JERUSALEM, Nov. 15, 2017 /PRNewswire/ -- Intec Pharma LTD
(NASDAQ: NTEC) (TASE: NTEC) today announced its third quarter 2017
financial results and provided a corporate update.
"The third quarter was truly transformational for Intec
Pharma. We advanced our clinical development programs and are
continuing to move forward with our pivotal Phase 3 trial in
Parkinson's Disease. Additionally, we enhanced our organizational
capabilities to fully develop and commercialize the Accordion Pill,
taking us another step closer to our goal of becoming a global drug
delivery company. We made significant additions in Medical Affairs,
Business Development and to our senior leadership team," said
Jeffrey Meckler, Chief Executive
Officer of Intec Pharma. "Finally, we successfully completed a
public equity offering to provide additional funding for our
clinical program in Parkinson's Disease, on-going operations and
product development. We are well-positioned to advance our exciting
proprietary drug delivery platform into new areas and continue to
build a world-class organization."
Recent Corporate Highlights
Phase 3 ACCORDANCE Clinical Trial
The pivotal Phase 3 clinical trial assessing the safety and
efficacy of the Accordion Pill Carbidopa/Levodopa combination in
Parkinson's Disease continues to enroll and randomize
patients. The Company is expanding planned enrollment to 420
patients to account for a higher than expected attrition rate
during the titration period that precedes patient randomization.
The attrition to date is largely due to patient withdrawals related
to endoscopy procedures performed on the initial 100 patients, as
well as withdrawals occurring during the open-label Sinemet®
titration period that precedes exposure to the Accordion pill.
Additionally, the Company has undertaken measures to optimize
study activities, including enhancing patient selection, providing
better site engagement to boost the rate of enrollment, and
eliminate selected clinical sites with low enrollment. Given
the increased patient target, the trial is expected to now complete
enrollment in the third quarter of 2018.
Phase 1 Accordion Pill – CBD/THC
Announced positive results from its Phase 1 clinical trial of
AP-CBD/THC, the Company's Accordion Pill platform technology with
cannabidiol (CBD) and tetrahydrocannabinol (THC), the two primary
cannabinoids contained in Cannabis sativa. The trial
demonstrated the safety and efficacy of Accordion Pill technology.
The single-center, single-dose, randomized, three-way crossover
study compared the pharmacokinetics, safety and tolerability of two
formulations of Accordion Pill CBD/THC with Sativex in 21 normal
healthy volunteers. The study results showed that patients in the
Accordion Pill CBD/THC arm demonstrated significant improvements in
exposure to CBD (290% to 330%) and THC (25% to 50%) compared with
Sativex. The median time to peak concentration was 2-3 times
longer than Sativex and absorption was significantly higher.
Additionally, the formation of THC metabolites was meaningfully
reduced, and the drug was found to be safe and well-tolerated with
no serious adverse events reported.
Following the Phase 1 clinical trial, the Company evaluated the
entire pharmacokinetic (PK) dataset and decided to re-design the
Accordion Pill for CBD/THC to improve the overall
performance. A Phase 1 PK study of the revised AP CBD/THC is
planned and will be initiated in the near future.
Manufacturing
Announced the Company has contracted for a commercial-scale
Accordion Pill Manufacturing system, which is expected to be
completed by third quarter 2018. Additionally, the Company is
evaluating commercial manufacturing organizations for the
commercial-scale production of AP-CD/LD capsules and expects to
engage a partner at the appropriate time.
Clinical Affairs and Business Development Teams
Created a new U.S. Medical Affairs team to oversee clinical
trial operations, including U.S. site engagement and enrollment
rates. The Medical Affairs team is comprised of four senior
executives located in the U.S. with decades of experience in
medical affairs at biotechnology and pharmaceutical companies,
Expanded its Clinical and Regulatory teams in Israel with additional hires to monitor and
oversee clinical sites in Europe
and Israel.
Created a U.S.-based Business Development team to identifying
additional new opportunities and partnerships for the Accordion
Pill platform with both pipeline products and with approved
pharmaceuticals. The Business Development team will be
located in the U.S. and Israel.
Financing and Corporate Operations
Appointed Jeffrey A. Meckler as
Chief Executive Officer. Mr. Meckler joined Intec's Board of
Directors in April 2017 before being
named CEO. He has more than 25 years of life sciences
executive experience, including Chief Executive Officer of several
biopharma companies and more than 17 years at Pfizer, where he held
leadership positions in corporate strategic planning, acquisitions
and business development, market research, manufacturing systems
and sales operations analysis.
