Ritter Pharmaceuticals Reports Financial Results for the Three Months Ended March 31, 2019
May 14 2019 - 7:57PM
Ritter Pharmaceuticals, Inc. (Nasdaq: RTTR) (“Ritter
Pharmaceuticals” or the “Company”), a developer of innovative
therapeutic products that modulate the gut microbiome to treat
gastrointestinal diseases with an initial focus on the development
of RP-G28, a drug candidate with the potential to be the first
FDA-approved treatment for lactose intolerance (“LI”), today
reported financial results for the three months ended March 31,
2019.
“Primary efforts over the past quarter have been
focused on ensuring quality and compliance in our 557 subject Phase
3 clinical trial, called Liberatus. All subjects have now completed
the treatment phase of the study, with only the 90-day real-world
observational period remaining.” said Andrew J. Ritter, Chief
Executive Officer of Ritter Pharmaceuticals. “We remain on track
and look forward to completing the study and reporting top-line
results early in the fourth quarter of 2019.”
John Beck, Chief Financial Officer, added, “Cash
burn for the first quarter of 2019 was in line with our
expectations as we progressed through the costliest phase of the
Liberatus study and, as we move towards study completion, is
expected to subside considerably. We remain on target to
reach data readout with cash reserves in line with previous
projections.”
Quarter ended March 31, 2019 Financial
Results
As of March 31, 2019, we had
$8.3 million in cash, cash equivalents, interest income
receivable and short-term investments in marketable securities,
compared to $14.9 million in cash, cash equivalents, interest
income receivable and short-term investments in marketable
securities as of December 31, 2018. The net decrease in cash,
cash equivalents, interest income receivable and short-term
investments in marketable securities as of March 31, 2019 was due
to our use of cash to fund our Phase 3 clinical study of RP-G28 and
for other general corporate purposes.
Operating expenses increased to
$4.8 million for the three months ended March 31, 2019 from
$2.0 million for the three months ended March 31, 2018. The
increase in total operating expenses was primarily a result of an
increase in development expenses due to the continued progression
of our ongoing Phase 3 clinical trial of RP-G28 through completion
of enrollment in March 2019, as well as an increase in consulting
and professional outside services and related costs to support
these increased development activities, offset by reductions in
non-cash stock-based compensation. Operating expenses during the
three months ended March 31, 2018 primarily reflect the preparation
for the Phase 3 clinical trial of RP-G28 and associated
manufacturing costs offset by a reduction in management and
monitoring costs associated with the favorable settlement of
certain disputed payables related to our prior clinical research
organization.
Net loss applicable to common stockholders
increased to $4.7 million, or $0.58 per share, for the three months
ended March 31, 2019, from $2.0 million, or $0.41 per share, for
the three months ended March 31, 2018. Net loss applicable to
common stockholders included non-cash, stock-based compensation
charges of $146,000, or $0.02 per share, as compared to stock-based
compensation of $213,000, or $0.04 per share, for the three months
ended March 31, 2019 and 2018, respectively.
About Ritter
Pharmaceuticals
Ritter Pharmaceuticals, Inc.
(www.RitterPharma.com, @RitterPharma) develops innovative
therapeutic products that modulate the gut microbiome to treat
digestive disorders and gastrointestinal diseases. The Company’s
lead product candidate, RP-G28, has the potential to become the
first FDA-approved treatment for lactose intolerance, a condition
that affects over one billion people worldwide. RP-G28 is in Phase
3 clinical development with its first Phase 3 clinical trial, known
as “Liberatus,” currently underway. The Company is further
exploring the therapeutic potential that gut microbiome changes may
have on treating/preventing a variety of diseases including
gastrointestinal diseases, cancer, metabolic, and liver
disease.
Forward-Looking Statements
This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that express the current beliefs and
expectations of Ritter Pharmaceuticals’ management. Any statements
contained herein that do not describe historical facts are
forward-looking statements, including statements related to our
anticipated timing for completion of the Liberatus study and our
release of data from the study and our expectations with respect to
our cash burn and cash reserves following completion of our
Liberatus study. Forward-looking statements are subject to risks
and uncertainties that could cause actual results, performance and
achievements to differ materially from those discussed in such
forward-looking statements. Some of the factors that could affect
our actual results are included in the periodic reports on Form
10-K and Form 10-Q that we file with the Securities and Exchange
Commission. Ritter cautions readers not to place undue reliance on
any forward-looking statements, which speak only as of the date
they were made. The Company undertakes no obligation to update or
revise forward-looking statements, except as otherwise required by
law, whether as a result of new information, future events or
otherwise.
