MARLBOROUGH, Mass.,
Aug. 10, 2017 /PRNewswire/
-- RXi Pharmaceuticals Corporation (NASDAQ: RXII), a
clinical-stage RNAi company developing innovative therapeutics that
address significant unmet medical needs, today reported its
financial results for the second quarter ended June 30, 2017, and provided a business
update.
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"During the first half of 2017, the Company focused on the main
elements that can drive progress and value for RXi," said Dr.
Geert Cauwenbergh, President, and
CEO of RXi Pharmaceuticals. "These key elements include:
First, we are pleased that NASDAQ has granted the Company a
six-month extension to regain listing compliance with the
$1.00 bid price requirement.
Second, all of our ongoing human clinical programs are on
schedule. Therefore, the Company remains on track with its 2017
corporate goals to report top-line data on most studies before the
end of this year.
Third, several in vitro studies and animal studies using
sd-rxRNA® checkpoint inhibitors for immuno-oncology and cell
therapy are ongoing and expected to produce reportable results in
the second half of this year.
Finally, RXi maintained a conservative spend rate in line with
its projected budget. Careful allocation of funds is focused on
programs that we believe will maximize value creation. To
continue the development of new drugs that are filling major gaps
in the treatment of life threatening and debilitating diseases, we
have put an equity line in place with Lincoln Park Capital Fund,
LLC, a leading biotech investment fund. This funding
mechanism extends our financial runway beyond Q2 2018.
Importantly, the Company is in complete control of if, and when, it
may choose to access the equity line."
The Company will host a conference call today at 4:30 p.m. EDT to discuss financial results and
provide an update on the Company. The webcast link is available
under the "Investors – Events and Presentations" section of the
Company's website, www.rxipharma.com. The event may also be
accessed by dialing toll-free in the
United States +1 844-376-4678. International participants
may access the event by dialing: +1 209-905-5983. An archive of the
webcast will be available on the Company's website approximately
two hours after the presentation.
Select Second Quarter 2017 Financial Highlights
Cash Position
At June 30, 2017, the Company had
cash of $7.7 million, compared with
$12.9 million at December 31, 2016.
On August 8, 2017, the Company
entered into a purchase agreement with Lincoln Park Capital Fund,
LLC ("LPC"), pursuant to which the Company has the right to sell to
LPC up to $15 million in shares of
the Company's common stock over the 30-month term of the agreement.
We expect to use proceeds from the purchase agreement for general
corporate purposes, including but not limited to the advancement of
our immunotherapy program, our clinical trials, and general and
administrative expenses.
The Company believes that its existing cash and the potential
proceeds available under our equity facility with LPC should be
sufficient to fund the Company's operations for at least the next
twelve months.
Research and Development Expenses
Research and development expenses for the quarter ended
June 30, 2017 were $1.3 million, as compared with $1.3 million for the quarter ended June 30, 2016. While overall research and
development expenses were consistent quarter over quarter, there
were increases in research and development expenses due to a
ramp-up in enrollment related to the second cohort in the Company's
Phase 2 clinical trial for Samcyprone™, which was offset by a
decrease in stock-based compensation expense.
Acquired In-process Research and Development
Expense
The Company had acquired in-process research and development
expense of $0.9 million for the
quarter ended June 30, 2017. There
was no such expense for the three months ended June 30, 2016. In January
2017, the Company acquired all of the issued and outstanding
capital stock of MirImmune Inc., a privately-held biotechnology
company that was engaged in the development of cancer
immunotherapies. In exchange, the Company issued shares of common
stock and Series C convertible preferred stock, which were subject
to a 3% holdback for any purchase price adjustments. The acquired
in-process research and development expense recorded during the
three months ended June 30, 2017
related to the value of the securities subject to the holdback that
was released on April 12, 2017.
General and Administrative Expenses
General and administrative expenses for the quarter ended
June 30, 2017 were $1.1 million, as compared with $0.9 million for the quarter ended June 30, 2016. The increase in general and
administrative expenses was due to increases in employee headcount
in connection with the acquisition of MirImmune and legal and
accounting fees. These increases were offset by a decrease in
stock-based compensation expense.
Net Loss
Net loss for the three months ended June
30, 2017 was $2.5 million,
compared with $2.2 million for the
three months ended June 30, 2016. The
increase in net loss was primarily driven by the changes in
acquired in-process research and development expense and general
and administrative expenses, as discussed above.
