XERAVA Carton Sales Grew over 45% Compared with
the Third Quarter of 2019
XERAVA is on formulary or available at 1,200
Institutions
Increased Formulary Uptake, with a 99% Success
Rate for all Formulary Reviews to Date
Tetraphase Pharmaceuticals, Inc. (NASDAQ:TTPH), a
biopharmaceutical company focused on commercializing its novel
tetracycline XERAVA to treat serious and life-threatening
infections, today reported financial results for the fourth quarter
and year ended December 31, 2019, provided an overview of recent
achievements, and highlighted key milestones for 2020.
“We made significant progress throughout 2019, ending the year
with $3.6 million in XERAVA net sales for the full year and a
quarter-to-quarter net revenue increase in the fourth quarter of
2019 of 49.3%. Our sales consist solely of actual use and not
stocking retail or other channels,” said Larry Edwards, President
and Chief Executive Officer of Tetraphase. “We believe XERAVA is a
critically important new addition to the hospital antibiotic
armamentarium, and we remain committed to increasing formulary
uptake and reaching all of our targeted accounts. The
reorganization efforts we undertook in 2019 to create a streamlined
organization singularly focused on the commercialization of XERAVA,
including the elimination of our research and development function,
are central to the success of our mission. With two recently
completed equity offerings in November 2019 and January 2020 adding
to our balance sheet, we are now in a stronger financial position
to execute on our goals.”
Key Milestones for 2020
- Complete 143 formulary reviews for XERAVA by mid-year
- Continue pulling through appropriate utilization at the 1,200
hospitals at which XERAVA is on formulary or available
- Continue double-digit quarter over quarter growth for
XERAVA
- Create additional opportunities in TIER 2 and TIER 3
Accounts
- Out-license pipeline assets and enter into arrangements for
commercialization of XERAVA in Europe and Latin America
- Filing by Everest Medicines for regulatory approval of XERAVA
for complicated intra-abdominal infections in China in the fourth
quarter of 2020
Fourth Quarter and Recent Highlights
- Continued to Progress Launch of XERAVA in U.S. Hospitals
With High Antibiotic Usage The Company continues to see
increased formulary uptake, with a 99% success rate for all
formulary reviews to date and $3.6 million in XERAVA sales for the
full-year 2019. XERAVA sales for 2018 were $178,000. Tetraphase’s
salesforce is now focusing on bringing XERAVA to both Tier 1 as
well as Tier 2 institutions, which are the highest users of
antibiotics defined by days of therapy. The reorder rate for XERAVA
continues to be strong, with reorder rates as high as 67% for all
accounts and approximately 77% within the Tier 1 account segment.
XERAVA is on formulary or available at more than 1,200 accounts and
approximately 143 formulary reviews are pending or planned to take
place over the next six months.
- Completed Two Equity Financings Totaling Net Proceeds of
$23.0 Million In January 2020, the Company completed a private
placement with Armistice Capital, LLC, a healthcare-focused
institutional investor, priced at-the-market, that generated gross
proceeds of approximately $10 million. In addition, the Company
concurrently completed a registered direct offering with certain
healthcare-focused institutional investors, priced at-the-market,
that generated gross proceeds of approximately $7.5 million. The
net proceeds from the concurrent January 2020 private placement and
registered direct offering were approximately $15.9 million. In
November 2019, the Company completed a registered direct offering
with Armistice Capital, LLC, a healthcare-focused institutional
investor, priced at-the-market, that generated net proceeds of
approximately $7.1 million. The Company issued warrants in
connection with all of the financings listed above.
Fourth Quarter and Full-Year 2019 Financial Results
As of December 31, 2019, Tetraphase had cash and cash
equivalents of $21.2 million and 3.5 million shares outstanding.
Subsequent to the end of the fourth quarter, the Company raised an
additional $15.9 million in net proceeds via an equity offering.
The Company expects that its cash and cash equivalents, including
the equity proceeds and its expected revenue, will be sufficient to
fund operations into the first quarter of 2021.
For the fourth quarter of 2019, Tetraphase reported a net loss
of $11.4 million, or $2.75 per share, compared to a net loss of
$21.5 million, or $8.00 per share, for the same period in 2018,
driven by both increased product revenues and lower operating
expenses. For the year ended December 31, 2019, Tetraphase reported
a net loss of $70.1 million, or $22.85 per share, compared to a net
loss of $72.2 million, or $27.48 per share, for the same period in
2018.
