NeuroBo Pharmaceuticals Reports Third Quarter 2020 Financial Results
"Throughout the third quarter and recent weeks, we continued to evaluate a variety of potential options for bringing the NB-01 asset to the market through a different regulatory pathway, including as an orphan drug or a rare disease indication," stated
"We had continued work on preparing an Investigational New Drug (IND) application for submission to the
"We are also evaluating a number of potential opportunities that complement our multi-modal drug platforms. Our development activity is mindful of conserving financial resources. Toward that end, we believe we have the resources to fund our operations into the third quarter of 2021," concluded
Third Quarter Financial and Operating Results Highlights
Upon the merger between Gemphire Therapeutics, Inc. and
- Research and Development (R&D) Expenses were
$1.3 million for the three months endedSeptember 30, 2020 , compared to$1.2 million for the three months endedSeptember 30, 2019 . The$0.1 million increase in the third quarter of 2020 was primarily attributed to CRO termination costs of$0.6 million , offset in part by the reduction in clinical trial activity of$0.3 million , given the determination inMarch 2020 to postpone Phase 3 clinical trials of NB-01. R&D expenses during the three months endedSeptember 30, 2020 and 2019 included stock-based compensation of zero and$60,000 , respectively. - General and Administrative Expenses were
$1.8 million for the three months endedSeptember 30, 2020 , compared with$2.5 million for the three months endedSeptember 30, 2019 . The decrease of$0.7 million was primarily due to the reduction in transaction related costs that occurred during the third quarter of 2019 associated with legal, accounting and other consulting support of$1.6 million , offset by cost increases in the current quarter of$0.9 million related largely to director and officer insurance premiums of$0.4 million , public company related costs of$0.2 million , stock based compensation costs of$0.2 million , and payroll related costs of$0.1 million . Stock-based compensation costs during the three-month periods endedSeptember 30, 2020 and 2019 were$0.2 million and a credit of$(6,000) , respectively. - Net Loss for the third quarter ended
September 30, 2020 was approximately$3.1 million , or$0.19 per basic and diluted share, based on 16,427,307 weighted average common shares outstanding, compared with a net loss of approximately$3.6 million , or$0.70 per basic and diluted share, based on 5,166,812 weighted average common shares outstanding for the same period in 2019. - Cash and Cash Equivalents were
$12.4 million as ofSeptember 30, 2020 , compared with$13.9 million atDecember 31, 2019 . The Company expects that its cash position will be adequate to fund operations into the third quarter of 2021.
About
NeuroBo Pharmaceuticals was jointly founded by Dr. Roy Freeman, professor of neurology at Harvard Medical School and renowned expert in neuropathic pain, and JK BioPharma Solutions, a biotechnology consulting company, to commercialize natural product-based research into ethical medicines. In
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 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; the timing of the availability of data from NeuroBo's clinical trials; NeuroBo's plans to research, develop and commercialize its current and future product candidates, including the potential alternative pathways for NB-01; the economic feasibility of developing NB-01 under an alternative pathway including pursuant to the terms of NeuroBo's exclusive license agreement with
Contacts:
+1-917-322-2571
mcarey@rxir.com
- Tables to Follow -
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands, except share amounts and par value) |
|||||||
|
|
||||||
2020 |
2019 |
||||||
(unaudited) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash |
$ |
12,353 |
$ |
13,908 |
|||
Restricted cash |
— |
15 |
|||||
Prepaid expenses |
511 |
153 |
|||||
Other assets |
34 |
42 |
|||||
Total current assets |
12,898 |
14,118 |
|||||
Right-of-use assets |
100 |
116 |
|||||
Property and equipment, net |
167 |
200 |
|||||
Other assets |
33 |
34 |
|||||
Total assets |
$ |
13,198 |
$ |
14,468 |
|||
Liabilities and stockholders' equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
1,101 |
$ |
638 |
|||
Accrued liabilities |
2,491 |
1,422 |
|||||
Lease liability, short-term |
23 |
22 |
|||||
Total current liabilities |
3,615 |
2,082 |
|||||
Lease and other long-term liabilities |
77 |
94 |
|||||
Total liabilities |
3,692 |
2,176 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity: |
|||||||
Preferred stock, |
— |
— |
|||||
Common stock, |
17 |
16 |
|||||
Additional paid–in capital |
56,526 |
49,130 |
|||||
Accumulated other comprehensive (loss) income |
(3) |
12 |
|||||
Accumulated deficit |
(47,034) |
(36,866) |
|||||
Total stockholders' equity |
9,506 |
12,292 |
|||||
Total liabilities and stockholders' equity |
$ |
13,198 |
$ |
14,468 |
|
|||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss |
|||||||||||||
(in thousands, except share and per share amounts) |
|||||||||||||
(unaudited) |
|||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
|
||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||
Operating expenses: |
|||||||||||||
Research and development |
$ |
1,265 |
$ |
1,150 |
$ |
4,091 |
$ |
3,898 |
|||||
General and administrative |
1,795 |
2,495 |
6,110 |
4,085 |
|||||||||
Total operating expenses |
3,060 |
3,645 |
10,201 |
7,983 |
|||||||||
Loss from operations |
(3,060) |
(3,645) |
(10,201) |
(7,983) |
|||||||||
Interest income (expense), net |
6 |
24 |
34 |
(3) |
|||||||||
Other (expense) income, net |
— |
— |
(1) |
— |
|||||||||
Loss before income taxes |
(3,054) |
(3,621) |
(10,168) |
(7,986) |
|||||||||
Provision for income taxes |
— |
— |
— |
— |
|||||||||
Net loss |
(3,054) |
(3,621) |
(10,168) |
(7,986) |
|||||||||
Other comprehensive income (loss): |
|||||||||||||
Foreign currency translation gain (loss), net of |
13 |
(11) |
(15) |
(2) |
|||||||||
Total other comprehensive income (loss) |
13 |
(11) |
(15) |
(2) |
|||||||||
Comprehensive loss |
$ |
(3,041) |
$ |
(3,632) |
$ |
(10,183) |
$ |
(7,988) |
|||||
Loss per share: |
|||||||||||||
Net loss per share, basic and diluted |
$ |
(0.19) |
$ |
(0.70) |
$ |
(0.63) |
$ |
(1.55) |
|||||
Weighted average common shares outstanding: |
|||||||||||||
Basic and diluted |
16,427,307 |
5,166,812 |
16,135,000 |
5,166,812 |
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