Named Nadav Navon, Ph.D., as
Chief Operating Officer. Dr. Navon has served as Executive Vice
President of Research & Development and Operations
since March 2015 and has been with Intec Pharma
since March 2006.
Appointed Walt Linscott to the position of Chief
Administrative Officer. Mr. Linscott held senior level
executive positions at Cocrystal Pharma, Carestream, and Solvay
Pharmaceuticals. In addition to his years of direct industry
experience, he was a partner in an international law firm where he
served as Partner in Charge and Chair of the firm's Life Science
Practice Group.
Announced Anthony Maddaluna,
former Executive Vice President and President of Pfizer Global
Supply, will seek election to the Board of Directors at the
upcoming Annual General Meeting.
Completed a $57.5 million primary
equity offering of approximately 12.2 million ordinary shares at a
public offering price of $4.70 per
ordinary share.
Opened a U.S. office for Administration, Business Development
and U.S. Medical Affairs.
Financial Results for the nine months ended September 30, 2017
The Company's research and development expenses, net, for the
nine-month period ended September 30,
2017 amounted to approximately $15.4
million, an increase of $7.4
million, or approximately 93%, compared to approximately
$8.0 million in the comparable period
in the preceding year. The increase was primarily due to increased
activity in the Company's Phase III clinical trial for AP-CD/LD,
payroll and related expenses and a decrease in the Israeli National
Authority for Technological Innovation's, or NATI, participation in
research and development expenses from $3.1
million in 2016 to $0 in 2017
as the Company decided not to accept NATI grant given its
conditions.
The Company's general and administrative expenses for the
nine-month period ended September 30,
2017 amounted to approximately $3.6
million, an increase of $1.3
million, or approximately 57%, compared to approximately
$2.3 million in the comparable period
in the preceding year. The increase was primarily due to the
increases in share-based compensation to employees, payroll and
related expenses and professional services.
Net loss attributable to common stockholders for nine-month
period ended September 30, 2017 was
$18.9 million, compared with
$9.7 million in the same period in
2016.
Net loss per share attributed to common stockholders for the
nine-month period ended September 30,
2017, was ($1.27), compared
with ($0.85) in the same period of
2016.
At September 30, 2017, the Company
had cash and cash equivalents and financial assets at fair value
through profit or loss of approximately $64.7 million.
About Intec Pharma Ltd.
Intec Pharma is a clinical-stage biopharmaceutical company
focused on developing drugs based on its proprietary Accordion Pill
platform technology. The Company's Accordion Pill is an oral drug
delivery system that is designed to improve the efficacy and safety
of existing drugs and drugs in development by utilizing an
efficient gastric retention and specific release mechanism. The
Company's product pipeline includes two product candidates in
clinical trial stages: Accordion Pill Carbidopa/Levodopa, or
AP-CD/LD, which is being developed for the treatment of Parkinson's
disease symptoms in advanced Parkinson's disease patients, and
AP-CBD/THC, an Accordion Pill with the two primary cannabinoids
contained in Cannabis sativa, cannabidiol (CBD) and
tetrahydrocannabinol (THC), which is being developed for various
indications including low back neuropathic pain and
fibromyalgia.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements about the
Company's expectations, beliefs and intentions. Forward-looking
statements can be identified by the use of forward-looking words
such as "believe", "expect", "intend", "plan", "may", "should",
"could", "might", "seek", "target", "will", "project", "forecast",
"continue" or "anticipate" or their negatives or variations of
these words or other comparable words or by the fact that these
statements do not relate strictly to historical matters. These
forward-looking statements are based on assumptions and assessments
made in light of management's experience and perception of
historical trends, current conditions, expected future developments
and other factors believed to be appropriate. Forward-looking
statements in this press release are made as of the date of this
press release, and the company undertakes no duty to update or
revise any such statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties, many of which are outside of the company's control.
