05/18/2021 | Press release | Distributed by Public on 05/18/2021 05:33
BOSTON, May 18, 2021 /PRNewswire/ -- Stealth BioTherapeutics Corp (Nasdaq:MITO), a clinical-stage biotechnology company focused on the discovery, development, and commercialization of novel therapies for diseases involving mitochondrial dysfunction, today reported financial results for the quarter ended March 31, 2021 and announced recent business highlights.
'Our team is energized by the potential of both elamipretide and our deep pipeline of novel mitochondrial-targeted compounds to address the devastating and typically progressive disease burden associated with diseases of mitochondrial dysfunction and we are thrilled to have secured additional financial resources to expand these development efforts,' said Reenie McCarthy, Chief Executive Officer at Stealth. 'We are pleased with our progress towards alignment with the Division of Cardiology and Nephrology at the FDA on a randomized withdrawal trial of the patients remaining in our open-label extension trial, which preserves a potential near-term path to NDA submission for Barth cardiomyopathy, and we are eager to engage with DRDMG regarding our Phase 3 protocol for the group of patients with nPMD who responded to therapy in our previous primary mitochondrial myopathy trial. As we complete dosing in our fully enrolled Phase 2 trial in geographic atrophy, we are encouraged by new data correlating visual improvement in our Phase 1 trial with mitochondrial function, which further supports our Phase 2 enrollment criteria. We are expanding our development efforts both clinically and preclinically, with continued progress toward initiating trials in Friedreich's ataxia and cardiomyopathy associated with Duchenne muscular dystrophy, to explore the full potential of our candidates, including several new pipeline compounds central to our burgeoning neurology franchise.'
First Quarter 2021 and Recent Highlights
Key Upcoming Milestones
Financial Results for the quarter ended March 31, 2021
Cash Position: Cash and cash equivalents were $32.1 million at March 31, 2021, compared to $32.8 million at December 31, 2020. In May 2021, the Company received an additional commitment of $30.0 million under the Development Funding Agreement with Morningside, payable $8.0 million during the second quarter of 2021 and $22.0 million during the fourth quarter of 2021. The Company is also eligible to receive an additional $5.0 million upon submission of its Barth NDA, which is currently anticipated during the first half of 2022. The Company expects that its cash, cash equivalents and investments as of March 31, 2021, together with the $30 million in expected proceeds to be received under the amendment to the Development Funding Agreement, will be sufficient to enable it to fund its planned operations into the second quarter of 2022.
Research and Development (R&D) Expenses: R&D expenses were $6.1 million for the three months ended March 31, 2021, compared to $9.8 million for the same period in 2020.
The decrease was due to a net decrease of $1.7 million in clinical costs primarily driven by the closeout of our Primary Mitochondrial Myopathy development efforts, a decrease of $1.3 million in employee related costs due to the strategic repositioning in 2020 and a decrease of $1.0 million in manufacturing costs offset in part by a $0.2 million net increase in regulatory costs and a $0.1 million increase in preclinical costs.
General and Administrative (G&A) Expenses: G&A expenses were $5.0 million for the three months ended March 31, 2021, compared to $5.2 million for the same period in 2020. The decrease was primarily attributable to a net decrease of $0.5 million in employee and consultant related costs offset in part by $0.3 million for increased costs of insurance.
Other Income (Expense): Other income was $3.4 million for the three months ended March 31, 2021, compared to other expense of $0.5 million for the same period in 2020. Other income in 2021 consisted of a $3.7 million gain due to the change in fair value of the derivative liability offset by $0.3 million in interest expense. Other expense in 2020 consisted of a $0.6 million in interest expense offset by $0.1 million in interest income.
Net Loss: Net loss was $7.7 million, or $0.01 basic and diluted net loss per ordinary share, for the three months ended March 31, 2021, as compared to $15.5 million, or $0.04 basic and diluted net loss per ordinary share, for the same period in 2020.
Conference Call
Management will host the conference call with a slide deck presentation at 8:30 am ET to discuss the financial results and provide a general business update. The call can be accessed by dialing (877)-407-0989 (domestic) or (201)-389-0921 (international) and referencing conference ID 13719019. Management will be presenting slides and can be accessed by visiting https://www.webcast-eqs.com/register/stealthbio05182021/en. All dial-in information can be accessed by visiting the Investor & News section of Stealth's Investor website, https://investor.stealthbt.com/. A replay of the webcast will be archived on Stealth's website for 30 days following the event.
