- Recently announced a $5.0 million raise in a private placement
transaction led by a subsidiary of CBI Co., Ltd. (“CBI”), a member
of a leading investment group in South Korea focusing on assisting
scientific-based companies in South Korea and the United
States
Exicure, Inc. (NASDAQ: XCUR), an early-stage biotechnology
company focused on the development of next generation nucleic acid
therapies targeting RNA to address both genetic and non-genetic
neurological disorders and hair loss disorders, today reported
financial results for the quarter ended March 31, 2022 and provided
an update on its business strategy and corporate progress.
“Exicure is off to a promising start in 2022 as we have made
progress with our preclinical SCN9A program for the treatment of
pain with several potential therapeutic candidates identified and
we are conducting initial in vivo animal studies to support
candidate selection in 2023,” commented Matthias Schroff, Ph.D.,
Chief Executive Officer of Exicure. “We continue to advance our
partnered programs with Ipsen and AbbVie, and the recently
announced private placement investment led by CBI USA, Inc. (“CBI
USA”) is expected to provide us with additional resources as we
continue our mission to pursue treatments for patients with unmet
medical needs,” concluded Dr. Schroff.
Corporate Progress
Recent highlights include:
- On May 10, 2022, Exicure announced a $5.0 million raise in a
private placement transaction priced at market premium
- Agreed to sell an aggregate of 26,021,011 shares of the
Company’s common stock to certain accredited investors in a private
placement in public equity (“PIPE”) financing at a purchase price
of $0.1937 per share, representing an approximately 45% premium to
the 10-day volume weighted-average share price from May 9,
2022.
- New investor CBI USA led the transaction; existing investor,
Abingworth LLP, also participated.
- Transaction is expected to close on or about May 19, 2022,
subject to the satisfaction of customary closing conditions.
- In connection with the PIPE, CBI USA received the right to
nominate a member to the Company’s board of directors (the
“Board”), effective as of the closing date. CBI USA will also have
the right to designate one individual to attend all meetings of the
Board in a nonvoting observer capacity.
- Net proceeds from the transaction expected to support the
Company’s advancement of its preclinical program, including the
development of its SCN9A product candidate, as well as other
working capital and general corporate purposes.
Corporate highlights for the first quarter of 2022 include:
- Repaid in full all outstanding indebtedness and other
obligations under the Company’s credit facility with MidCap,
effective March 15, 2022.
- Continued to advance the Company’s SCN9A preclinical discovery
program. Exicure anticipates results from initial in vivo animal
studies by year-end 2022, with the goal of therapeutic candidate
selection in the second half of 2023.
- Progressed work with partnered programs towards potential
pre-clinical milestones in 2023.
- Actively pursuing out-license opportunities for the Company’s
clinical asset, cavrotolimod.
- Continuing to pursue near-term partnering opportunities for
pain and other neuroscience programs.
First Quarter 2022 Financial Results
Cash Position: Cash, cash equivalents and short-term
investments were $27.6 million as of March 31, 2022, as compared to
$48.3 million as of December 31, 2021. The Company expects that its
cash and cash equivalents, together with the expected $5.0 million
gross proceeds from the PIPE transaction in May 2022, will enable
it to fund its current operations into the first quarter of
2023.
Revenue: Revenue was $2.6 million for the quarter ended
March 31, 2022, reflecting an increase of $1.6 million from revenue
of $1.0 million for the quarter ended March 31, 2021. The increase
in revenue of $1.6 million is mostly due to the recognition of
non-cash revenue of $2.1 million associated with the Company’s
collaboration with Ipsen Biopharm Limited, partially offset by a
decrease in revenue of $0.5 million associated with the Company’s
collaboration with AbbVie Inc.
Research and Development (R&D) Expense: Research and
development expenses were $7.1 million for the quarter ended March
31, 2022, as compared to $10.3 million for the quarter ended March
31, 2021. The decrease in R&D expense for the three months
ended March 31, 2022 of $3.1 million reflects a reduction in
employee headcount and fewer discovery, preclinical, and clinical
program activities resulting from the restructuring activities that
the Company announced in December 2021.
General and Administrative (G&A) Expense: General and
administrative expenses were $3.2 million for the quarter ended
March 31, 2022, as compared to $2.9 million for the quarter ended
March 31, 2021. The increase in G&A expense of $0.3 million for
the three months ended March 31, 2022 was mostly due to higher
legal costs and retention award expense for current employees,
partially offset by a decrease in recruiting costs, investor
relations costs, and stock-based compensation.
Net Loss: The Company had a net loss of $8.3 million for
the quarter ended March 31, 2022, as compared to a net loss of
$12.5 million for the quarter ended March 31, 2021. The decrease in
net loss was primarily driven by lower R&D expense and higher
non-cash revenue during the period.
Going Concern: Given the Company’s current cash position,
operating plans and forecasted negative cash flows from operating
activities over the next twelve months, management believes there
is substantial doubt regarding the Company’s ability to continue as
a going concern within one year after the date that its unaudited
condensed consolidated financial statements for the quarter ended
March 31, 2022 are issued. The Company will require substantial
additional financing to address the Company’s working capital and
other financing needs to pursue its business strategy.
