Aquinox Pharmaceuticals Announces Third Quarter 2018 Financial Results
November 07 2018 - 9:15AM
Aquinox Pharmaceuticals, Inc. ("Aquinox") (NASDAQ:AQXP), a
pharmaceutical company discovering and developing novel drug
candidates to treat inflammation, inflammatory pain, and blood
cancers, today provided a corporate update and reported financial
results for the third quarter ending September 30, 2018.
“We ended the third quarter with $86.7 million
in cash and cash equivalents and have taken additional steps to
reduce expenditures, including further reductions planned in the
fourth quarter, to optimize our cash reserves while we evaluate
strategic alternatives,” said David Main, President & CEO of
Aquinox.
Recent Business Updates
Company Restructuring. In July
2018, Aquinox announced a restructuring plan to reduce operating
costs and better align its workforce with the needs of its
business. On November 6, 2018, Aquinox’s Board of Directors
approved further restructuring to reduce operating costs. Aquinox’s
headcount for 2019 will be reduced to eight FTE’s with all R&D
activities suspended and no material R&D spending planned while
strategic alternatives are being considered.
Summary of Financial
Results
Cash Position. Cash and cash
equivalents totaled $86.7 million as of September 30,
2018, compared to cash, cash equivalents and short-term investments
of $108.1 million as of December 31, 2017. The
decrease was primarily the result of expenditures related to the
LEADERSHIP 301 clinical trial in IC/BPS and costs associated with
restructuring activities, partly off-set by the $25 million payment
from Astellas in relation to the exclusive licensing agreement.
R&D Expenses. Research and
development expenses for the third quarter of 2018 increased to
$10.7 million from $8.5 million in the third quarter of 2017. This
increase was primarily driven by costs associated with
restructuring activities, including terminating our clinical trials
of rosiptor and related contracts. Aquinox expects its research and
development expenses to decline over the remainder of 2018 and into
2019 as it completes the closing activities related to the rosiptor
clinical trials.
G&A Expenses. General and
administrative expenses for the third quarter of 2018 increased to
$4.5 million from $3.6 million in the third quarter of 2017. This
increase was primarily driven by restructuring costs.
Net Loss. Net loss for the
third quarter of 2018 was $15.0 million compared to a net loss of
$11.8 million in the third quarter of 2017. This increase was
primarily driven by costs associated with restructuring activities,
including terminating our clinical trials of rosiptor and related
contracts.
About Aquinox Pharmaceuticals,
Inc.Aquinox Pharmaceuticals, Inc. is a pharmaceutical
company discovering and developing novel therapeutics for
conditions marked by inflammation, inflammatory pain, and blood
cancers. For more information, please visit www.aqxpharma.com.
Cautionary Note on Forward-Looking
StatementsCertain of the statements made in this press
release are forward looking, including those relating to evaluation
of our pipeline and strategic options. These statements are subject
to risks and uncertainties that could cause actual results and
events to differ materially from those anticipated, including, but
not limited to, risks and uncertainties related to: clinical drug
development is a lengthy and expensive process with an uncertain
outcome; our ability to identify or acquire additional clinical
candidates, our ability to obtain and maintain regulatory approval
for any future product candidates and the potential safety,
efficacy or clinical utility of or any future product candidates.
Actual results or developments may differ materially from those
projected or implied in these forward-looking statements. More
information about the risks and uncertainties faced by Aquinox is
contained in the company’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2018 filed with
the Securities and Exchange Commission. Aquinox disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Contact Info:
Kamran Alam Vice President,
Finance & CFO Aquinox Pharmaceuticals, Inc.
604.629.9223ir@aqxpharma.com
|
AQUINOX PHARMACEUTICALS, INC. |
|
Condensed consolidated balance
sheets |
(Unaudited) |
(In thousands of U.S. dollars) |
|
|
|
SEPTEMBER
30,2018 |
|
DECEMBER 31,2017 |
|
|
|
|
Assets |
|
|
|
Cash, cash equivalents
and short-term investments |
$ |
86,731 |
|
|
$ |
108,085 |
|
Other
current assets |
|
562 |
|
|
|
740 |
|
Other
long-term assets |
|
521 |
|
|
|
1,504 |
|
Total assets |
$ |
87,814 |
|
|
$ |
110,329 |
|
|
|
|
|
Liabilities |
|
|
|
Current
liabilities |
$ |
10,749 |
|
|
$ |
10,956 |
|
Non-current liabilities |
|
343 |
|
|
|
486 |
|
Total liabilities |
|
11,092 |
|
|
|
11,442 |
|
Stockholders’
equity |
|
76,722 |
|
|
|
98,887 |
|
Total liabilities and
stockholders' equity |
$ |
87,814 |
|
|
$ |
110,329 |
|
|
AQUINOX PHARMACEUTICALS, INC. |
|
Condensed consolidated statements of
operations |
(Unaudited) |
(In thousands of U.S. dollars, except per share and
share amounts) |
|
|
|
THREE MONTHS ENDEDSEPTEMBER 30, |
|
NINE MONTHS ENDEDSEPTEMBER 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue |
$ |
- |
|
|
$ |
- |
|
|
$ |
25,000 |
|
|
$ |
- |
|
Operating
expenses |
|
|
|
|
|
|
|
Research
and development |
|
10,713 |
|
|
|
8,456 |
|
|
|
39,217 |
|
|
|
24,708 |
|
General
and administrative |
|
4,484 |
|
|
|
3,614 |
|
|
|
13,107 |
|
|
|
9,879 |
|
Total operating
expenses |
|
15,197 |
|
|
|
12,070 |
|
|
|
52,324 |
|
|
|
34,587 |
|
Loss from
operations |
|
(15,197 |
) |
|
|
(12,070 |
) |
|
|
(27,324 |
) |
|
|
(34,587 |
) |
Other income, net |
|
204 |
|
|
|
237 |
|
|
|
626 |
|
|
|
672 |
|
Net
loss |
$ |
(14,993 |
) |
|
$ |
(11,833 |
) |
|
$ |
(26,698 |
) |
|
$ |
(33,915 |
) |
Net loss per common
stock – basic and diluted |
$ |
(0.64 |
) |
|
$ |
(0.50 |
) |
|
$ |
(1.14 |
) |
|
$ |
(1.45 |
) |
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of common stock outstanding |
|
23,537,368 |
|
|
|
23,464,785 |
|
|
|
23,513,489 |
|
|
|
23,444,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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