Cassava Sciences Announces Second Quarter 2019 Financial Results
August 12 2019 - 8:30AM
Cassava Sciences, Inc. (Nasdaq: SAVA), a clinical-stage
biopharmaceutical company developing PTI-125 for Alzheimer’s
disease, today reported financial results for the second quarter
ended June 30, 2019. Net loss for the second quarter 2019 was $1.1
million, or $0.06 per share, as compared to a net loss of $2.5
million for the same period in 2018. Net cash use was $0.6
million during the second quarter of 2019.
Cassava Sciences ended the second quarter 2019
with $18.5 million of cash and cash equivalents, and no
debt.
About PTI-125PTI-125 is an
investigational drug candidate for Alzheimer’s disease. We
developed this small molecule drug to target a process known as
“protein misfolding.” PTI-125 has a novel mechanism of action: it
stabilizes a critical protein that is otherwise altered and
misfolded in the Alzheimer’s brain. PTI-125 has demonstrated both
cognitive improvement and slowing of disease progression in animal
models of disease. We are also developing a blood-based
diagnostic to detect Alzheimer’s disease, called PTI-125Dx.
The goal of PTI-125Dx is to make the detection of Alzheimer’s
disease as simple as getting a blood test.
The underlying science for our scientific
programs is published in prestigious peer-reviewed technical
journals, including Journal of Neuroscience, Neurobiology of Aging,
and Journal of Biological Chemistry. The National Institutes of
Health (NIH) has awarded us several research grants following an
in-depth, confidential review of our science and technology.
In 2019-2020, these NIH grants may represent up to $6.7 million of
non-dilutive financing.
Financial Highlights for Second Quarter
2019
- At June 30, 2019, cash and cash
equivalents were $18.5 million, compared to $19.8 million at
December 31, 2018. Net cash utilized during the second
quarter 2019 was $0.6 million. We have no debt.
- Net loss was $1.1 million compared
to $2.5 million for the same period in the prior year, representing
a 57% decrease. Net loss per share was $0.06 compared to
$0.36 for the same period in the prior year.
- We received research grant funding
reimbursements of $1.4 million from NIH and recorded this as a
reduction in research and development expenses (“R&D”).
This compared to $0.4 million of NIH grant receipts received for
the same period in the prior year.
- Net R&D expenses were $0.3
million. This compared to $1.5 million for the same period in
the prior year, representing a 79% decrease. The decrease was
due primarily to the increase in NIH grant funding in 2019 compared
to the prior year combined with a decrease in non-cash stock-based
compensation expense. R&D expenses included non-cash stock
related compensation costs of $0.1 million compared to $0.3 million
for same period in the prior year.
- General and administrative
(“G&A”) expenses were $0.8 million. This compared to $1.0
million for the same period in 2018, representing a 15%
decrease. G&A expenses included non-cash stock-based
compensation costs of $0.2 million compared to $0.4 million for the
same period in the prior year.
About Alzheimer's
Disease Alzheimer’s disease is a progressive brain
disorder that destroys memory and thinking skills. Eventually, a
person with Alzheimer’s disease may be unable to carry out even
simple tasks. Currently, there are no drug therapies to halt
Alzheimer’s disease, much less reverse its course.
An estimated 5.8 million Americans of all ages are
living with Alzheimer's disease in 2019.
About Cassava Sciences,
Inc.The mission of Cassava Sciences is to detect and treat
neurodegenerative diseases, such as Alzheimer’s disease. Over
the past ten years, we have combined state-of-the-art technology
with new insights in neurobiology to develop novel solutions for
Alzheimer’s disease. We own worldwide development and commercial
rights to our research programs in Alzheimer’s disease, and related
technology, without royalty obligations to any third-party.
For More Information Contact:Eric SchoenChief
Financial Officereschoen@CassavaSciences.com(512) 501-2450
Note Regarding Forward-Looking
Statements: This press release contains forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995 (the "Act"). Cassava Sciences disclaims any
intent or obligation to update these forward-looking statements and
claims the protection of the Safe Harbor for forward-looking
statements contained in the Act. Examples of such statements
include, but are not limited to, statements regarding the timing of
clinical studies and the potential benefits of the Company’s
programs in Alzheimer’s disease, including our ongoing Phase 2
program, and expected cash use in future periods. The Company
cautions that forward-looking statements are inherently uncertain.