About Exicure
Exicure, Inc. is an early-stage biotechnology company developing
nucleic acid therapies targeting ribonucleic acid against validated
targets to neurological disorders and hair loss. The team includes
a diverse scientific group with expertise in nucleic acid
chemistry, drug development and neuroscience. Headquartered in
Chicago, Illinois, the Company conducts its discovery and
development efforts in-house with a dedicated 30,000 square foot
facility, including rapid and automated high throughput nucleic
acid synthesis and screening. For further information, see
www.exicuretx.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements in this press release other than statements of
historical fact may be deemed forward looking including, but not
limited to: statements regarding the Company’s current business
plans and objectives; the timing, use of proceeds and closing of
the PIPE; the anticipated extension of cash runway due to the PIPE;
the substantial doubt about the Company’s ability to continue as a
going concern; the Company’s requirements for substantial
additional financing to address the Company’s working capital and
other financing needs; the Company’s anticipated cash runway; the
Company’s ability to continue to advance its strategic partnerships
and the potential achievement of any clinical trial milestones
pursuant to such license and collaboration agreements; the
continuation of pre-clinical discovery of potential therapeutic
candidates and the ability to develop, and possibly partner,
product candidates for the treatment of neurological conditions;
the timing and development of the Company’s preclinical pipeline
and achievement of expected near- and long-term milestones,
including timing of results from initial in vivo animal studies and
planned therapeutic candidate selection; the potential advantages
and clinical benefit of the Company’s SNA platform and advancement
of SCN9A preclinical discovery; the future prospects of the
Company, including of the outlicensing of its cavrotolimod program.
Words such as “plans,” “expects,” “will,” “anticipates,”
“continue,” “expand,” “advance,” “believes,” “ “target,” “may,” “
“intend,” “could,” “should,” and other words and terms of similar
meaning and expression are intended to identify forward-looking
statements, although not all forward-looking statements contain
such terms. Forward-looking statements are based on management’s
current beliefs and assumptions that are subject to risks and
uncertainties and are not guarantees of future performance. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors,
including, without limitation: market and other conditions; the
Company’s ability to adequately finance its business and seek
alternative sources of financing the risks that the ongoing
COVID-19 pandemic may disrupt the Company’s business and/or the
global healthcare system (including its supply chain) more severely
than it has to date or more severely than anticipated; unexpected
costs, charges or expenses that reduce the Company’s capital
resources; the unproven approach of the Company’s SNA platform; the
Company’s preclinical programs do not advance into clinical or
result in approved products on a timely or cost effective basis or
at all; the results of early clinical trials are not always being
predictive of future results; the cost, timing and results of
clinical trials; that many drug candidates do not become approved
drugs on a timely or cost effective basis or at all; the ability to
enroll patients in clinical trials; possible safety and efficacy
concerns; regulatory developments; the ability of the Company to
obtain or maintain its existing or future collaborations, licenses
or contractual relationships and/or collaborate successfully with
strategic partners; regulatory developments; exposure to
litigation, including patent litigation, and/or regulatory actions;
the ability of the Company to protect its intellectual property
rights; and the impact of the completion of the Company’s
previously reported internal investigation on the Company’s
business and diversion of management time and attention on related
issues, including any related investigations or proceedings,
shareholder lawsuits, reputational harm, or the possibility that
executives or other employees may resign. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. For a discussion of other risks
and uncertainties, and other important factors, any of which could
cause the Company’s actual results to differ from those contained
in the forward-looking statements, see the section titled “Risk
Factors” in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2021 filed with the Securities and Exchange
Commission on March 25, 2022, as updated by the Company’s
subsequent filings with the Securities and Exchange Commission. All
information in this press release is as of the date of the release,
and the Company undertakes no duty to update this information or to
publicly announce the results of any revisions to any of such
statements to reflect future events or developments, except as
required by law.
EXICURE, INC.
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands, except share and per share
data)
March 31, 2022
December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents
$
23,890
$
34,644
Short-term investments
2,494
4,497
Prepaid expenses and other assets
2,798
4,525
Total current assets
29,182
43,666
Property and equipment, net
3,612
3,927
Right-of-use asset
7,781
7,950
Other noncurrent assets
1,321
9,325
Total assets
$
41,896
$
64,868
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Current portion of long-term debt
$
—
$
6,873
Accounts payable
1,918
3,413
Accrued expenses and other current
liabilities
3,227
6,464
Deferred revenue, current
16,216
17,317
Total current liabilities
21,361
34,067
Deferred revenue, noncurrent
10,045
11,509
Lease liability, noncurrent
7,254
7,404
Other noncurrent liabilities
—
656
Total liabilities
$
38,660
$
53,636
Stockholders’ equity:
Preferred stock, $0.0001 par value per
share; 10,000,000 shares authorized, no shares issued and
outstanding, March 31, 2022 and December 31, 2021
—
—
Common stock, $0.0001 par value per share;
200,000,000 shares authorized, 122,792,877 issued and outstanding,
March 31, 2022; 108,783,144 issued and outstanding, December 31,
2021
12
11
Additional paid-in capital
181,644
181,290
Accumulated other comprehensive loss
(5
)
(2
)
Accumulated deficit
(178,415
)
(170,067
)
Total stockholders' equity
3,236
11,232
Total liabilities and stockholders’
equity
$
41,896
$
64,868
EXICURE, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except share and per
share data)
Three Months Ended
March 31,
2022
2021
Revenue:
Collaboration revenue
$
2,565
$
997
Total revenue
2,565
997
Operating expenses:
Research and development expense
7,140
10,262
General and administrative expense
3,162
2,892
Total operating expenses
10,302
13,154
Operating loss
(7,737
)
(12,157
)
Other (expense) income, net:
Dividend income
2
1
Interest income
2
88
Interest expense
(595
)
(409
)
Other expense, net
(20
)
—
Total other expense, net
(611
)
(320
)
Net loss before provision for income
taxes
(8,348
)
(12,477
)
Provision for income taxes
—
—
Net loss
$
(8,348
)
$
(12,477
)
Basic and diluted loss per common
share
$
(0.07
)
$
(0.14
)
Weighted-average basic and diluted common
shares outstanding
120,939,957
87,852,378
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220516005632/en/
Media: Karen Sharma MacDougall 781-235-3060
ksharma@macdougall.bio
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