Proteostasis Therapeutics Reports Third Quarter 2016 Financial Results
November 10 2016 - 7:00AM
Proteostasis Therapeutics, Inc. (NASDAQ:PTI), a biopharmaceutical
company developing small molecule therapeutics to treat diseases
caused by dysfunctional protein processing such as cystic fibrosis,
today reported financial results for the third quarter ended
September 30, 2016.
Revenue was $1.7 million for the three months ended
September 30, 2016, compared to $1.2 million for the three
months ended September 30, 2015. The increase was the result
of an increase in revenue recognized from the Company’s
collaboration with Astellas.
Research and development expenses were $9.2 million for the
three months ended September 30, 2016, compared to $6.3
million for the three months ended September 30, 2015. The
increase was primarily due to an increase of $2.6 million related
to activities supporting the Company’s Phase 1 clinical trials of
PTI-428 which commenced during the first quarter of 2016.
General and administrative expenses were $3.3 million for the
three months ended September 30, 2016, compared to $1.5
million for the three months ended September 30, 2015. The
increase was primarily due to a $0.8 million increase in
personnel-related costs, a $0.6 million increase in professional
fees and a $0.3 million increase in occupancy and other
facility-related costs.
Net loss was $10.8 million for the three months ended
September 30, 2016, compared to $7.1 million for the three
months ended September 30, 2015. The increase in net loss was
primarily attributable to the increase in operating expenses noted
above.
Cash, cash equivalents and short-term investments were $100.2
million as of September 30, 2016, including the proceeds from
the Company’s follow-on public offering in the third quarter of
2016. In September 2016, the Company closed its follow-on public
offering of 5,750,000 shares of its common stock at a public
offering price of $13.00 per share. The net proceeds from the
offering were $69.5 million, after deducting the underwriting
discount and expenses associated with the offering payable by the
Company.
Based on the Company’s current operating plan, the Company
expects its cash, cash equivalents and short-term investments will
be sufficient to fund its operating expenses and capital
expenditures requirements through the second quarter of 2018.
About Proteostasis Therapeutics, Inc.
Proteostasis Therapeutics, Inc. is a biopharmaceutical company
dedicated to the discovery of groundbreaking therapies to treat
diseases caused by dysfunctional protein processing, such as cystic
fibrosis (CF). Headquartered in Cambridge, MA, the Proteostasis
Therapeutics team focuses on identifying therapies that modulate
the proteostasis imbalance in cells and restore protein function.
Proteostasis Therapeutics is currently enrolling eligible adults
with CF to participate in its Phase 1 clinical trials of PTI-428.
In addition to its multiple programs in cystic fibrosis,
Proteostasis Therapeutics has formed collaborations with Biogen to
research and identify therapeutic candidates for neurodegenerative
disease and with Astellas Pharma, Inc. to research and identify
therapies targeting the Unfolded Protein Response (UPR) pathway.
For more information, visit www.proteostasis.com.
Safe HarborTo the extent that statements in
this release are not historical facts, they are forward-looking
statements reflecting the current beliefs and expectations of
management made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Words such
as “may,” “will,” “expect,” “anticipate,” “estimate,” “intend,” and
similar expressions (as well as other words or expressions
referencing future events, conditions or circumstances) are
intended to identify forward-looking statements. Examples of
forward-looking statements made in this release include, without
limitation, statements regarding the sufficiency of our cash
balances to fund our operating and capital expenses through an
expected date. Forward-looking statements made in this
release involve substantial risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by the forward-looking statements, and we therefore cannot
assure you that our plans, intentions, expectations or strategies
will be attained or achieved. Such risks and uncertainties
include, without limitation, uncertainties inherent in the
execution and completion of clinical trials, in the timing of
availability of trial data, in the actions of regulatory agencies,
and those set forth in our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2016, and our other SEC filings.
