REDWOOD CITY, Calif.,
March 8, 2018 /PRNewswire/ -- AcelRx
Pharmaceuticals, Inc. (Nasdaq: ACRX), (AcelRx), a specialty
pharmaceutical company focused on innovative therapies for use in
medically supervised settings today reported fourth quarter 2017
financial results.
"As disclosed earlier today, we had a constructive meeting with
the FDA regarding DSUVIA at the end of January 2018. In
summary, based on the meeting outcome and official meeting minutes,
we plan to resubmit our DSUVIA NDA in the second quarter of this
year. The AcelRx team, including our consultants and our
partners at the Department of Defense, did an exceptional job
collaborating to reach consensus on a path forward to
resubmission," said Vince Angotti,
Chief Executive Officer of AcelRx. "We also continued to
demonstrate financial discipline through control of our spending,
and ended the year with over $60
million in cash and investments, which provides sufficient
liquidity heading into an expected PDUFA date later in the year,"
continued Angotti.
Recent Highlights
- The Type A FDA meeting on January 26,
2018 focused on addressing the two primary points in the
October 2017 Complete Response Letter
(CRL) regarding the DSUVIA New Drug Application (NDA). Official
meeting minutes from FDA indicate proposals discussed in the Type A
meeting were reasonable, which provides a path to resubmit the
DSUVIA NDA in the second quarter of 2018.
- Completed preparation of Zalviso® NDA resubmission inclusive of
positive IAP 312 study results on device functionality and tablet
dispensing errors. However, AcelRx intends to hold resubmission
until the second half of 2018 to focus on DSUVIA.
Financial Information
- December 31, 2017 cash and
short-term investment balance of $60.5
million.
- Revenues of $8.0 million for the
full year 2017, consisting of $7.1
million from the Grunenthal collaboration agreement, and
$0.9 million for work performed under
the Department of Defense (DoD) contract for DSUVIA. In contrast,
revenues from those two agreements for the full year 2016 were
$6.4 million and $10.9 million, respectively. The year-over-year
decrease in DoD contract revenue reflects our completion in 2016 of
the Phase 3 clinical program for DSUVIA, which was reimbursed under
the contract.
- R&D and G&A expenses for the year ended December 31, 2017 totaled $36.0 million, and excluding stock-based
compensation was $32.0 million,
compared to $37.0 million, and
excluding stock-based compensation, $32.8
million, for the year ended December
31, 2016. This decrease is due to lower DSUVIA-related
expenses resulting from the completion of the Phase 3 clinical
program in 2016, offset by an increase in Zalviso-related expenses
attributed to the Phase 3 clinical program completed in 2017, and a
small increase in pre-commercialization expenses in anticipation of
potential FDA approval of DSUVIA. For the quarter ended
December 31, 2017, R&D and
G&A expenses totaled $7.6
million, and excluding stock-based compensation was
$6.6 million, declining $2.8 million compared to the fourth quarter of
2016. The decrease was mainly due to lower DSUVIA-related expenses,
which included the filing fee for the DSUVIA NDA during the fourth
quarter of 2016. See the "Reconciliation of Non-GAAP Financial
Measures" table below for a reconciliation of the non-GAAP
operating expenses described above to their related GAAP
measures.
- For full year 2017, net loss was $51.5
million, or $1.10 basic and
diluted net loss per share, compared to $43.2 million, or $0.95 basic and diluted net loss per share, for
full year 2016. Net loss for the fourth quarter of 2017 was
$9.9 million, or $0.20 basic and diluted net loss per share,
compared to $9.7 million, or
$0.21 basic and diluted net loss per
share, for the fourth quarter of 2016.
- Net cash usage during the fourth quarter 2017 of $7.5 million included $4.0
million of debt service, inclusive of the payment of a
$1.7 million deferred fee.
2018 Guidance and Expected Upcoming Milestones
AcelRx
expects quarterly net cash usage in 2018 to remain in the
$10-11 million range before
initiating pre-launch commercialization investments, which are
planned to ramp after obtaining FDA approval of DSUVIA. This
upcoming year has many key milestones for AcelRx, including:
- Anticipated resubmission of NDA for DSUVIA in Q2 2018.
- Expected opinion on the Marketing Authorization Application
(MAA) for DZUVEO from the Committee for Medicinal Products for
Human Use (CHMP) in H1 2018.
- Expected FDA advisory committee meeting for DSUVIA in Q3
2018.
- Anticipated PDUFA date for DSUVIA in Q4 2018.
- Anticipated resubmission of NDA for Zalviso in H2 2018.
