CAMBRIDGE, Mass., May 11, 2020 (GLOBE NEWSWIRE) — Anchiano Therapeutics Ltd. (Nasdaq: ANCN) (“Anchiano”), a preclinical biopharmaceutical company dedicated to the discovery and development of new cancer therapies designed to target the products of mutated genes that are drivers of human malignancies, today reported financial results for its first quarter ended March 31, 2020.
“We have been very active this quarter and are continuing to transform as a company. We continue to focus on developing our targeted pan-mutant RAS and PDE10/β-catenin preclinical programs addressing the genetic basis of cancer, and believe they have tremendous potential in becoming meaningful therapeutics,” said Frank Haluska, M.D., Ph.D., President and Chief Executive Officer. “We have remained nimble as a company and have been able to extend our cash runway, which we believe now extends until the first quarter next year. Our goal is to developing a potent orally bioavailable molecule to move into clinical programs.”
First Quarter 2020 Financial Results:
Cash and cash equivalents as of March 31, 2020 were approximately $14.0 million, compared to $17.6 million as of December 31, 2019. Financial resources are expected to suffice until the first quarter of 2021.
Research and development expenses for the quarter ended March 31, 2020 were approximately $1.1 million, compared to approximately $4.1 million for the same period in 2019. This decrease reflects clinical trial and drug supply manufacturing costs incurred in the first quarter of 2019 in connection with the clinical development of inodiftagene with no comparable costs in the 2020 period due to the Company’s discontinuation of its Phase 2 Codex study.
General and administrative expenses for the quarter ended March 31, 2020 were approximately $1.8 million, compared to expenses of approximately $1.3 million for the same period in 2019. The increase was primarily due to increases in professional fees, insurance and other expenses.
Financing income, net for the quarter ended March 31, 2020 was $10,000. Finance expense, net in the quarter ended March 31, 2019 was $4.5 million, mainly due to revaluation of investor warrants at fair value during a period where these could not be classified within shareholders’ equity.
Restructuring expenses in the quarter ended March 31, 2020 were approximately $0.7 million, and were comprised principally of contract termination costs associated with the discontinuance of the Codex trial and facility-related costs associated with the Company’s decision to close its offices and facilities in Israel.
Net loss for the quarter ended March 31, 2020 was approximately $3.5 million compared to approximately $9.9 million for the same period in 2019.
Anchiano is a preclinical biopharmaceutical company dedicated to the discovery and development of new cancer therapies designed to target the products of mutated genes that are drivers of human malignancies. Anchiano is developing small-molecule pan-mutant RAS inhibitors and inhibitors of PDE10 and the β-catenin pathway. For more information on Anchiano, please visit its website at www.anchiano.com.
This press release contains “forward-looking statements” that are subject to risks and uncertainties. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates” and “future” or similar expressions are intended to identify forward-looking statements. These forward- looking statements are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond the control of Anchiano, including, without limitation, the risk factors and other matters set forth in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Anchiano undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Frank Haluska, M.D., Ph.D.
President and Chief Executive Officer
Ashley R. Robinson
Managing Director LifeSci Advisors, LLC
RESULTS OF OPERATIONS (unaudited) in thousands, except per share amounts
|Three months ended
|Research and development expenses||$1,050||$4,135|
|General and administrative expenses||1,825||1,291|
|Total operating expenses||3,545||5,426|
|Financing (income) expenses, net||(10)||4,487|
|Net loss for the period||$(3,535)||$(9,913)|
|Basic and diluted net loss per share||$ (0.10)||$(0.38)|
STATEMENTS OF FINANCIAL POSITION (unaudited)
|December 31, 2019|
|Total Liabilities and Equity||$15,183||$19,755|
CASH FLOWS (unaudited)
|Three months ended March 31,|
|Net cash used in operating activities||$(3,536)||$(3,122)|
|Net cash used in investing activities||(34)||(75)|
|Net cash provided by financing activities||–||27,819|
|Net increase (decrease) in cash and cash equivalents……………………………..||$(3,570)||$24,622|