Nabriva Therapeutics Reports Third Quarter 2017 Financial Results and Recent Corporate Highlights
November 09 2017 - 7:00AM
- Positive topline results from pivotal LEAP 1
trial announced in September, with read-out from second Phase 3
trial, LEAP 2, expected in the spring of 2018 -
Nabriva Therapeutics plc (NASDAQ:NBRV), a clinical-stage
biopharmaceutical company engaged in the research and development
of novel anti-infective agents to treat serious infections, with a
focus on the pleuromutilin class of antibiotics, today provided a
business and clinical development update and reported its financial
results for the quarter ended September 30, 2017.
In September, Nabriva Therapeutics delivered
positive topline results from the lefamulin evaluation against
pneumonia (LEAP 1) Phase 3 trial. The company remains on track to
complete patient enrollment for its second Phase 3 trial, LEAP 2,
before year end 2017, and expects topline results in the spring of
2018. Lefamulin is being investigated for the treatment of
community-acquired bacterial pneumonia (CABP).
“The growing problem of bacterial resistance to
commonly prescribed antibiotics continues to be one of the single
greatest threats to public health,” said Dr. Colin Broom, chief
executive officer of Nabriva Therapeutics. “We are excited about
the progress our team continues to make as we advance lefamulin
toward our ultimate goal—bringing a new class of antibiotics to
patients with CABP. Following the positive results from LEAP 1, we
began building our commercial and medical affairs teams and have
attracted extremely talented and experienced individuals. Over the
coming months, our commercial team will focus on market development
activities, while our medical affairs team will educate physician
and hospital communities on the significant medical needs in the
management of CABP.”
RECENT CORPORATE AND DEVELOPMENT
HIGHLIGHTS
- Announced positive topline results from the LEAP 1 global,
Phase 3 clinical trial evaluating IV and oral lefamulin for the
treatment of CABP. Lefamulin met the U.S. Food and Drug
Administration primary endpoint of non-inferiority (NI, 12.5
percent margin) compared to moxifloxacin with or without adjunctive
linezolid for early clinical response assessed 72 to 120 hours
following initiation of therapy in the intent to treat patient
population. Lefamulin also met the co-primary endpoints for
the European Medicines Agency of non-inferiority (NI, 10
percent margin) compared to moxifloxacin with or without adjunctive
linezolid in the modified intent to treat and clinically evaluable
at test of cure populations based on an investigator assessment of
clinical response at a test of cure visit (5 to 10 days following
the completion of study therapy). Lefamulin was shown to be
generally well-tolerated.
- Strengthened the company’s cash resources with the completion
of its public offering. The gross proceeds from the offering were
approximately $80.0 million, before deducting the underwriting
discounts and commissions.
- Presented data detailing in vitro activity of lefamulin against
key pathogens that commonly cause respiratory tract infections and
lefamulin efficacy against Staphylococcus aureus bacteremia in an
animal infection model at the IDWeek 2017 meeting. These data add
to the growing evidence supporting lefamulin’s targeted spectrum of
activity against the pathogens most commonly associated with CABP,
including multi-drug resistant strains.
- Bolstered the senior leadership team with the appointment of
industry expert Francesco Maria Lavino as chief commercial officer
to lead the preparation for the potential commercialization of
lefamulin.
FINANCIAL RESULTS
Three Months Ended September 30, 2017 and
2016
- For the three months ended September 30, 2017, Nabriva reported
a net loss of $22.3 million or $0.79 per share, compared to a net
loss of $14.0 million or $0.66 per share for the three months ended
September 30, 2016.
- Research and development expenses increased by $0.6 million
from $12.1 million for the three months ended September 30,
2016 to $12.7 million for the three months ended September 30,
2017. The change was primarily due to a $0.9 million increase in
staff costs due to the addition of employees and a $0.3 million
increase in stock-based compensation expense, partially offset by a
$0.6 million decrease in research consulting fees.
- General and administrative expense increased by $6.5 million
from $3.0 million for the three months ended September 30,
2016 to $9.5 million for the three months ended September 30,
2017. The increase was primarily due to a $1.9 million increase in
advisory and external consultancy expenses primarily related to
pre-commercialization activities and professional service fees, a
$1.5 million increase in legal fees mainly related to the
redomiciliation of our parent company from Austria to Ireland, a
$1.0 million increase in stock-based compensation expense, a $0.6
million increase in staff costs due to the addition of employees, a
$0.6 million increase in VAT tax expenses and a $0.4 million
increase in support, infrastructure and other corporate costs.
Nine Months Ended September 30, 2017 and
2016
- For the nine months ended September 30, 2017, Nabriva reported
a net loss of $52.1 million or $1.89 per share, compared to a net
loss of $39.7 million or $1.87 per share for the nine months ended
September 30, 2016.
