent Office which encompass NPM1 mutation detection and
minimal residual disease (MRD) monitoring of patients with
AML.
Precision Medicine Programs
- Entered into an agreement with AstraZeneca to provide Trovera®
urine ctDNA biomarker test and services. Trovera® EGFR urine
liquid biopsy test will initially be used in an open label
prospective biomarker study evaluating whether the combined use of
noninvasive testing (urine and blood testing) is as effective as
tissue testing in identifying epidermal growth factor receptor
(EGFR) T790M mutation status.
- Entered into an agreement with a worldwide, premier
biopharmaceutical company to provide Trovera® urine circulating
tumor DNA (ctDNA) biomarker tests and services. The Trovera® urine
and blood liquid biopsy tests will be used to assess and monitor
mutation status in clinical trials of potential first-in-class or
best-in-class oncology therapeutics in development.
- Introduced NextCollect™, the first-of-its kind universal urine
collection and DNA preservation device for research use only (RUO).
NextCollect™ simplifies the urine collection process and optimizes
the preservation of DNA, with broad applications in oncology and
beyond. Completed production with initial shipments of NextCollect™
for RUO planned for September, 2017.
- Entered into an agreement with Novogene Co. Ltd., a leading
global provider of genomic services and solutions and the largest
sequencing capacity in the world, whereby Novogene will purchase
NextCollect™, reagents and methods to extract cell-free DNA (cfDNA)
for validation of urine DNA extraction methods in the Chinese
market.
General and Administrative
- On June 6, 2017, Trovagene paid
$16,668,583 in principal, interest,
and other fees under its Loan and Security Agreement with Silicon
Valley Bank and Oxford Finance LLC. Accordingly, the loan was
terminated. The Company recorded total interest expense of
$801,173 related to the Agreement
during the six months ended June 30,
2017.
- In July 2017, Trovagene completed
a registered direct offering of 6,191,500 shares of common stock
and a concurrent private placement issuing warrants to purchase up
to 4,643,626 shares of common stock. The net proceeds from the
registered direct offering and concurrent private placement were
approximately $6.5 million. The
shares of common stock outstanding as of July 31, 2017 was 37.3 million.
- On July 28, 2017, Trovagene
announced that the Company, and Antonius Schuh and Stephen Zaniboni, the company's former Chief
Executive Officer and former Chief Financial Officer, have resolved
their respective legal claims against each other. The settlement
involved mutual releases by all parties involved. The net cost to
Trovagene in connection with the settlement is approximately
$2.1 million, which has been accrued
in the condensed financial statements as of June 30, 2017. Of that amount, $975,000 was the net amount paid directly to the
former CEO and CFO.
Second Quarter 2017 Financial Results
- Trovagene reported a net loss of $8.1
million, or $0.26 per diluted
share in the second quarter of 2017, as compared to a net loss of
$10.2 million, or $0.34 per diluted share, for the same quarter of
2016. Excluding $1.7 million loss on
extinguishment of debt and $2.1
million expense legal litigation settlement, net loss for
the second quarter was $4.3
million.
- Total operating expenses were approximately $6.0 million for the three months ended
June 30, 2017, a reduction of
$4.1 million from $10.1 million for the same period in 2016.
Excluding $2.1 million expense legal
litigation settlement, net operating loss for the second quarter
was $3.9 million.
- Research and development expenses decreased by $3.1 million to $1.0
million for the three months ended June 30, 2017, from $4.1
million for the same period in 2016.
- Selling and Marketing expenses decreased by $2.5 million to $0.6
million for the three months ended June 30, 2017, from $3.1 for the same period in 2016.
- General and administrative expenses increased by $1.6 to $4.1 for
the three months ended June 30, 2017,
from $2.5 for the same period in
2016. The significant components of the increase were primarily due
to the increase in legal and accounting fees related to our
litigation settlement with the former CEO and CFO.
- Net cash used in operating activities in the second quarter of
2017 was $4.6 million, compared to
$8.1 million in the second quarter of
2016. The quarter-over-quarter reduction can be attributed
primarily to lower selling and marketing expenses as a result of
reduction in force and a decrease in research and development
expenses as a result of a shift in business focus.
- Net cash used in financing activities in the second quarter of
2017 was $16.7 million, compared to
$1.1 million in the second quarter of
2016. The increase is primarily due to the pay-off of Trovagene's
$15.0 million long-term debt.
- The weighted average diluted shares of common stock outstanding
used to calculate per share results was 31.0 million.