Important factors that could cause actual results, developments and
business decisions to differ materially from forward-looking
statements are described in the sections titled "Risk Factors" in
the company's filings with the Securities and Exchange Commission,
and include the following: the company's ability to develop and
commercialize its product candidates and obtain additional
financing necessary therefor; the length, cost and uncertain
results of the company's clinical trials; including uncertainty
regarding the Company's ability to enroll the required number of
patients therein; the potential of adverse side effects, other
safety risks, or legal prohibitions on the use of certain products
in certain jurisdictions that could preclude the approval of the
company's drug candidates; the availability of reimbursement from
government authorities and health insurance companies for the
company's products; the impact of product liability lawsuits; and
the influence of extensive and costly government regulation.
INTEC PHARMA
LTD.
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
|
(Unaudited)
|
|
|
December 31,
2016
|
September
30,
2017
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
A s s e t
s
|
|
|
CURRENT
ASSETS:
|
|
|
Cash and cash
equivalents
|
16,376
|
62,977
|
Financial assets at
fair value through profit or loss
|
1,852
|
1,766
|
Restricted bank
deposits
|
62
|
68
|
Other
receivables
|
2,384
|
1,333
|
|
20,674
|
66,144
|
NON-CURRENT ASSETS
-
|
|
|
Property and
equipment
|
4,047
|
5,902
|
TOTAL
ASSETS
|
24,721
|
72,046
|
|
|
|
Liabilities and
equity
|
|
|
CURRENT
LIABILITIES -
|
|
|
Accounts payable and
accruals:
|
|
|
Trade
|
1,152
|
833
|
Other
|
768
|
2,490
|
|
1,920
|
3,323
|
NON-CURRENT
LIABILITIES -
|
|
|
Derivative financial
instruments
|
97
|
-
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
TOTAL
LIABILITIES
|
2,017
|
3,323
|
|
|
|
EQUITY:
|
|
|
Ordinary
shares
|
727
|
727
|
Share
premium
|
84,980
|
148,942
|
Currency translation
differences
|
(378)
|
(378)
|
Accumulated
deficit
|
(62,625)
|
(80,568)
|
TOTAL
EQUITY
|
22,704
|
68,723
|
TOTAL LIABILITIES
AND EQUITY
|
24,721
|
72,046
|
INTEC PHARMA
LTD.
|
CONDENSED
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE LOSS
|
(Unaudited)
|
|
|
Three months
ended
September
30
|
Nine months
ended
September
30
|
|
2016
|
2017
|
2016
|
2017
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
RESEARCH AND
DEVELOPMENT EXPENSES
|
(3,510)
|
(5,888)
|
(11,174)
|
(15,426)
|
LESS -
PARTICIPATION IN RESEARCH AND DEVELOPMENT EXPENSES
|
928
|
-
|
3,169
|
-
|
RESEARCH AND
DEVELOPMENT EXPENSES, net
|
(2,582)
|
(5,888)
|
(8,005)
|
(15,426)
|
GENERAL AND
ADMINISTRATIVE EXPENSES
|
(751)
|
(1,480)
|
(2,266)
|
(3,566)
|
OTHER GAINS
(LOSSES), net
|
49
|
(5)
|
79
|
166
|
OPERATING
LOSS
|
(3,284)
|
(7,373)
|
(10,192)
|
(18,826)
|
FINANCIAL
INCOME
|
103
|
29
|
492
|
209
|
FINANCIAL
EXPENSES
|
(93)
|
(308)
|
(18)
|
(240)
|
FINANCIAL INCOME
(EXPENSES), net
|
10
|
(279)
|
474
|
(31)
|
LOSS AND
COMPREHENSIVE LOSS
|
(3,274)
|
(7,652)
|
(9,718)
|
(18,857)
|
|
$
|
BASIC AND DILUTED
LOSS PER ORDINARY SHARE
|
(0.29)
|
(0.40)
|
(0.85)
|
(1.27)
|
INTEC PHARMA
LTD.
