RPHM Reneo Pharmaceuticals Inc

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 10, 2023

 

 

Reneo Pharmaceuticals, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-40315	47-2309515
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
18575 Jamboree Road, Suite 275-S
Irvine, California				92612
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 858 283-0280

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.0001 per share		RPHM		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Item 2.02 Results of Operations and Financial Condition.

On August 10, 2023, Reneo Pharmaceuticals, Inc. (the “Company”) issued a press release reporting the Company’s financial results for the second quarter ended June 30, 2023 and other recent corporate updates. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Item 2.02 of this Current Report on 8-K (including Exhibit 99.1) is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, whether made before or after today’s date, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific references in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.		Description
99.1		Press Release Announcing Financial Results, dated August 10, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Reneo Pharmaceuticals, Inc.
Date:	August 10, 2023	By:	/s/ Gregory J. Flesher
			Gregory J. Flesher President and Chief Executive Officer (Principal Executive Officer)

 

 

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Exhibit 99.1

 

Reneo Pharmaceuticals Reports Second Quarter 2023 Financial Results

Topline results of the STRIDE study, the pivotal mavodelpar clinical trial in adult patients with primary mitochondrial myopathies (PMM) due to mitochondrial DNA (mtDNA) defects, anticipated in 4Q23

 

IRVINE, Calif., August 10, 2023 (GLOBE NEWSWIRE) -- Reneo Pharmaceuticals, Inc. (Nasdaq: RPHM), a clinical-stage pharmaceutical company focused on the development and commercialization of therapies for patients with rare genetic mitochondrial diseases, today reported financial results for the second quarter ended June 30, 2023 and provided a business update.

 

“We are looking forward to topline results from our pivotal STRIDE study expected in the fourth quarter this year and continue to be encouraged by the high roll over rate of PMM patients into our open label extension STRIDE AHEAD study, where we have enrolled over 130 patients,” said Gregory J. Flesher, President and CEO of Reneo Pharmaceuticals. “Our recent financing extended our runway, providing the company with what we expect to be sufficient capital to fund operations beyond the potential submission of a new drug application for mavodelpar for the treatment of PMM in the United States anticipated in the first half of 2024.”

Second Quarter and Recent Highlights

 

Financial Results for the Three Months Ended June 30, 2023

We reported a net loss of $19.5 million, or $0.65 per share, during the second quarter of 2023, compared to a net loss of $12.3 million, or $0.50 per share, for the same period in 2022. We had $142.7 million in cash, cash equivalents, and short-term investments as of June 30, 2023.
 

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Research and development (R&D) expenses were $14.4 million during the second quarter of 2023, compared to $8.1 million for the same period in 2022. This increase in R&D expenses was primarily due to an increase of $4.7 million related to clinical and contract manufacturing costs to support the marketing registration for mavodelpar, an increase of $1.0 million in personnel-related costs due to additional headcount, and an increase of $0.6 million in medical affairs costs.
 

General and administrative (G&A) expenses were $6.6 million during the second quarter of 2023, compared to $4.3 million for the same period in 2022. This increase in G&A expenses was primarily due to an increase of $1.2 million in commercial development activities and an increase of $1.0 million in facility and personnel-related costs due to additional headcount.

In May 2023, we completed a public offering and concurrent private placement in which we sold an aggregate of 8,531,250 shares of common stock at a price of $8.00 per share totaling approximately $68.3 million in gross proceeds. After deducting underwriting discounts and commissions and offering expenses, we received total net proceeds of approximately $63.5 million.

About Reneo Pharmaceuticals

Reneo is a clinical-stage pharmaceutical company focused on the development and commercialization of therapies for patients with rare genetic mitochondrial diseases, which are often associated with the inability of mitochondria to produce adenosine triphosphate (ATP). Our lead product candidate, mavodelpar, is a potent and selective agonist of the peroxisome proliferator-activated receptor delta (PPARδ). Mavodelpar has been shown to increase transcription of genes involved in mitochondrial function and increase fatty acid oxidation (FAO), and may increase production of new mitochondria. For additional information, please see reneopharma.com.

About Mavodelpar

Mavodelpar (REN001) is a potent and selective peroxisome proliferator-activated receptor delta (PPARδ) agonist currently in clinical development for two rare genetic mitochondrial diseases that typically present with myopathy and have high unmet medical needs: PMM and LC-FAOD. For additional information, please see clinicaltrials.gov.

About PMM

PMM are a group of rare, genetic metabolic disorders caused by mutations or deletions in the mtDNA or nDNA. These genetic alterations hamper the ability of mitochondria to generate energy from nutrient sources, resulting in energy deficits that are most pronounced in tissues with high energy demand such as muscle, brain, and heart. The symptoms of PMM include muscle weakness, exercise intolerance, movement disorder, deafness, blindness, and droopy eyelids among others. The prognosis for these disorders ranges in severity from progressive weakness to death.