ContactsInvestor Contact:John Beck 310-203-1000
john@ritterpharma.com
RITTER PHARMACEUTICALS,
INC.CONDENSED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
|
|
For the Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
$ |
3,574,855 |
|
|
$ |
849,683 |
|
Patent costs |
|
|
48,625 |
|
|
|
63,088 |
|
General and administrative |
|
|
1,153,577 |
|
|
|
1,125,891 |
|
Total operating costs and expenses |
|
|
4,777,057 |
|
|
|
2,038,662 |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(4,777,057 |
) |
|
|
(2,038,662 |
) |
|
|
|
|
|
|
|
|
|
Other
income: |
|
|
|
|
|
|
|
|
Interest income |
|
|
71,291 |
|
|
|
25,972 |
|
Total other income |
|
|
71,291 |
|
|
|
25,972 |
|
Net loss applicable to
common stockholders |
|
$ |
(4,705,766 |
) |
|
$ |
(2,012,690 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive
loss: |
|
|
|
|
|
|
|
|
Unrealized loss on debt securities |
|
|
1,511 |
|
|
|
- |
|
Comprehensive loss |
|
$ |
(4,704,255 |
) |
|
$ |
(2,012,690 |
) |
|
|
|
|
|
|
|
|
|
Net loss per common share –
basic and diluted |
|
$ |
(0.58 |
) |
|
$ |
(0.41 |
) |
Weighted average common shares
outstanding – basic and diluted |
|
|
8,055,921 |
|
|
|
4,944,763 |
|
RITTER PHARMACEUTICALS,
INC.CONDENSED BALANCE SHEETS
|
|
March 31, 2019 |
|
|
December 31, 2018 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,516,748 |
|
|
$ |
7,812,259 |
|
Accrued interest receivable |
|
|
17,393 |
|
|
|
54,456 |
|
Investment in marketable securities |
|
|
2,765,996 |
|
|
|
6,988,780 |
|
Prepaid expenses |
|
|
442,208 |
|
|
|
421,522 |
|
Total current assets |
|
|
8,742,345 |
|
|
|
15,277,017 |
|
Other assets |
|
|
|
|
|
|
|
|
Right-of-use assets |
|
|
172,615 |
|
|
|
- |
|
Other assets |
|
|
27,259 |
|
|
|
22,725 |
|
Total other assets |
|
|
199,874 |
|
|
|
22,725 |
|
Property and equipment,
net |
|
|
18,797 |
|
|
|
20,160 |
|
Total
Assets |
|
$ |
8,961,016 |
|
|
$ |
15,319,902 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,133,386 |
|
|
$ |
4,512,316 |
|
Accrued expenses |
|
|
1,814,366 |
|
|
|
1,407,843 |
|
Lease liabilities |
|
|
113,790 |
|
|
|
- |
|
Other liabilities |
|
|
- |
|
|
|
13,359 |
|
Total current liabilities |
|
|
4,061,542 |
|
|
|
5,933,518 |
|
Lease liabilities,
non-current |
|
|
70,854 |
|
|
|
- |
|
Total
Liabilities |
|
|
4,132,396 |
|
|
|
5,933,518 |
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Series A preferred stock,
$0.001 par value; 15,000,000 shares authorized, 4,080 shares issued
and outstanding as of March 31, 2019 and December 31, 2018 |
|
|
2,289,324 |
|
|
|
2,289,324 |
|
Series B preferred stock,
$0.001 par value; 1,000,000 shares authorized, 3,000 and 5,608
shares issued and outstanding as of March 31, 2019 and December 31,
2018, respectively |
|
|
2,090,199 |
|
|
|
3,906,931 |
|
Series C preferred stock,
$0.001 par value; 100,000 shares authorized, 240 and 1,880 shares
issued and outstanding as of March 31, 2019 and December 31, 2018,
respectively |
|
|
240,000 |
|
|
|
1,880,000 |
|
Common stock, $0.001 par
value; 225,000,000 shares authorized, 9,042,332 and 6,036,562
shares issued and outstanding as of March 31, 2019 and December 31,
2018, respectively |
|
|
9,042 |
|
|
|
6,037 |
|
Additional paid-in
capital |
|
|
75,105,378 |
|
|
|
71,505,160 |
|
Accumulated other
comprehensive income (loss) |
|
|
1,511 |
|
|
|
(923 |
) |
Accumulated deficit |
|
|
(74,906,834 |
) |
|
|
(70,200,145 |
) |
Total stockholders’ equity |
|
|
4,828,620 |
|
|
|
9,386,384 |
|
Total Liabilities and
Stockholders’ Equity |
|
|
8,961,016 |
|
|
$ |
15,319,902 |
|
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