- Research and development expenses increased by $1.3 million
from $35.0 million for the nine months ended September 30,
2016 to $36.4 million for the nine months ended September 30,
2017. The change was primarily due to a $1.7 million increase in
staff costs due to the addition of employees and a $1.0 million
increase in stock-based compensation expense, partially offset by a
$0.8 million decrease in research materials and purchased services
related to the development of lefamulin and a $0.5 million decrease
in research consulting fees.
- General and administrative expense increased by $9.9 million
from $9.4 million for the nine months ended September 30, 2016
to $19.3 million for the nine months ended September 30, 2017.
The increase was primarily due to a $3.1 million increase in legal
fees mainly related to the redomiciliation of our parent company
from Austria to Ireland, a $2.6 million increase in advisory and
external consultancy expenses primarily related to
pre-commercialization activities and professional service fees, a
$1.6 million increase in stock-based compensation expense, a $1.0
million increase in staff costs due to the addition of employees, a
$0.6 million increase in VAT tax expenses, and a $0.7 million
increase in support, infrastructure and other corporate costs.
- As of September 30, 2017, Nabriva had $112.7 million in cash,
cash equivalents and short-term investments compared to $83.9
million as of December 31, 2016. This cash balance is expected to
fund operations into the fourth quarter of 2018.
Please refer to our Annual Report on
Forms 10-K for the fiscal year ended December 31, 2016 and our
Quarterly Report on Form 10-Q for the three and nine months ended
September 30, 2017, filed with the U.S. Securities and Exchange
Commission, for additional information regarding our business and
financial results.
About Nabriva Therapeutics
plcNabriva Therapeutics is a biopharmaceutical
company engaged in the research and development of new medicines to
treat serious bacterial infections, with a focus on the
pleuromutilin class of antibiotics. Nabriva Therapeutics’ medicinal
chemistry expertise has enabled targeted discovery of novel
pleuromutilins, including both intravenous and oral formulations.
Nabriva Therapeutics’ lead product candidate, lefamulin, is a novel
semi-synthetic pleuromutilin antibiotic with the potential to be
the first-in-class available for systemic administration in humans.
The company believes that lefamulin is the first antibiotic with a
novel mechanism of action to have reached late-stage clinical
development in more than a decade. Nabriva has announced positive
topline data for lefamulin from the first of its two global,
registrational Phase 3 clinical trials evaluating lefamulin in
patients with moderate to severe community-acquired bacterial
pneumonia (CABP). Nabriva Therapeutics believes lefamulin
is well-positioned for use as a first-line empiric monotherapy for
the treatment of moderate to severe CABP due to its novel mechanism
of action, targeted spectrum of activity, resistance profile,
achievement of substantial drug concentration in lung tissue and
fluid, oral and IV formulations and a favorable tolerability
profile, with the results of the LEAP 1 trial showing a rate of
treatment-emergent adverse events comparable to moxifloxacin with
or without linezolid. Nabriva Therapeutics intends to
further pursue development of lefamulin for additional indications,
including the treatment of acute bacterial skin and skin structure
infections (ABSSSI), and is developing a formulation of lefamulin
appropriate for pediatric use.
Nabriva Therapeutics owns exclusive,
worldwide rights to lefamulin, which is protected by composition of
matter patents issued in the United
States, Europe and Japan.
Forward-Looking StatementsAny
statements in this press release about future expectations, plans
and prospects for Nabriva, including but not limited to statements
about the development of Nabriva’s product candidates, such as
plans for the design, conduct and timelines of Nabriva’s ongoing
Phase 3 clinical trial of lefamulin for CABP, the clinical utility
of lefamulin for CABP and Nabriva’s plans for filing of regulatory
approvals and efforts to bring lefamulin to market, the development
of lefamulin for additional indications, the development of
additional formulations of lefamulin, plans to pursue research and
development of other product candidates, the sufficiency of
Nabriva’s existing cash resources and other statements containing
the words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“may,” “plan,” “predict,” “project,” “target,” “potential,”
“likely,” “will,” “would,” “could,” “should,” “continue,” 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: the uncertainties inherent in the initiation
and conduct of clinical trials, availability and timing of data
from clinical trials, whether results of early clinical trials or
trials in different disease indications will be indicative of the
results of ongoing or future trials, whether results of Nabriva’s
first Phase 3 clinical trial of lefamulin will be indicative of the
results for its second Phase 3 clinical trial of lefamulin,
uncertainties associated with regulatory review of clinical trials
and applications for marketing approvals, the availability or
commercial potential of product candidates including lefamulin for
use as a first-line empiric monotherapy for the treatment of
moderate to severe CABP, the sufficiency of cash resources and need
for additional financing and such other important factors as are
set forth under the caption “Risk Factors” in Nabriva’s annual and
quarterly reports on file with the U.S. Securities and
Exchange Commission. In addition, the forward-looking statements
included in this press release represent Nabriva’s views as of the
date of this release. Nabriva anticipates that subsequent events
and developments will cause its views to change. However, while
Nabriva may elect to update these forward-looking statements at
some point in the future, it specifically disclaims any obligation
to do so. These forward-looking statements should not be relied
upon as representing Nabriva’s views as of any date subsequent to
the date of this release.
