NeuroBo Pharmaceuticals Reports First Quarter 2021 Financial Results
First Quarter Achievements
- Broadened the potential for product candidate, Gemcabene, by amending its Contingent Value Rights (CVR) agreement with the holders of the outstanding CVRs, to incentivize the evaluation of Gemcabene as a treatment for COVID-19. The CVRs were distributed to the holders of
Gemphire Therapeutics, Inc. common stock onDecember 30, 2019 , immediately prior to its merger with NeuroBo. The CVR amendment will allow NeuroBo to pursue Gemcabene as a therapy for COVID-19, with its own resources. In exchange, CVR holders will receive 10% of certain gross proceeds received by the company for any indication outside of treating cardiometabolic diseases. CVR holders will retain the original CVR for 80% of any proceeds of Gemcabene for cardiovascular conditions. - Strengthened the balance sheet with the successful completion of a private placement of 2.5 million shares of common stock and warrants to purchase up to an aggregate 2.5 million shares of common stock, with aggregate gross proceeds to the company of
$10.0 million and net proceeds to the company of approximately$9.2 million .
Management Commentary
"Throughout the first quarter of 2021, we continued to make progress advancing the 60-patient Phase 2/3 clinical trial of our lead drug candidate, ANA001, a proprietary oral niclosamide formulation, as a treatment for moderate to severe COVID-19," stated
First Quarter 2021 Financial and Operating Results
- Research and Development (R&D) Expenses were approximately
$1.1 million for the quarter endedMarch 31, 2021 , compared with approximately$2.2 million for the quarter endedMarch 31, 2020 . The$1.0 million decrease was primarily attributed to overall Contract Research Organization termination costs associated with the Phase 3 clinical trials of NB-01 in the amount of$0.7 million and the further development of Gemcabene under the CVR Agreement in the amount of$0.4 million that occurred during the first quarter of 2020 with a small offset for increased research activities in the first quarter of 2021 when compared with the comparable quarter in the prior year. - General and Administrative Expenses were
$2.2 million for the three months endedMarch 31, 2021 , compared with$2.6 million for the three months endedMarch 31, 2020 . The decrease of$0.4 million was primarily due to a reduction in transactional related costs in the amount of$0.3 million with regard to the company's acquisitions when compared with the comparable quarter in the prior year. In addition, there was a reduction in legal costs in the amount of$0.2 million in the current quarter associated with the streamlining of the company's intellectual property portfolio, offset in part by increases in insurance premium costs during the current quarter of$0.1 million . - Net Loss for the quarter ended
March 31, 2021 was$3.3 million , or$0.15 per basic and diluted share, based on 21,615,626 weighted average common shares outstanding, compared with a net loss of$4.8 million , or$0.30 per basic and diluted share, based on 15,670,800 weighted average common shares outstanding for the quarter endedMarch 31, 2020 . - Cash and Cash Equivalents were
$13.0 million as ofMarch 31, 2021 , compared with$10.1 million as ofDecember 31, 2020 . Operating at its level of scientific activity during the quarter endedMarch 31, 2021 , NeuroBo expects that its cash position will be adequate to fund operations into the fourth quarter of 2021.
About
For more information visit: https://www.neurobopharma.com.
Forward Looking Statements
Any statements in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements regarding the development of NeuroBo's product candidates and the therapeutic potential, timing and nature of clinical trials and potential regulatory approval of NeuroBo's clinical programs and pipeline. Forward-looking statements are usually identified by the use of words, such as "believes," "anticipates," "expects," "intends," "plans," "may," "potential," "will," "could" and similar expressions. Actual results may differ materially from those indicated by forward-looking statements as a result of various important factors and risks. These factors, risks and uncertainties include, but are not limited to: the failure to obtain all of the benefits or recognize all of the synergies anticipated from the ANA acquisition; the integration of ANA potentially diverting management resources from operational matters and other strategic opportunities; the effect of future milestone payments and royalties specified in the ANA acquisition agreement on the results of operations and financial position of NeuroBo; the occurrence of health epidemics or contagious diseases, such as COVID-19, and potential effects on NeuroBo's business, clinical trial sites, supply chain and manufacturing facilities; NeuroBo's ability to continue as a going concern; the timing of completion of NeuroBo's planned clinical trials, including with respect to ANA001 and Gemcabene; the timing of the availability of data from NeuroBo's clinical trials, including with respect to ANA001 and Gemcabene; NeuroBo's plans to research, develop and commercialize its current and future product candidates, including the potential alternative pathways for NB-01; NeuroBo's ability to successfully collaborate with existing collaborators or enter into new collaborations and to fulfill its obligations under any such collaboration agreements; the clinical utility, potential benefits and market acceptance of NeuroBo's product candidates, including ANA001 and Gemcabene; the impact of government laws and regulations; NeuroBo's ability to protect its intellectual property position; and NeuroBo's need for additional financing to fulfill its stated goals; and other factors discussed in the "Risk Factors" section of NeuroBo's Annual Report on Form 10-K filed with the
Contacts:
+1-917-633-6086
mmiller@rxir.com
- Tables to Follow -
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2021 |
2020 |
||||||
(unaudited) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash |
$ |
13,035 |
$ |
10,089 |
|||
Prepaid expenses |
831 |
546 |
|||||
Other assets |
28 |
48 |
|||||
Total current assets |
13,894 |
10,683 |
|||||
Right-of-use assets and other |
123 |
130 |
|||||
Property and equipment, net |
143 |
155 |
|||||
Total assets |
$ |
14,160 |
$ |
10,968 |
|||
Liabilities and stockholders' equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
468 |
$ |
2,575 |
|||
Accrued liabilities |
452 |
1,096 |
|||||
Lease liability, short-term |
24 |
24 |
|||||
Total current liabilities |
944 |
3,695 |
|||||
Lease liability, long-term |
65 |
70 |
|||||
Total liabilities |
1,009 |
3,765 |
|||||
Commitments and contingencies (Notes 4, 5, 6 and 11) |
|||||||
Stockholders' equity |
|||||||
Preferred stock, |
— |
— |
|||||
Common stock, |
22 |
20 |
|||||
Additional paid–in capital |
82,990 |
73,713 |
|||||
Accumulated other comprehensive income |
7 |
14 |
|||||
Accumulated deficit |
(69,868) |
(66,544) |
|||||
Total stockholders' equity |
13,151 |
7,203 |
|||||
Total liabilities and stockholders' equity |
$ |
14,160 |
$ |
10,968 |
|
|||||||
For the Three Months Ended |
|||||||
|
|||||||
2021 |
2020 |
||||||
Operating expenses: |
|||||||
Research and development |
$ |
1,143 |
$ |
2,152 |
|||
General and administrative |
2,187 |
2,597 |
|||||
Total operating expenses |
3,330 |
4,749 |
|||||
Loss from operations |
(3,330) |
(4,749) |
|||||
Interest income |
6 |
20 |
|||||
Other income (expense), net |
— |
(1) |
|||||
Loss before income taxes |
(3,324) |
(4,730) |
|||||
Provision for income taxes |
— |
— |
|||||
Net loss |
(3,324) |
(4,730) |
|||||
Other comprehensive loss, net of tax |
(7) |
(34) |
|||||
Comprehensive loss |
$ |
(3,331) |
$ |
(4,764) |
|||
Loss per share: |
|||||||
Net loss per share, basic and diluted |
$ |
(0.15) |
$ |
(0.30) |
|||
Weighted average common shares outstanding: |
|||||||
Basic and diluted |
21,615,626 |
15,670,800 |
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