Total revenues were $1.7 million for the fourth quarter of 2019,
of which $1.5 million was from sales of XERAVA, compared to $4.3
million for the same period in 2018, of which $178,000 was from
sales of XERAVA. Total revenues were $7.4 million for the year
ended December 31, 2019, of which $3.6 million was from sales of
XERAVA, compared to $18.9 million for the same period in 2018, of
which $178,000 was from sales of XERAVA. Total revenues for the
fourth quarter and year ended December 31, 2019 consisted of XERAVA
product revenue, license and collaboration revenue from the
Company’s relationship with Everest Medicines and government
contract revenue. The primary driver of the year over year decrease
in revenue was a reduction in the up front and regulatory
milestones received from the Company’s relationship with Everest
Medicines and the wind down of its government awards and grants and
the related revenue.
Research and development (R&D) expenses for the fourth
quarter of 2019 were $2.5 million, compared to $10.7 million for
the same period in 2018. R&D expenses for the year ended
December 31, 2019 were $22.8 million, compared to $54.9 million for
the same period in 2018. The significant year over year decrease in
R&D expenses was driven by the completion of XERAVA development
and our corporate reorganization in June 2019, which included the
cessation of development of our pipeline candidates.
Selling, general and administrative (SG&A) expenses for the
fourth quarter of 2019 were $9.3 million, compared to $14.7 million
for the same period in 2018. SG&A expenses for the year ended
December 31, 2019 were $49.0 million, compared to $37.1 million for
the same period in 2018. The decrease in fourth quarter 2019
SG&A expenses compared to fourth quarter 2018 SG&A expenses
was driven by our 2019 corporate reorganization and by up-front
Xerava launch expenses incurred in the fourth quarter of 2018. The
increase in full year 2019 SG&A expenses compared to full year
2018 SG&A expenses was driven primarily by a full year of
commercial and medical affairs expenses in 2019 following the
fourth quarter 2018 launch of Xerava.
About XERAVATM
XERAVA (eravacycline for injection) is a tetracycline class
antibacterial indicated for the treatment of complicated
intra-abdominal infections (cIAI) in patients 18 years of age and
older. XERAVA was investigated for the treatment of cIAI as part of
the Company's IGNITE (Investigating Gram-Negative Infections
Treated with Eravacycline) Phase 3 program. In the first pivotal
Phase 3 trial in patients with cIAI, twice-daily intravenous (IV)
XERAVA met the primary endpoint by demonstrating statistical
non-inferiority of clinical response compared to ertapenem and was
well-tolerated. In the second Phase 3 clinical trial in patients
with cIAI, twice-daily IV XERAVA met the primary endpoint by
demonstrating statistical non-inferiority of clinical response
compared to meropenem and was well-tolerated. In both trials,
XERAVA achieved high cure rates in patients with Gram-negative
pathogens, including resistant isolates.
XERAVATM Important Safety Information
XERAVA is a tetracycline class antibacterial indicated for the
treatment of complicated intra-abdominal infections in patients 18
years of age and older.
XERAVA is not indicated for the treatment of complicated urinary
tract infections.
To reduce the development of drug-resistant bacteria and
maintain the effectiveness of XERAVA and other antibacterial drugs,
XERAVA should be used only to treat or prevent infections that are
proven or strongly suspected to be caused by susceptible
bacteria.
XERAVA is contraindicated for use in patients with known
hypersensitivity to eravacycline, tetracycline-class antibacterial
drugs or to any of the excipients. Life-threatening
hypersensitivity (anaphylactic) reactions have been reported with
XERAVA.
The use of XERAVA during tooth development (last half of
pregnancy, infancy and childhood to the age of eight years) may
cause permanent discoloration of the teeth (yellow-gray-brown) and
enamel hypoplasia.
The use of XERAVA during the second and third trimester of
pregnancy, infancy and childhood up to the age of eight years may
cause reversible inhibition of bone growth.
Clostridium difficile associated diarrhea (CDAD) has been
reported with use of nearly all antibacterial agents and may range
in severity from mild diarrhea to fatal colitis.
The most common adverse reactions observed in clinical trials
(incidence ≥ 3%) were infusion site reactions, nausea, and
vomiting.
XERAVA is structurally similar to tetracycline-class
antibacterial drugs and may have similar adverse reactions. Adverse
reactions including photosensitivity, pseudotumor cerebri, and
anti-anabolic action which has led to increased blood urea
nitrogen, azotemia, acidosis, hyperphosphatemia, pancreatitis, and
abnormal liver function tests, have been reported for other
tetracycline-class antibacterial drugs, and may occur with XERAVA.