CONTACT:
INVESTOR RELATIONSDave GarrettNabriva Therapeutics
plcdavid.garrett@nabriva.com 610-816-6657
MEDIABenjamin Navon Pure Communications
bnavon@purecommunications.com 617-337-4166
|
|
CONSOLIDATED BALANCE SHEETS
(unaudited) |
|
|
|
|
|
|
|
(in thousands, except per share
data) |
|
As
ofDecember 31,2016 |
|
As ofSeptember 30,
2017 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
32,778 |
|
|
$ |
112,158 |
|
|
Short-term investments |
|
51,106 |
|
|
531 |
|
|
Other receivables |
|
5,561 |
|
|
3,673 |
|
|
Prepaid expenses |
|
1,176 |
|
|
1,510 |
|
|
Total current assets |
|
90,621 |
|
|
117,872 |
|
|
Property,
plant and equipment, net |
|
519 |
|
|
1,405 |
|
|
Intangible
assets, net |
|
270 |
|
|
199 |
|
|
Long-term
receivables |
|
420 |
|
|
420 |
|
|
Deferred
tax assets |
|
1,410 |
|
|
- |
|
|
Total assets |
|
$ |
93,240 |
|
|
$ |
119,896 |
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
2,551 |
|
|
$ |
5,319 |
|
|
Accrued expense and other current liabilities |
|
13,326 |
|
|
11,014 |
|
|
Total current liabilities |
|
15,877 |
|
|
16,333 |
|
|
Non-current
liabilities: |
|
|
|
|
|
Long-term debt |
|
- |
|
|
227 |
|
|
Other non-current liabilities |
|
107 |
|
|
198 |
|
|
Total non-current liabilities |
|
107 |
|
|
425 |
|
|
Total liabilities |
|
|
15,984 |
|
|
|
16,758 |
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
Common shares, no par value, 2,719,695 common shares issued and
outstanding at December 31, 2016 |
|
2,939 |
|
|
- |
|
|
Ordinary shares, nominal value $0.01, 1,000,000,000 ordinary
shares authorized at September 30, 2017; 36,691,490 issued and
outstanding at September 30, 2017 |
|
|
- |
|
|
|
367 |
|
|
Preferred shares, par value $0.01, 100,000,000 shares
authorized at September 30, 2017; None issued and outstanding at
September 30, 2017 |
|
- |
|
|
- |
|
|
Additional paid in capital |
|
279,149 |
|
|
359,680 |
|
|
Accumulated other comprehensive income |
|
10 |
|
|
27 |
|
|
Accumulated deficit |
|
(204,842 |
) |
|
(256,936 |
) |
|
Total stockholders’ equity |
|
|
77,256 |
|
|
103,138 |
|
|
Total liabilities and stockholders’
equity |
|
$ |
93,240 |
|
|
$ |
119,896 |
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(unaudited) |
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
(in thousands, except share and
per share data) |
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Research
premium and grant revenue |
|
$ |
971 |
|
|
$ |
1,468 |
|
|
$ |
4,175 |
|
|
$ |
4,197 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
(12,058 |
) |
|
|
(12,668 |
) |
|
|
(35,037 |
) |
|
|
(36,371 |
) |
|
General
and administrative |
|
|
(2,992 |
) |
|
|
(9,525 |
) |
|
(9,445 |
) |
|
(19,313 |
) |
|
Total
operating expenses |
|
|
(15,050 |
) |
|
|
(22,193 |
) |
|
|
(44,482 |
) |
|
|
(55,684 |
) |
|
Loss from
operations |
|
|
(14,079 |
) |
|
|
(20,725 |
) |
|
|
(40,307 |
) |
|
|
(51,487 |
) |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense), net |
|
|
50 |
|
|
|
301 |
|
|
404 |
|
|
391 |
|
|
Interest
income |
|
|
92 |
|
|
|
69 |
|
|
234 |
|
|
302 |
|
|
Interest
expense |
|
|
(35 |
) |
|
|
(42 |
) |
|
(35 |
) |
|
(46 |
) |
|
Loss before income taxes |
|
|
(13,972 |
) |
|
|
(20,397 |
) |
|
|
(39,704 |
) |
|
|
(50,840 |
) |
|
Income tax benefit
(expense) |
|
|
(28 |
) |
|
|
(1,872 |
) |
|
1 |
|
|
(1,254 |