We assume no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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PROTEOSTASIS THERAPEUTICS, INC. |
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BALANCE SHEETS |
|
(In thousands, except share and per share
amounts) |
|
(Unaudited) |
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2016 |
|
|
2015 |
|
Assets |
|
|
|
|
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|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
43,828 |
|
|
$ |
13,844 |
|
Short-term investments |
|
|
56,412 |
|
|
|
— |
|
Accounts receivable |
|
|
445 |
|
|
|
918 |
|
Other current assets |
|
|
2,388 |
|
|
|
180 |
|
Total current assets |
|
|
103,073 |
|
|
|
14,942 |
|
Property and equipment,
net |
|
|
342 |
|
|
|
566 |
|
Deferred offering
costs |
|
|
— |
|
|
|
2,744 |
|
Other assets |
|
|
81 |
|
|
|
144 |
|
Restricted cash |
|
|
294 |
|
|
|
294 |
|
Total assets |
|
$ |
103,790 |
|
|
$ |
18,690 |
|
Liabilities,
Convertible Preferred Stock and Stockholders’ Equity
(Deficit) |
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Current liabilities: |
|
|
|
|
|
|
|
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Accounts payable |
|
$ |
2,809 |
|
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$ |
3,330 |
|
Accrued expenses |
|
|
4,182 |
|
|
|
2,248 |
|
Deferred revenue |
|
|
4,683 |
|
|
|
4,076 |
|
Deferred rent |
|
|
196 |
|
|
|
182 |
|
Total current liabilities |
|
|
11,870 |
|
|
|
9,836 |
|
Deferred revenue, net of
current portion |
|
|
1,666 |
|
|
|
4,265 |
|
Deferred rent, net of
current portion |
|
|
139 |
|
|
|
287 |
|
Preferred stock warrant
liability |
|
|
— |
|
|
|
110 |
|
Derivative liability |
|
|
142 |
|
|
|
2 |
|
Total liabilities |
|
|
13,817 |
|
|
|
14,500 |
|
Commitments and
contingencies (Note 9) |
|
|
|
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Convertible preferred
stock, (Series A and B), $0.001 par value; 0 and 110,057,398
shares authorized as of September 30, 2016 and December 31, 2015,
respectively; 0 and 104,854,769 shares issued and outstanding
as of September 30, 2016 and December 31, 2015, respectively;
aggregate liquidation preference of $0 and $149,392,
respectively, as of September 30, 2016 and December 31, 2015 |
|
|
— |
|
|
|
112,292 |
|
Stockholders’ equity
(deficit): |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value;
5,000,000 and 0 shares authorized as of September 30, 2016
and December 31, 2015, respectively; no shares issued and
outstanding as of September 30, 2016 and December 31, 2015 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value;
125,000,000 and 170,000,000 shares authorized as of September
30, 2016 and December 31, 2015, respectively; 24,945,125 and
571,137 shares issued and outstanding as of September 30, 2016 and
December 31, 2015, respectively |
|
|
26 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
237,989 |
|
|
|
12,115 |
|
Accumulated other comprehensive
loss |
|
|
(9 |
) |
|
|
— |
|
Accumulated deficit |
|
|
(148,033 |
) |
|
|
(120,218 |
) |
Total stockholders’ equity
(deficit) |
|
|
89,973 |
|
|
|
(108,102 |
) |
Total liabilities, convertible
preferred stock and stockholders’ equity (deficit) |
|
$ |
103,790 |
|
|
$ |
18,690 |
|
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PROTEOSTASIS THERAPEUTICS, INC. |
|
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CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(In thousands, except share and per share
amounts) |
|
(Unaudited) |
|
|
|
|
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Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Revenue |
|
$ |
1,715 |
|
|
$ |
1,201 |
|
|
$ |
4,324 |
|
|
$ |
3,078 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
9,218 |
|
|
|
6,258 |
|
|
|
23,498 |
|
|
|
16,737 |
|
General and administrative |
|
|
3,266 |
|
|
|
1,523 |
|
|
|
8,682 |
|
|
|
4,553 |
|
Total operating expenses |
|
|
12,484 |
|
|
|
7,781 |
|
|
|
32,180 |
|
|
|
21,290 |
|
Loss from operations |
|
|
(10,769 |
) |
|
|
(6,580 |
) |
|
|
(27,856 |
) |
|
|
(18,212 |
) |
Interest income |
|
|
36 |
|
|
|
— |
|
|
|
56 |
|
|
|
— |
|
Interest expense |
|
|
— |
|
|
|
(189 |
) |
|
|
— |
|
|
|
(599 |
) |
Other expense, net |
|
|
(38 |
) |
|
|
(281 |
) |
|
|
(15 |
) |
|
|
(598 |
) |
Net loss |
|
|
(10,771 |
) |
|
|
(7,050 |
) |
|
|
(27,815 |
) |
|
|
(19,409 |
) |
Modification of Series A
preferred stock |
|
|
— |
|
|
|
174 |
|
|
|
— |
|
|
|
10,739 |
|
Accruing dividends on
preferred stock |
|
|
— |
|
|
|
(2,459 |
) |
|
|
(1,378 |
) |
|
|
(6,698 |
) |
Net loss attributable to
common stockholders |
|
$ |
(10,771 |
) |
|
$ |
(9,335 |
) |
|
$ |
(29,193 |
) |
|
$ |
(15,368 |
) |
Net loss per share
attributable to common stockholders—basic and diluted |
|
$ |
(0.54 |
) |
|
$ |
(16.77 |
) |
|
$ |
(1.75 |
) |
|
$ |
(28.05 |
) |
Weighted average common
shares outstanding—basic and diluted |
|
|
20,073,685 |
|
|
|
556,567 |
|
|
|
16,672,368 |
|
|
|
547,816 |
|
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Media Contact:
Katie Engleman, Pure Communications, Inc.
(910) 509-3977
katie@purecommunicationsinc.com
Investor Contact:
Luke Heagle, Pure Communications, Inc.
(910) 726-1372
luke@purecommunicationsinc.com
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