NeuroBo Pharmaceuticals Reports Full Year 2020 Financial Results and Provides Corporate Strategic Update
"In
"Importantly, we significantly bolstered our balance sheet with the
Full Year 2020 Financial and Operating Results Highlights
Upon the merger between
The following highlights, therefore, represent the combined operations of both companies for the year ended
In
- Research and Development (R&D) Expenses were approximately
$4.5 million for the year endedDecember 31, 2020 , as compared to approximately$5.3 million for the year endedDecember 31, 2019 . The$0.8 million decrease was primarily related to the overall reduction of clinical trial activity, as Contract Research Organization (CRO) fees, supply and personnel related costs decreased by approximately$2.5 million , offset in part by approximately$1.3 million in CRO termination costs associated with theMarch 2020 determination to postpone Phase 3 clinical trials of NB-01 in the amount of approximately$1.3 million , and$0.4 million for the development of Gemcabene, which was acquired in NeuroBo's 2019 business combination withGemphire Therapeutics, Inc. Acquired In-process Research and Development Expenses (IPR&D) for the year endedDecember 31, 2020 amounted to$17.3 million and was attributable to research and development projects of niclosamide which were in-process at the date NeuroBo acquired ANA. Acquired in-process research and development expenses for the year endedDecember 31, 2019 amounted to$12.2 million and was attributable to research and development projects of Gemphire, which were in-process upon Gemphire's merger with NeuroBo. Current accounting standards require that the fair value of IPR&D with no alternative future use be charged to expense on the acquisition date.- General and Administrative Expenses were
$7.8 million for the year endedDecember 31, 2020 , compared to$2.7 million for the year endedDecember 31, 2019 . The increase of$5.1 million was primarily due to the costs associated with operating as a public company when compared to the comparable prior year. The cost increases in 2020 included legal costs of$1.6 million ,$1.5 million in director and officer and other insurance premiums,$0.8 million in accounting and auditing fess,$0.6 million in board of director and other public company costs and$0.6 million in stock-based compensation. - Net Loss for the year ended
December 31, 2020 was$29.7 million , or$1.83 per basic and diluted share, based on 16,217,339 weighted average common shares outstanding, compared with a net loss of$21.3 million , or$4.08 per basic and diluted share, based on 5,224,178 weighted average common shares outstanding for the year endedDecember 31, 2019 . - Cash and Cash Equivalents were
$10.1 million as ofDecember 31, 2020 , compared with$13.9 million as ofDecember 31, 2019 . Operating at its level of scientific activity during the year endedDecember 31, 2020 , 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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|
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2020 |
2019 |
||||||
Assets |
|||||||
Current assets: |
|||||||
Cash |
$ |
10,089 |
$ |
13,908 |
|||
Restricted cash |
— |
15 |
|||||
Prepaid expenses |
546 |
153 |
|||||
Other assets |
48 |
42 |
|||||
Total current assets |
10,683 |
14,118 |
|||||
Right-of-use assets and other |
130 |
150 |
|||||
Property and equipment, net |
155 |
200 |
|||||
Total assets |
$ |
10,968 |
$ |
14,468 |
|||
Liabilities and stockholders' equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
2,575 |
$ |
638 |
|||
Accrued liabilities |
1,096 |
1,422 |
|||||
Lease liability, short-term |
24 |
22 |
|||||
Total current liabilities |
3,695 |
2,082 |
|||||
Lease liability, long-term |
70 |
94 |
|||||
Total liabilities |
3,765 |
2,176 |
|||||
Commitments and contingencies (Notes 4, 5, 6 and 14) |
|||||||
Stockholders' equity |
|||||||
Preferred stock, |
— |
— |
|||||
Common stock, |
20 |
16 |
|||||
Additional paid–in capital |
73,713 |
49,130 |
|||||
Accumulated other comprehensive income |
14 |
12 |
|||||
Accumulated deficit |
(66,544) |
(36,866) |
|||||
Total stockholders' equity |
7,203 |
12,292 |
|||||
Total liabilities and stockholders' equity |
$ |
10,968 |
$ |
14,468 |
NeuroBo Pharmaceuticals, Inc. |
||||||
For the Year Ended |
||||||
|
||||||
2020 |
2019 |
|||||
Operating expenses: |
||||||
Research and development |
$ |
4,531 |
$ |
5,324 |
||
Acquired in–process research and development |
17,339 |
12,151 |
||||
General and administrative |
7,846 |
2,701 |
||||
Total operating expenses |
29,716 |
20,176 |
||||
Loss from operations |
(29,716) |
(20,176) |
||||
Loss on note extinguishment |
— |
(1,114) |
||||
Interest income (expense), net |
39 |
(22) |
||||
Other expense, net |
(1) |
— |
||||
Loss before income taxes |
(29,678) |
(21,312) |
||||
Provision for income taxes |
— |
— |
||||
Net loss |
(29,678) |
(21,312) |
||||
Other comprehensive income, net of tax |
2 |
10 |
||||
Comprehensive loss |
$ |
(29,676) |
$ |
(21,302) |
||
Loss per share: |
||||||
Net loss per share, basic and diluted |
$ |
(1.83) |
$ |
(4.08) |
||
Weighted average common shares outstanding: |
||||||
Basic and diluted |
16,217,339 |
5,224,178 |
||||
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