- As of June 30, 2017, Trovagene
had approximately $7.8 million of
cash and cash equivalents. As of July 31,
2017, Trovagene had $12.5
million of cash and cash equivalents and had not made any
payments in connection with litigation settlement.
About Trovagene, Inc.
Trovagene is a precision medicine biotechnology company
developing oncology therapeutics for improved cancer care by
leveraging its proprietary Precision Cancer Monitoring® (PCM)
technology in tumor genomics. Trovagene has broad
intellectual property and proprietary technology to measure
circulating tumor DNA (ctDNA) in urine and blood to identify and
quantify clinically actionable markers for predicting response to
cancer therapies. Trovagene offers its PCM technology at its
CLIA/CAP – accredited laboratory and plans to continue to
vertically integrate its PCM technology with precision cancer
therapeutics. For more information, please
visit https://www.trovagene.com/.
Forward-Looking Statements
Certain statements in this press release are forward-looking
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may be identified by the use of words
such as "anticipate," "believe," "forecast," "estimated" and
"intend" or other similar terms or expressions that concern
Trovagene's expectations, strategy, plans or intentions. These
forward-looking statements are based on Trovagene's current
expectations and actual results could differ materially.
There are a number of factors that could cause actual events
to differ materially from those indicated by such forward-looking
statements. These factors include, but are not limited to,
our need for additional financing; our ability to continue as a
going concern; clinical trials involve a lengthy and expensive
process with an uncertain outcome, and results of earlier studies
and trials may not be predictive of future trial results; our
clinical trials may be suspended or discontinued due to unexpected
side effects or other safety risks that could preclude approval of
our product candidates; uncertainties of government or third party
payer reimbursement; dependence on key personnel; limited
experience in marketing and sales; substantial competition;
uncertainties of patent protection and litigation; dependence upon
third parties; our ability to develop tests, kits and systems and
the success of those products; regulatory, financial and business
risks related to our international expansion and risks related to
failure to obtain FDA clearances or approvals and noncompliance
with FDA regulations. There are no guarantees that any of our
technology or products will be utilized or prove to be commercially
successful, or that Trovagene's strategy to design its liquid
biopsy tests to report on clinically actionable cancer genes will
ultimately be successful or result in better reimbursement
outcomes. Additionally, there are no guarantees that future
clinical trials will be completed or successful or that any
precision medicine therapeutics will receive regulatory approval
for any indication or prove to be commercially successful.
Investors should read the risk factors set forth in Trovagene's
Form 10-K for the year ended December 31, 2016, and other
periodic reports filed with the Securities and Exchange
Commission. While the list of factors presented here is
considered representative, no such list should be considered to be
a complete statement of all potential risks and uncertainties.
Unlisted factors may present significant additional obstacles
to the realization of forward-looking statements.
Forward-looking statements included herein are made as of the
date hereof, and Trovagene does not undertake any obligation to
update publicly such statements to reflect subsequent events or
circumstances.
Trovagene Contact:
Vicki Kelemen
VP, Corporate Communications
858-952-7652
vkelemen@trovagene.com
Trovagene,
Inc.
Condensed
Consolidated Statements of Operations
(in thousands,
except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
|
|
$
|
45
|
|
$
|
48
|
|
$
|
111
|
|
$
|
161
|
|
|
Diagnostic
services
|
|
|
55
|
|
|
24
|
|
|
84
|
|
31
|
|
|
Clinical research
services
|
|
|
2
|
|
|
32
|
|
|
2
|
|
32
|
|
|
Total
revenues
|
|
|
102
|
|
|
104
|
|
|
197