) |
|
Net
loss |
|
|
(14,000 |
) |
|
|
(22,269 |
) |
|
|
(39,703 |
) |
|
|
(52,094 |
) |
|
Other
comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains on available-for-sale securities |
|
|
34 |
|
|
|
69 |
|
|
67 |
|
|
43 |
|
|
Other comprehensive
income, net of tax |
|
|
34 |
|
|
|
69 |
|
|
|
67 |
|
|
|
43 |
|
|
Comprehensive
loss |
|
$ |
(13,966 |
) |
|
$ |
(22,200 |
) |
|
$ |
(39,636 |
) |
|
$ |
(52,051 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
Loss per share |
|
|
2016 |
|
|
2017 |
2016 |
2017 |
Basic and Diluted |
|
|
$ |
(0.66 |
) |
|
$ |
(0.79 |
) |
|
$ |
(1.87 |
) |
|
$ |
(1.89 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
|
21,276,610 |
|
|
|
28,147,226 |
|
|
21,236,260 |
|
27,517,267 |
|
|
CONSOLIDATED STATEMENT OF CASH
FLOWS (unaudited) |
|
|
|
|
|
Nine Months EndedSeptember
30, |
|
|
(in thousands) |
|
|
|
2016 |
|
|
2017 |
|
|
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
|
|
|
$ |
(39,703 |
) |
|
$ |
(52,094 |
) |
|
|
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Non-cash
other expense, net |
|
|
|
(283 |
) |
|
(1,356 |
) |
|
|
Non-cash
interest income |
|
|
|
(102 |
) |
|
- |
|
|
|
Depreciation and amortization expense |
|
|
|
172 |
|
|
295 |
|
|
|
Stock-based compensation |
|
|
|
1,983 |
|
|
4,538 |
|
|
|
Deferred
income taxes |
|
|
|
(428 |
) |
|
1,410 |
|
|
|
Other,
net |
|
|
|
36 |
|
|
147 |
|
|
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
Changes
in long-term receivables |
|
|
|
(8 |
) |
|
- |
|
|
|
Changes
in other receivables and prepaid expenses |
|
|
|
(4,418 |
) |
|
1,554 |
|
|
|
Changes
in accounts payable |
|
|
|
(234 |
) |
|
2,632 |
|
|
|
Changes
in accrued expenses and other liabilities |
|
|
|
5,251 |
|
|
(2,419 |
) |
|
|
Changes
in other non-current liabilities |
|
|
|
13 |
|
|
27 |
|
|
|
Net cash
used in operating activities |
|
|
|
(37,721 |
) |
|
(45,266 |
) |
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
Purchases
of plant and equipment and intangible assets |
|
|
|
(456 |
) |
|
(1,141 |
) |
|
|
Purchases
of available-for-sale securities |
|
|
|
(14,000 |
) |
|
- |
|
|
|
Purchase
of term deposits |
|
|
|
(10 |
) |
|
- |
|
|
|
Proceeds
from sales of property, plant and equipment |
|
|
|
- |
|
|
2 |
|
|
|
Proceeds
from maturities of term deposits |
|
|
|
15,000 |
|
|
- |
|
|
|
Proceeds
from sales of available-for-sale securities |
|
|
|
25,000 |
|
|
50,500 |
|
|
|
Net cash
provided by investing activities |
|
|
|
25,534 |
|
|
49,361 |
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
Proceeds
from sale of ordinary shares |
|
|
|
- |
|
|
80,000 |
|
|
|
Proceeds
from long-term debt |
|
|
|
- |
|
|
228 |
|
|
|
Proceeds
from exercise of stock options |
|
|
|
243 |
|
|
83 |
|
|
|
Equity
offering costs |
|
|
|
- |
|
|
(6,382 |
) |
|
|
Net cash
provided by financing activities |
|
|
|
243 |
|
|
73,929 |
|
|
|
|
|
|
|
|
|
|
|
|
Effects of foreign
currency translation on cash and cash equivalents |
|
|
|
282 |
|
|
1,356 |
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
|
|
(11,662 |
) |
|
79,380 |
|
|
|
Cash and cash
equivalents at beginning of period |
|
|
|
36,446 |
|
|
32,778 |
|
|
|
Cash and cash
equivalents at end of period |
|
|
|
|
$ |
24,784 |
|
|
$ |
112,158 |
|
|
|
|
|
|
|
|
|
|
|
|
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