About Stealth
We are a clinical-stage biotechnology company focused on the discovery, development, and commercialization of novel therapies for diseases involving mitochondrial dysfunction. Mitochondria, found in nearly every cell in the body, are the body's main source of energy production and are critical for normal organ function. Dysfunctional mitochondria characterize a number of rare genetic diseases and are involved in many common age-related diseases, typically involving organ systems with high energy demands such as the heart, the eye, and the brain. We believe our lead product candidate, elamipretide, has the potential to treat both rare metabolic cardiomyopathies, such as Barth, Duchenne muscular dystrophy and Friedreich's ataxia, rare mitochondrial diseases entailing nuclear DNA mutations, as well as ophthalmic diseases entailing mitochondrial dysfunction, such as dry age-related macular degeneration and Leber's hereditary optic neuropathy. We are evaluating our second-generation clinical-stage candidate, SBT-272, and our new series of small molecules, SBT-550, for rare neurological disease indications following promising preclinical data. We have optimized our discovery platform to identify novel mitochondria-targeted compounds which may be nominated as therapeutic product candidates or utilized as mitochondria-targeted vectors to deliver other compounds to mitochondria.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those regarding Stealth BioTherapeutics' plans, strategies and expectations for its preclinical and clinical advancement of its drug development programs, including its ongoing clinical trials of elamipretide and planned clinical trial of SBT-272; its plans for the potential submission of an NDA; its expectations regarding regulatory interactions, including its belief that the existing data and the data from the withdrawal protocol may provide sufficient evidence to support NDA review; the potential benefits of Stealth BioTherapeutics' product candidates; its key milestones for 2021 and 2022; its plans regarding future data presentations; and its financial guidance regarding the period in which it will have capital available to fund its operations. Statements that are not historical facts, including statements about Stealth BioTherapeutics' beliefs, plans and expectations, are forward-looking statements. The words 'anticipate,' 'expect,' 'hope,' 'plan,' 'potential,' 'possible,' 'will,' 'believe,' 'estimate,' 'intend,' 'may,' 'predict,' 'project,' 'would' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Stealth BioTherapeutics may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements as a result of known and unknown risks, uncertainties and other important factors, including: Stealth BioTherapeutics' ability to obtain additional funding and to continue as a going concern; the impact of the COVID-19 pandemic; the ability to successfully demonstrate the efficacy and safety of Stealth BioTherapeutics' product candidates and future product candidates; the preclinical and clinical results for Stealth BioTherapeutics' product candidates, which may not support further development and marketing approval; the potential advantages of Stealth BioTherapeutics' product candidates; the content and timing of decisions made by the FDA, the EMA or other regulatory authorities, investigational review boards at clinical trial sites and publication review bodies, which may affect the initiation, timing and progress of preclinical studies and clinical trials of Stealth BioTherapeutics product candidates; Stealth BioTherapeutics' ability to obtain and maintain requisite regulatory approvals and to enroll patients in its planned clinical trials; unplanned cash requirements and expenditures; competitive factors; Stealth BioTherapeutics' ability to obtain, maintain and enforce patent and other intellectual property protection for any product candidates it is developing; and general economic and market conditions. These and other risks are described in greater detail under the caption 'Risk Factors' included in the Stealth BioTherapeutics' most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission ('SEC'), as well as in any future filings with the SEC. Forward-looking statements represent management's current expectations and are inherently uncertain. Except as required by law, Stealth BioTherapeutics does not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.
Investor Relations
Stern Investor Relations
Janhavi Mohite, 212-362-1200
[email protected]
STEALTH BIOTHERAPEUTICS CORP |
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Condensed Consolidated Balance Sheets |
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(in thousands) |
||||
(unaudited) |
||||
|
|
March 31, |
|
December 31, |
|
|
2021 |
|
2020 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ 32,060 |
|
$ 32,787 |
Prepaid expenses and other current assets |
|
1,927 |
|
2,253 |
Total current assets |
|
33,987 |
|
35,040 |
Property and equipment, net |
|
92 |
|
106 |
Deferred financing costs and other non-current assets |
|
702 |
|
702 |
Total assets |
|
$ 34,781 |
|
$ 35,848 |
Liabilities and shareholders' deficit |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ 4,620 |
|
$ 3,526 |
Accrued expenses and other current liabilities |
|
4,123 |
|
7,024 |
Accrued interest payable |
|
227 |
|
1,499 |
Current portion of debt |
|
7,236 |
|
9,000 |
Total current liabilities |
|
16,206 |
|
21,049 |
Long-term deferred rent, less current portion |
|
11 |
|
16 |
Development derivative liability - related party |
|
30,643 |
|
25,155 |
Total liabilities |
|
46,860 |
|
46,220 |
Total shareholders' deficit |
|
(12,079) |
|
(10,372) |
Total liabilities and shareholders' deficit |
|
$ 34,781 |
|
$ 35,848 |
STEALTH BIOTHERAPEUTICS CORP |
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Condensed Consolidated Statements of Operations |
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(in thousands, except share and per share data) |
||||
(unaudited) |
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|
|
Three months ending March 31, |
||
|
|
2021 |
|
2020 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development |
|
$ 6,099 |
|
$ 9,847 |
General and administrative |
|
4,979 |
|
5,180 |
Total operating expenses |
|
11,078 |
|
15,027 |
Loss from operations |
|
(11,078) |
|
(15,027) |
Other income (expense): |
|
|
|
|
Change in fair value of derivative liability |
|
3,688 |
|
- |
Interest income |
|
1 |
|
123 |
Interest expense and other |
|
(300) |
|
(636) |
Total other income (expense) |
|
3,389 |
|
(513) |
Net loss attributable to ordinary shareholders |
|
$ (7,689) |
|
$ (15,540) |
Net loss per share attributable to ordinary shareholders - basic and diluted |
|
$ (0.01) |
|
$ (0.04) |
Weighted average ordinary shares used in net loss per share attributable to ordinary shareholders - basic and diluted |
|
652,807,323 |
|
436,720,810 |
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SOURCE Stealth BioTherapeutics Inc.