Conference Call and Webcast Information
As previously
announced, AcelRx will conduct an investment-community conference
call today, March 8, 2018 at
4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these
financial results and provide other corporate updates. Investors
who wish to participate in the conference call may do so by dialing
(866) 361-2335 for domestic callers, (855) 669-9657 for Canadian
callers or (412) 902-4204 for international callers. Those
interested in listening to a webcast of the conference call live
via the Internet may do so by visiting the Investors page of the
company's website at www.acelrx.com and clicking on the webcast
link on the Investors home page. The webcast will be archived on
the AcelRx website for 90 days following the call.
About AcelRx Pharmaceuticals, Inc.
AcelRx
Pharmaceuticals, Inc. is a specialty pharmaceutical company focused
on the development and commercialization of innovative therapies
for use in medically supervised settings. AcelRx's
proprietary, non-invasive sublingual formulation technology
delivers sufentanil with consistent pharmacokinetic profiles. The
company has two product candidates including DSUVIA™
(sufentanil sublingual tablet, 30 mcg), known as ARX-04 outside
the United States, with a proposed
indication for the treatment of moderate-to-severe acute pain in
medically supervised settings, and Zalviso® (sufentanil
sublingual tablet system, SST system, 15 mcg) being developed as an
innovatively designed patient-controlled analgesia (PCA) system for
reduction of moderate-to-severe acute pain in medically supervised
settings.
For additional information about AcelRx's clinical programs,
please visit www.acelrx.com.
Non-GAAP Financial Measures
To supplement AcelRx's
financial results and guidance presented in accordance with U.S.
generally accepted accounting principles (GAAP), the company uses
certain non-GAAP financial measures in this press release, in
particular, excluding stock-based compensation expense from its
operating expenses. The company believes that this non-GAAP
financial measure provides useful supplementary information to, and
facilitates additional analysis by, investors and analysts. In
particular, the company believes that this non-GAAP financial
measure, when considered together with the company's financial
information prepared in accordance with GAAP, can enhance
investors' and analysts' ability to meaningfully compare the
company's results from period to period and to its forward-looking
guidance. In addition, this type of non-GAAP financial measure is
regularly used by investors and analysts to model and track the
company's financial performance. AcelRx's management also regularly
uses this non-GAAP financial measure internally to understand,
manage and evaluate the company's business and to make operating
decisions. Non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
measures and should be read in conjunction with AcelRx's
consolidated financial statements prepared in accordance with GAAP.
The non-GAAP financial measures in this press release and the
accompanying tables have limits in their usefulness to
investors and may be calculated differently from, and therefore may
not be directly comparable to, similarly titled measures used by
other companies.
Forward-Looking Statements
This press release
contains forward-looking statements, including, but not limited to,
statements related to the process and timing of anticipated future
development of AcelRx's product candidates, DSUVIA™
(sufentanil sublingual tablet, 30 mcg), known as DZUVEO outside
the United States, and
Zalviso® (sufentanil sublingual tablet system),
including the timing and review of the NDA resubmission for DSUVIA
based on the outcome of the Type A FDA meeting; the timing and
results of the MAA opinion on DSUVEO; the anticipated timing of any
FDA advisory committee meeting or PDUFA date regarding DSUVIA
following the DSUVIA NDA resubmission; the timing of the planned
resubmission of the Zalviso NDA; anticipated quarterly net cash
usage for 2018 prior to any ramp up in pre-launch commercialization
expenditures in anticipation of an FDA approval of the DSUVIA NDA;
and the company's ability to continue its cash management plan and
maintain a solid liquidity position. These forward-looking
statements are based on AcelRx's current expectations and
inherently involve significant risks and uncertainties. AcelRx's
actual results and timing of events could differ materially from
those anticipated in such forward-looking statements as a result of
these risks and uncertainties, which include, without limitation,
risks related to: any delays or inability to obtain and maintain
regulatory approval of its product candidates, including DSUVIA in
the United States, DZUVEO in
Europe and Zalviso in the United States; the possibility that the
FDA may dispute or interpret differently the results of the
company's planned Human Factors study to validate the effectiveness
of the changes in the Directions for Use, or the supplemental
information included in the planned resubmission of the NDA for
DSUVIA; EMA review of the DZUVEO MAA, and the possibility that EMA
may dispute or interpret differently clinical results obtained from
the ARX-04 Phase 2 and 3 studies; the possibility that the FDA may
dispute or interpret differently the results of the Zalviso
development program, including the results from the IAP312 clinical
trial; the accuracy of AcelRx's estimates regarding expenses,
capital requirements and the need for financing; and other risks
detailed in the "Risk Factors" and elsewhere in AcelRx's U.S.
