Kadmon Holdings, Inc. (NYSE: KDMN) today provided an update on
upcoming milestones and recent achievements, and reported financial
and operational results for the fourth quarter and full year ended
December 31, 2017.
“In the past year, we have delivered on multiple key milestones,
including reporting positive clinical results in cGVHD and IPF. Our
successes bring us closer to our goal of developing innovative
therapies for major unmet medical needs,” said Harlan W. Waksal,
M.D., President and Chief Executive Officer at Kadmon. “We are in a
strong financial position to continue our programs in these and
other diseases, with an emphasis on defining pathways to regulatory
approval.”
2018 Anticipated Key Clinical Milestones:
KD025
- Continue dialogue with the U.S. Food
and Drug Administration (FDA) regarding the Company’s regulatory
strategy for KD025 in various clinical indications
- Initiate new Phase 2 clinical trial in
cGVHD
- Initiate new Phase 2 clinical trial in
IPF
- Initiate new Phase 2 clinical trial in
scleroderma
KD034
- Continue dialogue with the FDA
regarding its review and potential approval of KD034, the Company’s
generic trientine hydrochloride formulation, for the treatment of
Wilson’s disease
Fourth Quarter 2017 and Recent Highlights
KD025
- In October 2017, the FDA granted orphan
drug designation to KD025 for the treatment of cGVHD. Throughout
2017 and early 2018, Kadmon reported positive results from the
ongoing Phase 2 clinical trial in patients with steroid-dependent
or refractory cGVHD, achieving clinical responses in approximately
two-thirds of patients, with no treatment-related serious adverse
events.
- In early 2018, Kadmon reported positive
findings from the ongoing Phase 2 clinical trial in IPF, showing
that KD025 was well tolerated and demonstrated clinical activity,
with a median decline in forced vital capacity (FVC), a measure of
lung function, of 48 mL at week 24, compared to a median decline of
175 mL with best supportive care, an absolute difference of 127 mL
and a relative difference of 73%.
- Kadmon is designing a Phase 2 clinical
trial of KD025 in scleroderma (also known as systemic sclerosis), a
disease in which ROCK inhibition has been shown to have significant
potential.
Tesevatinib
- In November 2017, Kadmon initiated a
Phase 2, randomized, double-blind, placebo-controlled trial of
tesevatinib for the treatment of autosomal dominant polycystic
kidney disease (ADPKD).
- In September 2017, Kadmon initiated a
Phase 1 dose-finding clinical trial of tesevatinib for the
treatment of autosomal recessive polycystic kidney disease
(ARPKD).
KD034
- In December 2016, Kadmon submitted an
ANDA for its bottled generic formulation of trientine
hydrochloride. In March 2017, Kadmon submitted a second ANDA for
its generic form of trientine hydrochloride in blister packaging
that offers room temperature stability. The Company is in dialogue
with the FDA regarding the FDA’s review of KD034.
Financial Results
Fourth Quarter 2017 Results
Loss from operations for the three months ended
December 31, 2017 was $17.2 million, compared to $19.6 million
for the same period in 2016.
Revenue for the three months ended December 31, 2017
was $1.5 million, compared to $4.3 million for the same period
in 2016.
Research and development expenses for the three months ended
December 31, 2017 were $10.5 million, compared
to $8.5 million for the same period in 2016.
Selling, general and administrative expenses for the three
months ended December 31, 2017 were $7.9
million, compared to $14.6 million for the same
period in 2016.
Full Year 2017 Results
Loss from operations for the year ended December 31, 2017
was $68.6 million, compared to $115.4 million for the same period
in 2016.
Revenue for the year ended December 31, 2017 was $12.3
million, compared to $26.1 million for the same period in 2016. The
Company does not place significant value on its commercial
operations from a revenue-generating standpoint; however, the
Company leverages its commercial infrastructure to support the
development of its clinical-stage product candidates by providing
quality assurance, compliance, regulatory and pharmacovigilance
capabilities, among others.
Research and development expenses for the year ended
December 31, 2017 were $40.8 million, compared
to $35.8 million for the same period in 2016.
Selling, general and administrative expenses for the year ended
December 31, 2017 were $37.1 million, compared
to $105.9 million for the same period in 2016. The
decrease in selling, general and administrative expenses is
primarily related to a decrease in share-based compensation of
$34.6 million, a decrease in amortization of intangible assets of
$15.2 million due to the intangible asset being fully amortized at
December 31, 2016, as well as, a reduction in headcount, legal
expense primarily related to legal settlements entered into during
2016, and a decrease in royalty expense and consulting fees
resulting from the expiration of an advisory agreement entered into
in April 2015.
Liquidity and Capital Resources
At December 31, 2017, Kadmon’s cash and cash equivalents
totaled $67.5 million, compared to $36.1
million at December 31, 2016.
About Kadmon Holdings, Inc.
Kadmon Holdings, Inc. is a fully integrated biopharmaceutical
company developing innovative products for significant unmet
medical needs. We have a product pipeline focused on inflammatory
and fibrotic diseases.