Discontinue XERAVA if any of these adverse reactions are
suspected.
To report SUSPECTED ADVERSE REACTIONS, contact Tetraphase
Pharmaceuticals Inc., at 1-833-7-XERAVA (1-833-793-7282) or FDA at
1-800-FDA-1088 or www.fda.gov/medwatch.
Please see full prescribing information for XERAVA.
About Tetraphase Pharmaceuticals, Inc.
Tetraphase Pharmaceuticals, Inc., is a biopharmaceutical company
using its proprietary chemistry technology to create novel
tetracyclines for serious and life-threatening conditions,
including infections caused by many of the multidrug-resistant
bacteria highlighted as urgent public health threats by the World
Health Organization and the Centers for Disease Control and
Prevention. The Company has created more than 3,000 novel
tetracycline compounds using its proprietary technology platform.
Tetraphase's lead product XERAVA™ is approved for the treatment of
complicated intra-abdominal infections by the U.S. Food and Drug
Administration and the European Medicines Agency. The Company’s
pipeline also includes antibiotics TP-271 and TP-6076, which are
Phase 2 ready, and TP-2846, which is in preclinical testing for
acute myeloid leukemia. The Company intends to out license its
pipeline candidates. Please visit www.tphase.com for more company
information.
Forward-Looking Statements
Any statements in this press release about our future
expectations, plans and prospects, including statements regarding
our strategy, future operations, prospects, plans and objectives,
including our anticipated sales revenue, cash runway, and other
statements containing the words "anticipates," "believes,"
"expects," "plans," "will" and similar expressions, constitute
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those indicated by such forward-looking statements
as a result of various important factors, including our cash runway
and the expected revenue will be sufficient to fund our operations
in the future and other commercial risk factors discussed in the
"Risk Factors" section of our annual report on Form 10-K for the
year ended December 31, 2019, filed with the Securities and
Exchange Commission on March 12, 2020. In addition, the
forward-looking statements included in this press release represent
our views as of March 12, 2020. We anticipate that subsequent
events and developments will cause our views to change. However,
while we may elect to update these forward-looking statements at
some point in the future, we specifically disclaim any obligation
to do so.
Tetraphase Pharmaceuticals,
Inc.
Condensed Consolidated Balance
Sheets (unaudited)
(In thousands)
December 31,
December 31,
2019
2018
Assets Cash and cash equivalents
$
21,239
$
107,776
Accounts receivable, net
1,503
2,274
Contract asset
-
3,000
Inventory
1,595
748
Prepaid expenses and other current assets
2,156
2,674
Property and equipment, net
98
1,121
Intangibles assets, net
4,259
4,652
Operating lease right-of-use assets
4,836
-
Restricted cash
699
699
Total assets
$
36,385
$
122,944
Liabilities and Stockholders' equity Accounts payable
and accrued expenses
$
8,223
$
14,971
Operating lease liabilities
4,995
-
Loan payable, long term
-
28,291
Total stockholders' equity
23,167
79,682
Total liabilities and stockholders' equity
$
36,385
$
122,944
Tetraphase Pharmaceuticals,
Inc.
Condensed Consolidated
Statement of Operations (Unaudited)
(In thousands, except per
share data)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Revenues: Product revenue, net
$
1,460
$
178
$
3,575
$
178
License and collaboration revenue
-
3,177
2,000
12,677
Government revenue
230
928
1,801
6,049
Total revenue
1,690
4,283
7,376
18,904
Expenses: Cost of revenue - product sales
1,334
130
2,687
130
Cost of revenue - intangible asset amortization
98
98
393
98
Research and development
2,534
10,717
22,785
54,879
Selling, general and administrative
9,266
14,727
49,043
37,078
Total expenses
13,232
25,672
74,908
92,185
Loss from operations
(11,542
)
(21,389
)
(67,532
)
(73,281
)
Other income and expenses
170
(92
)
(2,553
)
1,123
Net loss
$
(11,372
)
$
(21,481
)
$
(70,085
)
$
(72,158
)
Net loss per share-basic and diluted
$
(2.75
)
$
(8.00
)
$
(22.85
)
$
(27.49
)
Weighted-average number of common shares used in net loss per
share-basic and diluted
4,139
2,683
3,067
2,625
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Media and Investor Contact: Argot Partners Maeve
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