NeuroBo Pharmaceuticals Reports Full Year 2022 Financial Results
Company Pipeline to Focus on Cardiometabolic Disease
Cash and Cash Equivalents to Fund the Company into 2024
"During 2022, we completed our planned shift in strategic direction with the acquisition of two very promising cardiometabolic assets that address the enormous nonalcoholic steatohepatitis (NASH), obesity and type 2 diabetes markets," stated
Management also noted that the Company's Board of Directors had determined to focus the Company's financial resources and attention on the development of DA-1241 for NASH and type 2 diabetes and DA-1726 for NASH and obesity. The Company intends to continue to consider licensing and acquisition opportunities with respect to its legacy programs (ANA001, NB-01, NB-02 and Gemcabene).
2022 Financial and Operating Results
- Research and Development (R&D) Expenses were
$2.8 million for the year endedDecember 31, 2022 as compared to$6.5 million for the year endedDecember 31, 2021 . The$3.8 million decrease was primarily related to reduced clinical trial activity and drug manufacturing costs of approximately$2.7 as the Company completed the ANA001 clinical trial and reduced payroll, consulting and overhead costs of approximately$1.1 million . - General and Administrative Expenses were
$8.6 million for the year endedDecember 31, 2022 , compared to$8.7 million for the year endedDecember 31, 2021 . The decrease of$0.1 million was primarily due to decreases in payroll, insurance and overhead of$0.5 million ,$0.4 million and$0.1 million , respectively, offset by increases in legal and professional fees of$0.7 million , attributed mostly to the pursuit of business opportunities, and by an increase in stock-based compensation of$0.2 million . - Net Loss for the year ended
December 31, 2022 was$14.0 million , or$ 5.43 per basic and diluted share, based on 2,573,624 weighted average shares of common stock outstanding, compared with a net loss of$15.3 million , or$19.81 per basic and diluted share, based on 771,442 weighted average shares of common stock outstanding for the year endedDecember 31, 2021 . - Cash and Cash Equivalents were
$33.4 million as ofDecember 31, 2022 , compared with$16.4 million as ofDecember 31, 2021 . The company expects its cash position will be adequate to fund operations into 2024
About
Forward Looking Statements
Certain statements in this release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements about the closing of the offering of securities. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including, without limitation, those risks associated with our ability to execute on our commercial strategy, the timeline for regulatory submissions and potential regulatory approval of our current and future product candidates, the ability to realize the benefits of the license from Dong-A, including the impact on future financial and operating results of NeuroBo; the ability to integrate the new product candidates into NeuroBo's business in a timely and cost-efficient manner; the cooperation of our contract manufacturers, clinical study partners and others involved in the development of our current and future product candidates; costs related to the license agreement, known and unknown, including costs of any litigation or regulatory actions relating to the license agreement; changes in applicable laws or regulations; effects of changes to NeuroBo's stock price on the terms of the license agreement and any future fundraising; and other risks and uncertainties described in our filings with the
Contact:
+1-917-633-6086
mmiller@rxir.com
- Tables to Follow -
Consolidated Balance Sheets (in thousands, except share amounts and par value) |
||||||
|
|
|||||
2022 |
2021 |
|||||
Assets |
||||||
Current assets: |
||||||
Cash |
$ |
33,364 |
$ |
16,387 |
||
Prepaid expenses |
168 |
197 |
||||
Total current assets |
33,532 |
16,584 |
||||
Right-of-use assets and other |
— |
105 |
||||
Property and equipment, net |
2 |
110 |
||||
Total assets |
$ |
33,534 |
$ |
16,799 |
||
Liabilities and stockholders' equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
708 |
$ |
830 |
||
Accrued liabilities |
280 |
1,301 |
||||
Warrant liabilities |
10,796 |
— |
||||
Lease liability, short-term |
— |
26 |
||||
Total current liabilities |
11,784 |
2,157 |
||||
Lease liability, long-term |
— |
45 |
||||
Total liabilities |
11,784 |
2,202 |
||||
Commitments and contingencies |
||||||
Stockholders' equity |
||||||
Preferred stock, |
— |
— |
||||
Common stock, |
25 |
1 |
||||
Additional paid–in capital |
117,520 |
96,420 |
||||
Accumulated other comprehensive income |
— |
4 |
||||
Accumulated deficit |
(95,795) |
(81,828) |
||||
Total stockholders' equity |
21,750 |
14,597 |
||||
Total liabilities and stockholders' equity |
$ |
33,534 |
$ |
16,799 |
Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share amounts) |
|||||||
For the Year Ended |
|||||||
|
|||||||
2022 |
2021 |
||||||
Operating expenses: |
|||||||
Research and development |
$ |
2,778 |
$ |
6,546 |
|||
Acquired in-process research and development |
8,210 |
— |
|||||
General and administrative |
8,640 |
8,752 |
|||||
Total operating expenses |
19,628 |
15,298 |
|||||
Loss from operations |
(19,628) |
(15,298) |
|||||
Other income (expense) |
|||||||
Interest income |
— |
14 |
|||||
Financing expense |
(2,191) |
— |
|||||
Change in fair value of warrant liabilities |
7,935 |
— |
|||||
Other expense |
(83) |
— |
|||||
Total other income |
5,661 |
14 |
|||||
Loss before income taxes |
(13,967) |
(15,284) |
|||||
Provision for income taxes |
— |
— |
|||||
Net loss |
(13,967) |
(15,284) |
|||||
Other comprehensive loss, net of tax |
(4) |
(10) |
|||||
Comprehensive loss |
$ |
(13,971) |
$ |
(15,294) |
|||
Loss per share: |
|||||||
Net loss per share, basic and diluted |
$ |
(5.43) |
$ |
(19.81) |
|||
Weighted average shares of common stock outstanding: |
|||||||
Basic and diluted |
2,573,624 |
771,422 |
|||||
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