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
|
(Unaudited)
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
Number of
shares
|
Issued
and
paid-up
share
capital
|
Share
premium
|
Currency
translation differences
|
Accumulated
deficit
|
Total
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
BALANCE AT JANUARY
1, 2016
|
11,448,191
|
727
|
84,980
|
(378)
|
(49,799)
|
35,530
|
CHANGES IN THE
NINE MONTH PERIOD ENDED SEPTEMBER 30, 2016:
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
|
|
266
|
266
|
Comprehensive
loss
|
|
|
|
|
(9,718)
|
(9,718)
|
BALANCE AT
SEPTEMBER 30, 2016
|
11,448,191
|
727
|
84,980
|
(378)
|
(59,251)
|
26,078
|
BALANCE AT JANUARY
1, 2017
|
11,448,191
|
727
|
84,980
|
(378)
|
(62,625)
|
22,704
|
|
|
CHANGES IN THE
NINE MONTH PERIOD ENDED SEPTEMBER 30, 2017:
|
|
|
|
|
|
|
|
Proceeds of issuance
shares, net of issuance costs
|
2,289,638
|
-
|
9,525
|
|
|
9,525
|
|
Proceeds from issuance
of shares through public offering, net of issuance costs
|
12,224,500
|
-
|
53,606
|
|
|
53,606
|
|
Exercise of warrants
as part of an investment agreement
|
102,058
|
-
|
812
|
|
|
812
|
|
Share-based
compensation
|
|
|
|
|
914
|
914
|
|
Exercise of options by
employees and service providers
|
5,064
|
-
|
19
|
|
|
19
|
|
Comprehensive
loss
|
|
|
|
|
(18,857)
|
(18,857)
|
|
BALANCE AT
SEPTEMBER 30, 2017
|
26,069,451
|
727
|
148,942
|
(378)
|
(80,568)
|
68,723
|
|
|
|
|
|
|
|
|
INTEC PHARMA
LTD.
|
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
Nine months
ended
September
30
|
|
|
2016
|
2017
|
|
|
U.S. dollars
in thousands
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
Comprehensive
loss
|
(9,718)
|
(18,857)
|
Adjustments to
reconcile loss and comprehensive loss to net cash used in operating
activities (see appendix A)
|
96
|
3,897
|
Net cash used in
operating activities
|
(9,622)
|
(14,960)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
Purchase of property
and equipment
|
(247)
|
(2,447)
|
Proceeds from disposal
of financial assets at fair value through
profit or loss,
net
|
189
|
254
|
Proceeds from sale of
property and equipment
|
-
|
7
|
Net cash used in
investing activities
|
(58)
|
(2,186)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
Issuance of shares,
net of issuance costs
|
-
|
9,525
|
Issuance of shares
through a public offering, net of issuance costs
|
-
|
53,606
|
Exercise of warrants
as part of an investment agreement
|
-
|
531
|
Exercise of options by
employees and service providers
|
-
|
19
|
Net cash provided by
financing activities
|
-
|
63,681
|
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
(9,680)
|
46,535
|
CASH AND CASH
EQUIVALENTS - BEGINNING OF PERIOD
|
23,649
|
16,376
|
EXCHANGE
DIFFERENCES ON CASH AND CASH EQUIVALENTS
|
133
|
66
|
CASH AND CASH
EQUIVALENTS - END OF PERIOD
|
14,102
|
62,977
|
INTEC PHARMA
LTD.
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Nine months
ended
September
30
|
|
|
2016
|
2017
|
|
|
U.S. dollars
in thousands
|
|
|
|
|
|
APPENDIX
A:
|
Adjustments to
reconcile loss and comprehensive loss to net cash used in
operating activities:
|
|
|
Income and expenses
not involving cash flows:
|
|
|
Depreciation
|
529
|
613
|
Changes in the fair
value of derivative financial instruments
|
(129)
|
184
|
Exchange differences
on cash and cash equivalents
|
(133)
|
(66)
|
Exchange differences
on restricted deposits
|
-
|
(6)
|
Gains on financial
assets at fair value through profit or loss
|
(79)
|
(168)
|
Loss on sale of
property and equipment
|
-
|
2
|
Share-based
compensation to employees and service providers
|
266
|
914
|
|
454
|
1,473
|
Changes in operating
asset and liability items:
|
|
|
Decrease (increase) in
other receivables
|
(798)
|
1,051
|
Increase in accounts
payable and accruals
|
440
|
1,373
|
|
(358)
|
2,424
|
|
96
|
3,897
|
APPENDIX
B:
|
|
|
Information regarding
investment and financing activities
not
involving cash flows:
|
|
|
Liability with respect
to property purchase
|
|
30
|
Settlement of
liability in respect to derivative financial instrument to
equity
|
|
281
|
Supplementary
information to the statement of cash flows -
|
|
|
Interest
received
|
127
|
99
|
Contact:
Bob Yedid
LifeSci Advisors
(646) 597-6989
bob@iifesciadvisors.com
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SOURCE Intec Pharma Ltd.