LAVAL, QC, Feb. 21, 2018 /CNW/ - BELLUS Health Inc. (TSX:
BLU) ("BELLUS Health" or the "Company"), a biopharmaceutical
development company advancing novel therapeutics for conditions
with high unmet medical need, today reported its financial and
operating results for the year ended December 31, 2017. All
currency figures reported in this press release are in Canadian
dollars, unless otherwise specified.
2017 Highlights
- Entered into a license agreement with the NEOMED Institute
("NEOMED") for the exclusive worldwide rights to develop and
commercialize BLU-5937 - a selective antagonist of the P2X3
receptor, a clinically validated target for chronic cough - that
has the potential to be a best-in-class therapeutic for chronic
cough patients who do not respond to current therapies;
- Closed a $20 million equity
offering subscribed to in majority by institutional healthcare
investors and which also included the participation by members of
the senior management team and board of directors of the
Company;
- Announced that in a guinea pig cough model, BLU-5937 has shown
comparable efficacy to the current leading P2X3 antagonist in
development, Merck & Co's Gefapixant;
- Announced that in a rat taste model, BLU-5937 did not inhibit
taste, while, consistent with clinical trial data previously
presented by Merck & Co, Gefapixant led to significant taste
disturbance;
- Hosted a Key Opinion Leader ("KOL") event on chronic cough with
Dr. Jacky Smith. The archived
version of the webcast and presentation are available on the
Company's website at www.bellushealth.com;
- Announced that the U.S. Patent and Trademark Office issued a
patent that grants claims covering the composition of matter of the
Company's lead drug candidate, BLU-5937, until 2034. The Company
was granted a patent for similarly broad claims in China in July
2017;
- Sold its wholly-owned subsidiary, Thallion Pharmaceuticals Inc.
("Thallion"), to Taro Pharmaceuticals Inc. ("Taro") for total
consideration of $2.7 million;
- Sold its equity interest in FB Health S.p.A. ("FB Health") for
a potential total consideration of approximately $2.5 million;
- Concluded the quarter with cash, cash equivalents and
short-term investments totaling $23.9
million.
"2017 has been a very productive year for BELLUS Health,
beginning with the in-licensing of our new lead program BLU-5937,
that has the potential to be a best-in-class treatment for chronic
cough, and closing the year with a $20
million financing, a testament to the potential of the
program," said Roberto Bellini,
President and Chief Executive Officer of BELLUS Health. "The funds
obtained through the financing will support the momentum of
BLU-5937's development into clinical testing. We expect starting a
Phase 1 study in Q3 2018, with top line data expected by
year-end."
Equity Offering
On December 12, 2017, the Company
closed an equity offering, issuing a total of 52,631,580
common shares at a price of $0.38 per share for aggregate
gross proceeds of $20 million (the "Offering"). The Offering
was subscribed to in majority by institutional healthcare investors
and also included the participation by members of the senior
management team and board of directors of the Company.
In addition, 1,806,735 broker warrants exercisable for common
shares were issued to the agents of the Offering. Each broker
warrant entitles the agents to buy one common share at a price
of $0.38 per share for a period of 18 months from the closing
of the Offering.
BLU-5937 for Chronic Cough
On February 28, 2017, the Company
announced that it had obtained from NEOMED an exclusive worldwide
license to develop and commercialize BLU-5937, a potent, highly
selective, orally bioavailable small molecule antagonist of the
P2X3 receptor, a clinically validated target for chronic cough.
BLU-5937 has the potential to be a best-in-class therapeutic for
chronic cough patients who do not respond to current therapies.
On September 18, 2017, the Company
announced that BLU-5937 showed a significant reduction in cough and
no taste disturbance in two separate preclinical models. In a
guinea pig cough model, BLU-5937 showed comparable efficacy to the
current leading P2X3 antagonist in development, Merck & Co's
Gefapixant (also named AF-219 or MK-7264). In a rat taste model,
BLU-5937 did not inhibit taste, while, consistent with clinical
trial data previously presented by Merck & Co, Gefapixant led
to significant taste disturbance.
On April 24, 2017, the Company
announced that the U.S. Patent and Trademark Office issued a patent
which grants claims covering the composition of matter of BLU-5937,
with an expiration date of 2034. The Company was granted a patent
for similarly broad claims in China on July 10,
2017. Similar patent applications are currently pending in
Europe, Japan and other industrialized nations.
The Company is currently performing preclinical studies on
BLU-5937 to complete its package for submission of a Clinical Trial
Application ("CTA"), expected in the second quarter of 2018. The
Company plans to initiate a Phase 1 clinical study in the
third quarter of 2018.
Sale of Thallion
On March 16, 2017, the Company
sold its wholly-owned subsidiary Thallion to Taro, including all
the rights to the drug candidate ShigamabTM. Taro
acquired all issued and outstanding shares of Thallion for a total
consideration of $2.7 million,
consisting of a cash payment of $2.3
million on closing and a deferred payment of $0.4 million upon the completion of a
pre-established milestone event, which payment was received in
January 2018. In addition, BELLUS
Health will receive a portion of certain potential future
post-approval revenues related to the ShigamabTM
program.
Sale of Equity Interest in FB Health
On June 30, 2017, the Company sold
its equity interest in FB Health for a potential total
consideration of $2,536,000,
consisting of an upfront cash payment of $1,769,000 and a contingent revenue-based
milestone payment of up to $767,000
(€518,000), which will be determined one year from the closing of
the transaction.