Nasdaq Compliance
On August 2, 2017, the NASDAQ
Stock Market provided written notice and granted the Company an
additional 180 calendar days to regain compliance with the minimum
bid price requirements set forth in the NASDAQ listing rules. As a
result of this extension, the Company has until January 29, 2018 to regain compliance by
maintaining a closing bid price of at least $1.00 for 10 consecutive business days. The
NASDAQ written notice has no effect on the listing of the Company's
common stock at this time.
Select Second Quarter 2017 and Recent Corporate
Highlights
Select Business and Corporate Highlights
Board of Directors
The Company announced the appointment of Dr. Jonathan Freeman as an independent director to
the Company's Board of Directors. Dr. Freeman is a member of
the Company's Audit and Nominating & Governance Committees.
Dr. Jonathan Freeman currently
serves as the Chief Business Officer at Vedanta Biosciences, a
privately-held company developing a class of drugs that work by
modulating the human microbiome, with an initial emphasis on
autoimmune and inflammatory diseases. Previously, Dr. Freeman was
Senior Vice President, Head of Strategy Development and Portfolio
Management at Merck KGaA. Before that role, he was the Head
of Global Business Development and Licensing at Merck executing
more than 30 transactions and structured financings. Prior to
his roles at Merck, Jonathan served in senior positions at Baxter
and Serono, in M&A and, Corporate and Business Development,
respectively. Jonathan holds a First Class Honours in
Biochemistry and an MA from Cambridge
University, UK, a Ph.D. in cancer research from the Imperial
Cancer Research Fund (now CRUK), and an MBA with a finance major
from Webster University, St.
Louis. He held various post-doctoral positions at the Swiss
Institute for Cancer Research (ISREC), and the Geneva Medical
School (CMU).
Development Programs
Immuno-oncology
The Company's ongoing program to develop cell-based
immunotherapies to treat cancer is based on its proprietary
self-delivering RNAi (sd-rxRNA) technology platform. Recently, the
Company announced that it extended a preclinical research
collaboration with PCI Biotech to the field of
immuno-oncology. This new preclinical research collaboration
agreement reflects PCI Biotech's focus on oncology and the
expansion of RXi's development pipeline to include immuno-oncology.
In brief, the collaboration will evaluate technology compatibility
and synergy based on in vivo studies. The companies will
evaluate results achieved from this research collaboration and then
explore the potential for a further partnership.
RXi has also selected two sd-rxRNA compounds from its
immuno-oncology pipeline for preclinical development. For oncology
treatments based on adoptive cell transfer (ACT), compounds RXI-762
and RXI-804 suppress the expression of immune checkpoint proteins
PD-1 and TIGIT respectively, which can result in an improved
efficacy to the targeted tumors. This decision triggered the
selection of a manufacturing facility to initiate production of
cGMP grade material, initially for the first of these two compounds
(RXI-762). The latter also supports moving RXI-762 into clinical
development as early as 2018 as part of an ACT therapy.
RXI-109-1402 – Hypertrophic Scarring
The Company's ongoing Phase 2 clinical trial, RXI-109-1402, is
being conducted to evaluate RXI-109, a sd-rxRNA compound targeting
connective tissue growth factor (CTGF), a key regulator of scar
formation. This open-label, multi-center, study is designed to
evaluate the effectiveness and safety of RXI-109 to reduce scar
formation in healthy volunteers post scar revision surgery. The
Company expects to share final study outcomes before the end of
this year.
RXI-109-1501 – Retinal Scarring in Advanced Age-related
Macular Degeneration (AMD)
Enrollment is complete in this Phase 1/2 study evaluating the
safety and clinical activity of RXI-109 to prevent the progression
of retinal scarring, a harmful component of numerous retinal
diseases. This study is a multi-dose, dose escalation trial
conducted in patients with advanced neovascular or wet age-related
macular degeneration (AMD) where retinal scarring can result in
continued vision loss. The primary endpoint for RXI-109-1501 is to
evaluate the safety and tolerability of RXI-109. Additional
endpoints will assess RXI-109's potential for clinical activity
using numerous assessments to monitor ocular health and visual
acuity. The Company expects to complete subject participation
in the study by the end of 2017 and to share top-line data in early
2018.
RXI-SCP-1502 – Treatment of Cutaneous Warts
Samcyprone™, a proprietary topical formulation of the small
molecule diphenylcyclopropenone (DPCP), is being evaluated in a
Phase 2a clinical trial. RXI-SCP-1502 is a multi-center, multi-dose
trial conducted in subjects with at least one cutaneous, plantar or
periungual wart. The Company expects to share early read-outs
before the end of this year.
