Zosano Pharma Corporation (NASDAQ:ZSAN), a clinical-stage
biopharmaceutical company, today announced financial results for
the fourth quarter and year ended December 31, 2020, as well as
business highlights.
“Over this past year, we made important progress in advancing
QtryptaTM towards the market,” said Steven Lo, president and chief
executive officer of Zosano. “We expect to receive the FDA’s
feedback on our pharmacokinetic study protocol shortly, and if
supportive of our proposal, we are prepared to initiate this study
quickly. Our clear priority is to resubmit our NDA as soon as
possible so that patients suffering from debilitating migraines
have access to Qtrypta, if approved. Separately, last year we also
executed feasibility study agreements with Mitsubishi Tanabe Pharma
Corporation and two other partners to explore additional potential
therapeutic applications of our transdermal microneedle system
technology.”
Select Business Highlights
- Completed a Type A meeting with the U.S. Food and Drug
Administration (“FDA") Division of Neurology II (the “Division”) on
January 29, 2021 regarding the requirements for resubmission of the
Qtrypta (zolmitriptan transdermal microneedle system) 505(b)(2) New
Drug Application (“NDA”) following the Complete Response Letter
received on October 20, 2020
- Company plans to conduct an additional pharmacokinetic study
that incorporates a patient skin assessment for inclusion in an NDA
resubmission package, pending review of the study protocol by the
FDA
- Presented a post-hoc retrospective analysis of data from the
ZOTRIP trial at the January 2021 Annual Headache Cooperative of the
Pacific Winter Conference that suggested that Qtrypta™ conferred
therapeutic benefit at 30 minutes consistent with recently
published criteria for early onset of action, and that those
patients who were pain free at 30 minutes were still pain free at 2
hours
- Entered into three feasibility study agreements including one
with Mitsubishi Tanabe Pharma Corporation. Under these agreements,
Zosano plans to evaluate the feasibility of formulating each
partner’s pharmaceutical agent for administration with its
proprietary transdermal microneedle system technology
- Partnered with EVERSANA, a leading provider of commercial
services to the life science industry, to commercialize and
distribute Qtrypta™, if approved, in the United States
Financial Results for the Fourth Quarter Ended December
31, 2020Zosano reported a net loss for the fourth quarter
of 2020 of $8.1 million, or $0.08 per share on a basic and diluted
basis, compared with a net loss of $8.9 million, or $0.46 per share
on a basic and diluted basis, for the same quarter in 2019.
Research and development expenses for the fourth quarter of 2020
were $5.4 million, compared with $5.6 million for the same quarter
in 2019. The decrease of $0.2 million was due to $0.4 million of
lower employee and consulting expenses partially offset by higher
depreciation expense.
General and administrative expenses for the fourth quarter of
2020 were $2.6 million, compared with $3.1 million for the same
quarter in 2019. The decrease of $0.5 million was primarily due to
lower employee related expenses and professional service fees.
As of December 31, 2020, cash and cash equivalents were $35.3
million, compared with $6.3 million as of December 31, 2019.
Financial Results for the Fiscal Year Ended December 31,
2020Zosano reported a net loss for the full year 2020 of
$33.4 million, or $0.49 per share on a basic and diluted basis,
compared with a net loss of $37.6 million, or $2.29 per share on a
basic and diluted basis, for the full year 2019.
Research and development expenses for the full year 2020 were
$21.6 million, compared with $25.4 million in 2019. The decrease of
$3.8 million was primarily due to a decrease in pre-clinical and
clinical trial costs, related to the completion of the Qtrypta™
long-term safety study, partially offset by an increase in costs
associated with the scale up and technology transfer to our
commercial manufacturing organizations.
General and administrative expenses for the full year 2020 were
$11.2 million, compared with $11.8 million in 2019. The decrease of
$0.6 million primarily resulted from lower employee related
expenses.
About Zosano PharmaZosano Pharma Corporation is
a clinical-stage biopharmaceutical company focused on developing
products where rapid administration of approved molecules with
established safety and efficacy profiles may provide substantial
benefit to patients, in markets where patients remain underserved
by existing therapies. The company’s transdermal microneedle system
technology consists of titanium microneedles coated with drug that
are designed to enable rapid systemic administration of
therapeutics to patients. Zosano’s lead product candidate is
Qtrypta™ (M207), which is a proprietary formulation of zolmitriptan
designed to be delivered via its transdermal microneedle system
technology, as an acute treatment for migraine. Learn more at
www.zosanopharma.com.
Forward-Looking StatementsThis press release
contains forward-looking statements. All statements other than
statements of historical facts contained herein 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, including, but
not limited to, statements regarding the company’s plans to conduct
an additional pharmacokinetic study that incorporates a patient
skin assessment for inclusion in an NDA resubmission package, the
timing with respect to the FDA’s feedback on the pharmacokinetic
study protocol, plans for resubmission of the company’s Qtrypta NDA
to the FDA, plans to evaluate and explore additional potential
therapeutic applications of the company’s transdermal microneedle
system technology under feasibility study agreements, the potential
benefits of Qtrypta for patients and other future events and
expectations described in this press release. Readers are urged to
consider statements that include the words "may," "will," "would,"
"could," "should," "might," "believes," "estimates," "projects,"
"potential," "expects," "plans," "anticipates," "intends,"
"continues," "forecast," "designed," "goal," "approximately" or the
negative of those words or other comparable words to be uncertain
and forward-looking. These statements are subject to risks and
uncertainties that are difficult to predict, and actual outcomes
may differ materially. These include risks and uncertainties,
without limitation, associated with the company’s ability to obtain
additional cash resources to continue operations, the process of
discovering, developing and commercializing products that are safe
and effective for use as human therapeutics, risks inherent in the
effort to build a business around such products and other risks and
uncertainties described under the heading "Risk Factors" in the
company's most recent annual report on Form 10-K and quarterly
reports on Form 10-Q. Although Zosano believes that the
expectations reflected in these forward-looking statements are
reasonable, Zosano cannot in any way guarantee that the future
results, level of activity, performance or events and circumstances
reflected in forward-looking statements will be achieved or occur.