Other Development Programs
Information on the Company's other partnered development
programs – KIACTA™ for Sarcoidosis, AMO-01 for Fragile X Syndrome
and ALZ-801 for APOE4 Homozygous Alzheimer's Disease – can be found
on the Company's website at www.bellushealth.com.
Summary of Financial Results
|
|
|
|
Year ended
December 31, 2017
|
Year ended
December 31, 2016
|
|
(in thousands of
dollars, except per share data)
|
Revenues
|
$
|
165
|
$
|
1,893
|
Research and
development expenses, net
|
|
(3,321)
|
|
(1,366)
|
General and
administrative expenses
|
|
(2,529)
|
|
(2,624)
|
Net finance income
(costs)
|
|
19
|
|
(116)
|
Realized gain on sale
of available-for-sale
|
|
|
|
|
|
investment in FB
Health
|
|
1,909
|
|
—
|
Gain on sale of
subsidiary
|
|
1,944
|
|
—
|
Deferred tax
expense
|
|
(61)
|
|
(15)
|
Net loss for the
year
|
|
(1,874)
|
|
(2,228)
|
Net loss attributable
to shareholders
|
|
(1,874)
|
|
(2,159)
|
Basic and diluted
loss per share
|
$
|
(0.03)
|
$
|
(0.04)
|
- Revenues amounted to $165,000 for
the year ended December 31, 2017,
compared to $1,893,000 for the
previous year. Revenues for 2016 included those related to
agreements with a partner for the now terminated development of a
drug candidate.
- Research and development expenses, net of research tax credits,
amounted to $3,321,000 for the year
ended December 31, 2017, compared to
$1,366,000 for the previous year. The
increase is attributable to expenses incurred in relation to the
development of BLU-5937, the Company's lead drug candidate for
chronic cough, for which an exclusive worldwide license to develop
and commercialize was entered into in February 2017.
- Realized gain on sale of available-for-sale investment in FB
Health amounted to $1,909,000 for the
year ended December 31, 2017 and is
related to the sale of the Company's equity interest in FB Health
in June 2017.
- Gain on sale of subsidiary amounted to $1,944,000 for the year ended December 31, 2017 and is related to the sale of
Thallion in March 2017.
As at December 31, 2017, the Company had available cash,
cash equivalents and short-term investments totalling $23,888,000, compared to $6,834,000 as at December 31, 2016.
The Company's full audited consolidated financial statements and
accompanying management's discussion and analysis for the year
ended December 31, 2017 will be
available shortly on SEDAR at www.sedar.com and on the Company's
website at www.bellushealth.com.
About BELLUS Health (www.bellushealth.com)
BELLUS Health is a biopharmaceutical development company
advancing novel therapeutics for conditions with high unmet medical
need. Its pipeline of projects includes the Company's lead drug
candidate BLU-5937 for chronic cough and several other partnered
clinical-stage drug development programs. BLU-5937, a selective
P2X3 antagonist, has the potential to be a best-in-class
therapeutic for chronic cough patients who do not respond to
current therapies.
Chronic cough is a cough that lasts more than eight weeks and is
associated with significant adverse social, psychosocial and
physical effects on quality of life. A recent commercial assessment
performed by Torreya Insights on behalf of the Company concluded
that, in the United States alone,
more than 26 million adults have chronic cough and more than
2.6 million of these patients suffer from refractory chronic cough
lasting for more than a year.
Forward-Looking Statements
Certain statements contained in this news release, other than
statements of fact that are independently verifiable at the date
hereof, may constitute "forward-looking statements" within the
meaning of Canadian securities legislation and regulations. Such
statements, based as they are on the current expectations of
management, inherently involve numerous important risks,
uncertainties and assumptions, known and unknown, many of which are
beyond BELLUS Health Inc.'s control. Such risks factors include but
are not limited to: the ability to expand and develop its project
pipeline, the ability to obtain financing, the impact of general
economic conditions, general conditions in the pharmaceutical
industry, changes in the regulatory environment in the
jurisdictions in which BELLUS Health Inc. does business, stock
market volatility, fluctuations in costs, changes to the
competitive environment due to consolidation, achievement of
forecasted burn rate, potential payments/outcomes in relation to
indemnity agreements and contingent value rights, achievement of
forecasted pre-clinical and clinical trial milestones and that
actual results may vary once the final and quality-controlled
verification of data and analyses has been completed. In addition,
the length of BELLUS Health Inc.'s drug candidates' development
process, their market size and commercial value, as well as the
sharing of proceeds between BELLUS Health Inc. and its potential
partners from potential future revenues, if any, are dependent upon
a number of factors. Consequently, actual future results and events
may differ materially from the anticipated results and events
expressed in the forward-looking statements. BELLUS Health Inc.
believes that expectations represented by forward-looking
statements are reasonable, yet there can be no assurance that such
expectations will prove to be correct. The reader should not place
undue reliance, if any, on any forward-looking statements included
in this news release. These forward-looking statements speak only
as of the date made, and BELLUS Health Inc. is under no obligation
and disavows any intention to update publicly or revise such
statements as a result of any new information, future event,
circumstances or otherwise, unless required by applicable
legislation or regulation. Please see BELLUS Health Inc.'s public
filings with the Canadian securities regulatory authorities,
including the Annual Information Form, for further risk factors
that might affect BELLUS Health Inc. and its business.
SOURCE BELLUS Health Inc.