|
|
224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
338
|
|
410
|
|
954
|
|
719
|
|
|
Research and
development
|
|
982
|
|
4,076
|
|
5,262
|
|
7,284
|
|
|
Selling and
marketing
|
|
615
|
|
3,129
|
|
2,023
|
|
6,187
|
|
|
General and
administrative
|
|
4,059
|
|
2,469
|
|
6,256
|
|
6,473
|
|
|
Restructuring
charges
|
|
(4)
|
|
-
|
|
1,716
|
|
-
|
|
|
Total operating
expenses
|
|
5,990
|
|
10,084
|
|
16,211
|
|
20,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(5,888)
|
|
(9,980)
|
|
(16,014)
|
|
(20,439)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest expense
|
|
(432)
|
|
(275)
|
|
(861)
|
|
(613)
|
|
|
Gain
(loss) on change in fair value of derivative financial instruments-
warrants
|
|
(72)
|
|
53
|
|
484
|
|
587
|
|
|
Loss on
extinguishment of debt
|
|
(1,656)
|
|
-
|
|
(1,656)
|
|
-
|
|
|
Other
(income) loss, net
|
|
2
|
|
-
|
|
2
|
|
-
|
|
|
Net loss
|
|
$
|
(8,046)
|
|
$
|
(10,202)
|
|
$
|
(18,045)
|
|
$
|
(20,465)
|
|
|
Preferred stock
dividend
|
|
(6)
|
|
(6)
|
|
(12)
|
|
|
(12)
|
|
|
Net loss attributable
to common stockholders
|
|
$
|
(8,052)
|
|
$
|
(10,208)
|
|
$
|
(18,057)
|
|
$
|
(20,477)
|
|
|
Net loss per common
share - basic
|
|
$
|
(0.26)
|
|
$
|
(0.34)
|
|
$
|
(0.58)
|
|
$
|
(0.69)
|
|
Net loss per common
share - diluted
|
|
$
|
(0.26)
|
|
$
|
(0.34)
|
|
$
|
(0.58)
|
|
$
|
(0.70)
|
|
Weighted average
shares outstanding - basic
|
|
30,992
|
|
29,958
|
|
30,976
|
|
29,857
|
|
|
|
Weighted average
shares outstanding - diluted
|
|
30,992
|
|
29,958
|
|
30,976
|
|
30,033
|
|
|
|
Trovagene,
Inc.
Condensed
Consolidated Balance Sheets
(in
thousands)
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and short-term investments
|
|
$
|
7,784
|
|
$
|
37,893
|
|
|
Accounts
receivable
|
|
157
|
|
100
|
|
|
Prepaid expense and
other assets
|
|
714
|
|
957
|
|
|
Total current
assets
|
|
8,655
|
|
38,950
|
|
|
Property and
equipment, net
|
|
|
3,322
|
|
|
3,827
|
|
|
Other
assets
|
|
|
584
|
|
|
1,173
|
|
|
Total
Assets
|
|
$
|
12,561
|
|
$
|
43,950
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
603
|
|
$
|
1,131
|
|
|
Accrued
expenses
|
|
|
4,930
|
|
|
4,021
|
|
|
Deferred
rent
|
|
|
285
|
|
|
285
|
|
|
Current portion of
long-term debt
|
|
|
1,644
|
|
|
2,360
|
|
|
Total current
liabilities
|
|
7,462
|
|
7,797
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
-
|
|
14,176
|
|
|
Derivative financial
instruments - warrants
|
|
351
|
|
835
|
|
|
Deferred rent, net of
current portion
|
|
1,237
|
|
1,374
|
|
|
Total
Liabilities
|
|
9,050
|
|
24,182
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
3,511
|
|
|
19,768
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
12,561
|
|
$
|
43,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trovagene,
Inc.
Condensed
Consolidated Statements of Cash Flows
(in
thousands)
|
|
|
Six Months
Ended
|
|
June
30,
|
|
2017
|
|
2016
|
|
|
|
|
Operating
activities
|
|
|
|
Net loss
|
$ (18,045)
|
|
$ (20,465)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and amortization
|
646
|
|
490
|
Stock based compensation expense
|
1,696
|
|
4,113
|
Change in fair value of derivative financial instruments -
warrants
|
(484)
|
|
(587)
|
Loss on extinguishment of debt
|
1,656
|
|
-
|
Other non-cash items
|
709
|
|
119
|
Changes in operating
assets and liabilities
|
467
|
|
1,336
|
Net cash used in
operating activities
|
(13,355)
|
|
(14,994)
|
|
|
|
|
Investing
activities:
|
|
|
|
Capital expenditures,
net
|
(21)
|
|
(671)
|
Net sales and
maturities (purchase) of short-term investments
|
24,062
|
|
(27,951)
|
Net cash provided by
(used in) investing activities
|
24,041
|
|
(28,622)
|
|
|
|
|
Financing
activities:
|
|
|
|
Proceeds from sales
of common stock, net of expenses
|
107
|
|
-
|
Proceeds from
exercise of options
|
-
|
|
232
|
Net repayment of
debt
|
(16,926)
|
|
(1,528)
|
Net cash used in
financing activities
|
(16,819)
|
|
(1,296)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(2)
|
|
(2)
|
Net change in cash
and equivalents
|
(6,131)
|
|
(44,914)
|
Cash and cash
equivalents—Beginning of period
|
13,915
|
|
67,493
|
Cash and cash
equivalents—End of period
|
$
7,784
|
|
$
22,579
|
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SOURCE Trovagene, Inc.