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Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, the potential development, registration and commercialization of mavodelpar, the potential filing of a new drug application for mavodelpar for the treatment of PMM in the United States, the timing of topline data from the STRIDE study, the sufficiency of the Company’s cash position and the Company’s cash runway. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “plans,” “will,” “believes,” “anticipates,” “expects,” “intends,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Reneo’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with Reneo’s business in general, and the other risks described in Reneo’s filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Reneo undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

 

 

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RENEO PHARMACEUTICALS, INC.

Consolidated Balance Sheets

(In thousands, except share and par value data)

 

		June 30, 2023				December 31, 2022
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	9,081			$	19,927
Short-term investments			133,596				81,246
Prepaid expenses and other current assets			3,643				5,180
Total current assets			146,320				106,353
Property and equipment, net			554				453
Right-of-use assets			1,086				1,292
Other non-current assets			79				84
Total assets		$	148,039			$	108,182
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	1,828			$	1,893
Accrued expenses			11,592				4,827
Operating lease liabilities, current portion			318				404
Total current liabilities			13,738				7,124
Operating lease liabilities, less current portion			897				1,059
Performance award			876				29
Total liabilities			15,511				8,212
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value; 200,000,000 shares authorized at    June 30, 2023 and December 31, 2022; 33,800,788 and 24,699,553 shares    issued and outstanding at June 30, 2023 and December 31, 2022,    respectively			3				3
Additional paid-in capital			303,877				236,693
Accumulated deficit			(171,321	)			(136,683	)
Accumulated other comprehensive loss			(31	)			(43	)
Total stockholders’ equity			132,528				99,970
Total liabilities and stockholders’ equity		$	148,039			$	108,182

 

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RENEO PHARMACEUTICALS, INC.

Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Operating expenses:
Research and development		$	14,400			$	8,132			$	25,389			$	17,410
General and administrative			6,639				4,299				11,771				8,036
Total operating expenses			21,039				12,431				37,160				25,446
Loss from operations			(21,039	)			(12,431	)			(37,160	)			(25,446	)
Other income			1,508				119				2,522				98
Net loss			(19,531	)			(12,312	)			(34,638	)			(25,348	)
Unrealized (loss) gain on short-term investments			(43	)			104				12				134
Comprehensive loss		$	(19,574	)		$	(12,208	)		$	(34,626	)		$	(25,214	)
Net loss per share attributable to common stockholders,    basic and diluted		$	(0.65	)		$	(0.50	)		$	(1.25	)		$	(1.04	)
Weighted-average shares used in computing net    loss per share, basic and diluted			30,215,321				24,463,824				27,640,172				24,461,085

 

 

 

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RENEO PHARMACEUTICALS, INC.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

		Six Months Ended June 30,
		2023				2022
Cash flows from operating activities
Net loss		$	(34,638	)		$	(25,348	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation			2,364				2,113
Depreciation and amortization			83				41
Amortization/accretion on short-term investments			(2,011	)			(22	)
Changes in the fair value of performance award			847				(389	)
Non-cash lease expense			241				241
Loss on disposal of fixed asset			3				—
Changes in operating assets and liabilities:
Prepaid expenses and other assets			1,542				905
Accounts payable and accrued expenses			6,690				1,726
Operating lease liabilities			(283	)			(222	)
Net cash used in operating activities			(25,162	)			(20,955	)
Cash flows from investing activities
Purchases of property and equipment			(177	)			(68	)
Purchase of available-for-sale short-term investments			(132,327	)			(15,922	)
Proceeds from maturities of available-for-sale short-term investments			82,000				30,500
Net cash (used in) provided by investing activities			(50,504	)			14,510
Cash flows from financing activities
Proceeds from public offering of common stock, net of offering costs			58,862				—
Proceeds from private placement of common stock, net of offering costs			4,667				—
Proceeds from issuance of common stock under the at-the-market    facility, net of offering costs			1,009				—
Proceeds from issuance of common stock in connection with equity plans			282				49
Net cash provided by financing activities			64,820				49
Net decrease in cash and cash equivalents			(10,846	)			(6,396	)
Cash and cash equivalents, beginning of period			19,927				124,660
Cash and cash equivalents, end of period		$	9,081			$	118,264
Noncash operating activities:
Right-of-use assets obtained in exchange for lease obligations		$	—			$	1,524
Noncash investing and financing activities:
Property and equipment in accounts payable		$	10			$	—

 

 

 

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Contacts:

Danielle Spangler
Investor Relations
Reneo Pharmaceuticals, Inc.
dspangler@reneopharma.com

Matthew Purcell
Media Inquiries
Russo Partners, LLC
matthew.purcell@russopartnersllc.com

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v3.23.2

Document and Entity Information	Aug. 10, 2023
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001637715
Document Type	8-K
Document Period End Date	Aug. 10, 2023
Entity Registrant Name	Reneo Pharmaceuticals, Inc.
Entity Incorporation State Country Code	DE
Entity File Number	001-40315
Entity Tax Identification Number	47-2309515
Entity Address, Address Line One	18575 Jamboree Road
Entity Address, Address Line Two	Suite 275-S
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92612
City Area Code	858
Local Phone Number	283-0280
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common stock, par value $0.0001 per share
Trading Symbol	RPHM
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	false

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