Such statements are based on management's current expectations, but
actual results may differ materially due to various factors. Such
statements involve risks and uncertainties, including, but not
limited to, those risks and uncertainties relating to development
and testing of our drug candidates; unexpected adverse side effects
or inadequate therapeutic efficacy of our drug candidates; the
uncertainty of patent protection for our intellectual property or
trade secrets; unanticipated additional research and development,
litigation and other costs; the need to raise additional funding
from time-to-time, and the potential for competing products to be
developed by competitors and potential competitors or others.
Existing and prospective investors are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof. Except as required by law, the Company
disclaims any intention or responsibility for updating or revising
any forward-looking statements contained in this press
release. For further information regarding these and other
risks related to our business, investors should consult our filings
with the U.S. Securities and Exchange Commission (SEC), which are
available on the SEC's website at www.sec.gov.
– Financial Tables Follow –
CASSAVA SCIENCES, INC. |
|
CONDENSED STATEMENTS OF OPERATIONS |
|
(unaudited, in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
$ |
308 |
|
|
$ |
1,463 |
|
|
$ |
882 |
|
|
$ |
2,532 |
|
|
General and administrative |
|
845 |
|
|
|
998 |
|
|
|
1,722 |
|
|
|
2,097 |
|
|
Total operating expenses |
|
1,153 |
|
|
|
2,461 |
|
|
|
2,604 |
|
|
|
4,629 |
|
|
Operating
loss |
|
(1,153 |
) |
|
|
(2,461 |
) |
|
|
(2,604 |
) |
|
|
(4,629 |
) |
|
Interest
income |
|
94 |
|
|
|
9 |
|
|
|
186 |
|
|
|
16 |
|
|
Net loss |
$ |
(1,059 |
) |
|
$ |
(2,452 |
) |
|
$ |
(2,418 |
) |
|
$ |
(4,613 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used
in computing net loss per share, basic and diluted |
|
17,162 |
|
|
|
6,838 |
|
|
|
17,162 |
|
|
|
6,739 |
|
|
|
|
|
|
CONDENSED BALANCE SHEETS |
|
(unaudited, in thousands) |
|
|
|
|
|
|
|
June 30, 2019 |
|
December 31, 2018 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
$ |
18,534 |
|
|
$ |
19,807 |
|
|
Other current assets |
|
|
|
|
|
|
49 |
|
|
|
233 |
|
|
Total current assets |
|
|
|
|
|
18,583 |
|
|
|
20,040 |
|
|
Property and equipment, net |
|
|
|
|
|
75 |
|
|
|
87 |
|
|
Operating lease right-of-use assets |
|
|
|
|
|
135 |
|
|
|
— |
|
|
Other assets |
|
|
|
|
|
12 |
|
|
|
12 |
|
|
Total assets |
|
|
|
|
$ |
18,805 |
|
|
$ |
20,139 |
|
|
Liabilities and stockholders'
equity |
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
$ |
594 |
|
|
$ |
294 |
|
|
Accrued development expense |
|
|
|
|
|
179 |
|
|
|
156 |
|
|
Accrued compensation and benefits |
|
|
|
|
|
60 |
|
|
|
61 |
|
|
Operating lease liabilities, current |
|
|
|
|
|
90 |
|
|
|
— |
|
|
Other accrued liabilities |
|
|
|
|
|
14 |
|
|
|
— |
|
|
Total current liabilities |
|
|
|
|
|
937 |
|
|
|
511 |
|
|
Operating lease liabilities, non-current |
|
|
|
|
|
45 |
|
|
|
— |
|
|
Total liabilities |
|
|
|
|
|
982 |
|
|
|
511 |
|
|
Stockholders'
equity |
|
|
|
|
|
|
|
|
|
|
Common Stock and additional paid-in-capital |
|
|
|
|
|
184,197 |
|
|
|
183,584 |
|
|
Accumulated deficit |
|
|
|
|
|
(166,374 |
) |
|
|
(163,956 |
) |
|
Total stockholders' equity |
|
|
|
|
|
17,823 |
|
|
|
19,628 |
|
|
Total liabilities and stockholders' equity |
|
|
|
|
$ |
18,805 |
|
|
$ |
20,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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