All forward-looking statements are based on information currently
available to Zosano and Zosano assumes no obligation to update any
such forward-looking statements.
Zosano Contacts:Christine MatthewsChief
Financial Officer510-745-1200
Zosano PR:Sylvia Wheeler or Alexandra
Santosswheeler@wheelhouselsa.com or asantos@wheelhouselsa.com
ZOSANO PHARMA
CORPORATIONCONDENSED STATEMENTS OF
OPERATIONS(in thousands, except per share
amounts)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
Service revenue |
$ |
224 |
|
|
|
$ |
— |
|
|
|
$ |
224 |
|
|
|
$ |
— |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of service revenue |
171 |
|
|
|
— |
|
|
|
171 |
|
|
|
— |
|
|
Research and development |
5,352 |
|
|
|
5,643 |
|
|
|
21,622 |
|
|
|
25,385 |
|
|
General and administrative |
2,637 |
|
|
|
3,103 |
|
|
|
11,189 |
|
|
|
11,812 |
|
|
Total operating expenses |
8,160 |
|
|
|
8,746 |
|
|
|
32,982 |
|
|
|
37,197 |
|
|
Loss from operations |
(7,936 |
) |
|
|
(8,746 |
) |
|
|
(32,758 |
) |
|
|
(37,197 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
1 |
|
|
|
4 |
|
|
|
18 |
|
|
|
207 |
|
|
Interest expense |
(158 |
) |
|
|
(166 |
) |
|
|
(719 |
) |
|
|
(523 |
) |
|
Other income (expense), net |
(5 |
) |
|
|
(32 |
) |
|
|
90 |
|
|
|
(76 |
) |
|
Loss before provision for income
taxes |
(8,098 |
) |
|
|
(8,940 |
) |
|
|
(33,369 |
) |
|
|
(37,589 |
) |
|
Provision for income taxes |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net loss |
$ |
(8,098 |
) |
|
|
$ |
(8,940 |
) |
|
|
$ |
(33,369 |
) |
|
|
$ |
(37,589 |
) |
|
|
|
|
|
|
|
|
|
Net loss per common share – basic
and diluted |
$ |
(0.08 |
) |
|
|
$ |
(0.46 |
) |
|
|
$ |
(0.49 |
) |
|
|
$ |
(2.29 |
) |
|
Weighted-average shares used in
computing net loss per common share – basic and diluted |
102,066 |
|
|
|
19,409 |
|
|
|
67,907 |
|
|
|
16,384 |
|
|
ZOSANO PHARMA
CORPORATIONCONDENSED BALANCE
SHEETS(in thousands, except par value and share
amounts)
|
December 31,2020 |
|
December 31,2019 |
ASSETS |
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
35,263 |
|
|
|
$ |
6,316 |
|
|
Prepaid expenses and other current assets |
453 |
|
|
|
497 |
|
|
Total current assets |
35,716 |
|
|
|
6,813 |
|
|
Restricted cash |
455 |
|
|
|
455 |
|
|
Property and equipment, net |
30,909 |
|
|
|
24,636 |
|
|
Operating lease right-of-use
assets |
4,928 |
|
|
|
5,763 |
|
|
Other long-term assets |
3 |
|
|
|
3 |
|
|
Total assets |
$ |
72,011 |
|
|
|
$ |
37,670 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,884 |
|
|
|
$ |
4,356 |
|
|
Accrued compensation |
2,294 |
|
|
|
2,015 |
|
|
Build-to-suit obligation, current portion |
4,779 |
|
|
|
4,554 |
|
|
Operating lease liabilities, current portion |
1,378 |
|
|
|
1,140 |
|
|
Paycheck Protection Program loan, current portion |
809 |
|
|
|
— |
|
|
Other accrued liabilities |
3,367 |
|
|
|
4,172 |
|
|
Total current liabilities |
14,511 |
|
|
|
16,237 |
|
|
Build-to-suit obligation,
long-term portion, net of debt issuance costs and discount |
4,359 |
|
|
|
6,095 |
|
|
Operating lease liabilities |
4,687 |
|
|
|
5,931 |
|
|
Paycheck Protection Program loan,
long-term portion |
812 |
|
|
|
— |
|
|
Other liabilities |
127 |
|
|
|
15 |
|
|
Total liabilities |
24,496 |
|
|
|
28,278 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.0001 par value, 5,000,000 shares authorized;
none issued and outstanding as of December 31, 2020 and
2019 |
— |
|
|
|
— |
|
|
Common stock, $0.0001 par value; 250,000,000 shares authorized as
of December 31, 2020 and 2019, respectively; 102,066,218 and
23,503,214 shares issued and outstanding as of December 31,
2020 and 2019, respectively |
10 |
|
|
|
2 |
|
|
Additional paid-in capital |
379,695 |
|
|
|
308,211 |
|
|
Accumulated deficit |
(332,190 |
) |
|
|
(298,821 |
) |
|
Total stockholders’ equity |
47,515 |
|
|
|
9,392 |
|
|
Total liabilities and stockholders’ equity |
$ |
72,011 |
|
|
|
$ |
37,670 |
|
|
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