Securities and Exchange Commission filings and reports, including
its Quarterly Report on Form 10-Q filed with the SEC on
November 9, 2017. AcelRx undertakes
no duty or obligation to update any forward-looking statements
contained in this release as a result of new information, future
events or changes in its expectations.
Selected Financial
Data
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
December
31
|
|
December
31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Statement of
Comprehensive Loss Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Collaboration
agreement revenue
|
$
699
|
|
$
1,771
|
|
$
7,143
|
|
$
6,440
|
Contract and other
revenue
|
41
|
|
4,664
|
|
852
|
|
10,917
|
Total
revenue
|
740
|
|
6,435
|
|
7,995
|
|
17,357
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of goods sold
(1)
|
962
|
|
3,161
|
|
10,659
|
|
12,315
|
Research and
development (1)
|
3,676
|
|
6,334
|
|
19,409
|
|
21,402
|
General and
administrative (1)
|
3,909
|
|
4,078
|
|
16,609
|
|
15,597
|
Total operating costs
and expenses
|
8,547
|
|
13,573
|
|
46,677
|
|
49,314
|
Loss from
operations
|
(7,807)
|
|
(7,138)
|
|
(38,682)
|
|
(31,957)
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Interest
expense
|
(720)
|
|
(701)
|
|
(3,316)
|
|
(2,770)
|
Interest income and
other income (expense), net(2)
|
725
|
|
618
|
|
510
|
|
918
|
Non-cash interest
expense on liability related to sale of future royalties
|
(2,786)
|
|
(2,461)
|
|
(10,721)
|
|
(9,382)
|
Total other
expense
|
(2,781)
|
|
(2,544)
|
|
(13,527)
|
|
(11,234)
|
Benefit (provision)
for income taxes
|
703
|
|
-
|
|
701
|
|
34
|
Net loss
|
$
(9,885)
|
|
$
(9,682)
|
|
$(51,508)
|
|
$(43,157)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share
|
$
(0.20)
|
|
$
(0.21)
|
|
$
(1.10)
|
|
$
(0.95)
|
|
|
|
|
|
|
|
|
Shares used in
computing basic and diluted net loss per common share
|
50,391
|
|
45,334
|
|
46,884
|
|
45,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes the following non-cash, stock-based compensation
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
$
80
|
|
$
77
|
|
$
324
|
|
$
302
|
Research and development
|
459
|
|
562
|
|
1,901
|
|
2,308
|
General and administrative
|
514
|
|
432
|
|
2,069
|
|
1,869
|
Total
|
$
1,053
|
|
$
1,071
|
|
$
4,294
|
|
$
4,479
|
|
|
|
|
|
|
|
|
(2) Interest
income and other income (expense) includes $0.6 million and $0.5
million in non-cash income for the three months ended December 31,
2017 and 2016, respectively, and $0.3 million and $0.6 million in
non-cash income for the twelve months ended December 31, 2017 and
2016, respectively, related to warrants issued in connection with a
private placement equity financing, completed in June 2012. These
warrants expired in November 2017.
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
Selected Balance
Sheet Data
|
|
|
|
|
|
|
|
Cash, cash
equivalents and investments
|
$
60,469
|
|
$
80,310
|
|
|
|
|
Total
assets
|
75,552
|
|
99,993
|
|
|
|
|
Total
liabilities
|
112,061
|
|
105,330
|
|
|
|
|
Total stockholders'
deficit
|
(36,509)
|
|
(5,337)
|
|
|
|
|
Reconciliation
of Non-GAAP Financial Measures
|
(Operating
Expenses less associated stock-based compensation
expense)
|
|
|
Three Months
Ended December 31,
|
Three Months
Ended September 30,
|
Twelve Months
Ended December 31,
|
|
2017
|
2016
|
2017
|
2017
|
2016
|
Operating expenses
(GAAP):
|
|
|
|
|
|
Research and
development
|
$
3,676
|
$
6,334
|
$
3,913
|
$
19,409
|
$
21,402
|
General and
administrative
|
3,909
|
4,078
|
4,406
|
16,609
|
15,597
|
Total operating
expenses
|
7,585
|
10,412
|
8,319
|
36,018
|
36,999
|
Less associated
stock-based compensation expense
|
973
|
994
|
938
|
3,970
|
4,177
|
Operating expenses
(non-GAAP)
|
$
6,612
|
$
9,418
|
$
7,381
|
$
32,048
|
$
32,822
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/acelrx-pharmaceuticals-reports-fourth-quarter-2017-financial-results-300611116.html
SOURCE AcelRx Pharmaceuticals, Inc.