RXI-231 - Consumer Care Products
The Company has initiated its consumer testing program with
RXI-231, a cosmetic ingredient based on sd-rxRNA that targets
tyrosinase (TYR). The cosmetic product is a gel formulation
designed to aid in the reduction of pigmentation and thereby
improving skin appearance. The consumer testing program will
evaluate the use and consumer acceptability of RXI-231.
There are three studies under this program. The first two
studies in volunteers are performed to determine irritation and
sensitization potential of the gel product containing RXI-231 when
applied to the skin. A third study investigates the potential
of the product to improve the appearance of skin pigmentation
induced by UV exposure. The Company projects to report results
before the end of this year.
About RXi Pharmaceuticals Corporation
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, scientists at RXi have harnessed the
naturally occurring RNAi process which can be used to "silence" or
down-regulate the expression of a specific gene that may be
overexpressed in a disease condition. RXi developed a robust
RNAi therapeutic platform including self-delivering RNA (sd-rxRNA®)
compounds, that have the ability to selectively block the
expression of any target in the genome, thus providing
applicability to many therapeutic areas. Our current programs
include dermatology, ophthalmology and cell-based cancer
immunotherapy. RXi's extensive patent portfolio provides for
multiple product and business development opportunities across a
broad spectrum of therapeutic areas and we actively pursue research
collaborations, partnering and out-licensing opportunities with
academia and pharmaceutical companies. For additional
information, visit the Company's website, www.rxipharma.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about: our ability to successfully develop RXI-109, Samcyprone™ and
our other product candidates (collectively, "our product
candidates"); the future success of our clinical trials with our
product candidates; the timing for the commencement and completion
of clinical trials; our ability to enter into strategic
partnerships and the future success of these strategic
partnerships; and our ability to deploy our sd-rxRNA® technology
through partnerships, as well as the prospects of these
partnerships to provide positive returns. Forward-looking
statements about expectations and development plans of RXi's
product candidates and partnerships involve significant risks and
uncertainties, including the following: 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; and risks that other companies or organizations may
assert patent rights preventing us from developing or
commercializing our product candidates. Additional risks are
detailed in our most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q under the caption "Risk
Factors." Readers are urged to review these risk factors and
to not act in reliance on any forward-looking statements, as actual
results may differ from those contemplated by our forward-looking
statements. RXi does not undertake to update forward-looking
statements to reflect a change in its views, events or
circumstances that occur after the date of this release.
Contact
RXi Pharmaceuticals Corporation
Tamara McGrillen
508-929-3646
tmcgrillen@rxipharma.com
RXi
PHARMACEUTICALS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three
|
|
For the
Three
|
|
For the
Six
|
|
For the
Six
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Net
revenues
|
$
—
|
|
$
9
|
|
$
—
|
|
$
19
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
1,329
|
|
1,339
|
|
2,676
|
|
2,644
|
Acquired
in-process research and
development
|
85
|
|
—
|
|
3,075
|
|
—
|
General and
administrative
|
1,100
|
|
885
|
|
2,223
|
|
1,835
|
Total operating expenses
|
2,514
|
|
2,224
|
|
7,974
|
|
4,479
|
Operating
loss
|
(2,514)
|
|
(2,215)
|
|
(7,974)
|
|
(4,460)
|
Total other
income
|
—
|
|
3
|
|
—
|
|
17
|
|
$
(2,514)
|
|
$
(2,212)
|
|
$
(7,974)
|
|
$
(4,443)
|
Net loss per common share:
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
$
(0.11)
|
|
$
(0.34)
|
|
$
(0.37)
|
|
$
(0.68)
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
Basic and
diluted
|
22,388,360
|
|
6,534,846
|
|
21,484,772
|
|
6,534,846
|
RXi
PHARMACEUTICALS CORPORATION
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(Amounts in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
7,702
|
|
$
12,906
|
|
Restricted
cash
|
50
|
|
50
|
|
Prepaid
expenses
|
337
|
|
150
|
|
Total current
assets
|
8,809
|
|
13,106
|
|
Property and
equipment, net
|
275
|
|
114
|
|
Notes
receivable
|
—
|
|
150
|
|
Other
assets
|
27
|
|
27
|
|
Total
assets
|
$
8,391
|
|
$
13,397
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
741
|
|
$
917
|
|
Accrued
expenses
|
1,713
|
|
1,625
|
|
Total current
liabilities
|
2,454
|
|
2,542
|
|
Total stockholders'
equity
|
5,937
|
|
10,855
|
|
Total liabilities and
stockholders' equity
|
$
8,391
|
|
$
13,397
|
|
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SOURCE RXi Pharmaceuticals Corporation