Forward Looking Statements
This press release contains forward-looking statements. Such
statements may be preceded by the words “may,” “will,” “should,”
“expects,” “plans,” “anticipates,” “could,” “intends,” “targets,”
“projects,” “contemplates,” “believes,” “estimates,” “predicts,”
“potential” or “continue” or the negative of these terms or other
similar expressions. Forward-looking statements involve known and
unknown risks, uncertainties and other important factors that may
cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. We believe that these factors include, but are not
limited to, (i) the initiation, timing, progress and results of our
preclinical studies and clinical trials, and our research and
development programs; (ii) our ability to advance product
candidates into, and successfully complete, clinical trials; (iii)
our reliance on the success of our product candidates; (iv) the
timing or likelihood of regulatory filings and approvals; (v) our
ability to expand our sales and marketing capabilities; (vi) the
commercialization of our product candidates, if approved; (vii) the
pricing and reimbursement of our product candidates, if approved;
(viii) the implementation of our business model, strategic plans
for our business, product candidates and technology; (ix) the scope
of protection we are able to establish and maintain for
intellectual property rights covering our product candidates and
technology; (x) our ability to operate our business without
infringing the intellectual property rights and proprietary
technology of third parties; (xi) costs associated with defending
intellectual property infringement, product liability and other
claims; (xii) regulatory developments in the United States, Europe
and other jurisdictions; (xiii) estimates of our expenses, future
revenues, capital requirements and our needs for additional
financing; (xiv) the potential benefits of strategic collaboration
agreements and our ability to enter into strategic arrangements;
(xv) our ability to maintain and establish collaborations or obtain
additional grant funding; (xvi) the rate and degree of market
acceptance of our product candidates; (xvii) developments relating
to our competitors and our industry, including competing therapies;
(xviii) our ability to effectively manage our anticipated growth;
(xix) our ability to attract and retain qualified employees and key
personnel; (xx) our ability to achieve cost savings and other
benefits from our efforts to streamline our operations and to not
harm our business with such efforts; (xxi) the use of proceeds from
our recent public offerings; (xxii) the potential benefits of any
of our product candidates being granted orphan drug designation;
(xxiii) the future trading price of the shares of our common stock
and impact of securities analysts’ reports on these prices; and/or
(xxiv) other risks and uncertainties. More detailed information
about Kadmon and the risk factors that may affect the realization
of forward-looking statements is set forth in the Company’s filings
with the U.S. Securities and Exchange Commission (the “SEC”),
including the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2017. Investors and security holders are
urged to read these documents free of charge on the SEC’s website
at www.sec.gov. The Company assumes no obligation to publicly
update or revise its forward-looking statements as a result of new
information, future events or otherwise.
Kadmon Holdings, Inc.
Consolidated Statements of Operations (in thousands,
except per share data)
Three Months Ended December
31,
Year Ended December 31, 2017 2016 2017
2016 Revenues Net sales $ 187 $ 3,010 $ 5,257 $ 18,514
License and other revenue 1,277 1,267
7,007 7,541 Total revenue 1,464 4,277
12,264 26,055 Cost of sales 222 640 1,332 3,485 Write-down of
inventory (22 ) 119 1,654
385 Gross profit 1,264 3,518
9,278 22,185 Operating expenses:
Research and development 10,499 8,539 40,777 35,840 Selling,
general and administrative 7,916 14,620 37,057 105,880 Gain on
settlement of payable — — —
(4,131 ) Total operating expenses 18,415
23,159 77,834 137,589
Loss from operations (17,151 ) (19,641 )
(68,556 ) (115,404 ) Total other expense (income)
1,476 1,716 11,339 93,009 Income tax expense (437 )
27 (121 ) 342 Net loss $ (18,190 ) $
(21,384 ) $ (79,774 ) $ (208,755 ) Deemed dividend on convertible
preferred stock 490 469 1,918
21,733 Net loss attributable to common
stockholders $ (18,680 ) $ (21,853 ) $ (81,692 ) $ (230,488 )
Basic and diluted net loss per share of common stock $ (0.24
) $ (0.48 ) $ (1.42 ) $ (9.74 ) Weighted average basic and diluted
shares of common stock outstanding 78,397,156
45,078,666 57,405,331 23,674,512
Kadmon Holdings,
Inc. Condensed Consolidated Balance Sheets (in
thousands) December 31, 2017 2016
Cash and cash equivalents $ 67,517 $ 36,093 Other current
assets 2,496 4,194 Other noncurrent assets
13,539 22,269 Total
assets $ 83,552 $ 62,556
Current liabilities 56,644 24,746 Other long term
liabilities 25,150 34,325 Secured term debt – net of current
portion and discount —
28,677 Total liabilities
81,794 87,748 Total
stockholders’ equity (deficit) 1,758
(25,192 ) Total liabilities and
stockholders’ equity (deficit) $ 83,552 $
62,556
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Kadmon Holdings, Inc.Ellen Tremaine, 646-490-2989Investor
Relationsellen.tremaine@kadmon.com
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