SOUTH SAN FRANCISCO, Calif., May 11, 2018 (GLOBE NEWSWIRE) -- Denali Therapeutics Inc. (NASDAQ:DNLI), a biopharmaceutical company developing a broad portfolio of therapeutic candidates for neurodegenerative diseases, today reported financial results for the first quarter ended March 31, 2018.

First Quarter 2018 Financial Results

For the three months ended March 31, 2018, Denali reported a net loss of $23.7 million, compared with a net loss for the three months ended March 31, 2017 of $21.3 million.

Collaboration Revenue was $0.6 million for the three months ended March 31, 2018, with no revenue recognized for the three months ended March 31, 2017. The increase was due to revenue recognized under the Option and Collaboration Agreement with Takeda Pharmaceutical Company Limited, which was entered into in January 2018.

Total research and development expenses were $20.8 million for the three months ended March 31, 2018 compared to $18.5 million for the three months ended March 31, 2017, including non-cash stock-based compensation of $1.7 million and $0.5 million in the first quarter of 2018 and 2017, respectively. The increase in total research and development expenses of $2.3 million was primarily attributable to an increase in personnel related expenses, including stock-based compensation, and an increase in lab consumable costs and facilities related expenses. The main drivers of these increases are an increase in research and development headcount and the increased value of Denali's common stock.

General and administrative expenses were $5.6 million for the three months ended March 31, 2018 compared to $3.3 million for the three months ended March 31, 2017, including non-cash stock-based compensation of $1.2 million and $0.2 million in the first quarter of 2018 and 2017, respectively. The increase in total general and administrative expenses of $2.3 million was primarily attributable to an increase in personnel related expenses, including stock-based compensation, and an increase in legal and professional service expenses. The main drivers of these increases are an increase in general and administrative headcount and the increased value of Denali's common stock, as well as the increased professional services required as a public company.

Cash, cash equivalents, and marketable securities were $592.8 million as of March 31, 2018, compared to $467.0 million as of December 31, 2017.  The increase of $125.8 million was primarily attributable to $155.0 million in cash received related to the Option and Collaboration Agreement and Stock Purchase Agreement with Takeda.

About Denali Therapeutics

Denali is a biopharmaceutical company developing a broad portfolio of therapeutic candidates for neurodegenerative diseases. Denali pursues new treatments by rigorously assessing genetically validated targets, engineering delivery across the blood-brain barrier and guiding development with biomarker monitoring to demonstrate target engagement and select patients. Denali is based in South San Francisco. For additional information, please visit www.denalitherapeutics.com.

Denali Therapeutics Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

  
 Three Months Ended
March 31,
 2018 2017
Collaboration revenue$641  $ 
Operating expenses:   
Research and development20,819  18,470 
General and administrative5,570  3,274 
Total operating expenses26,389  21,744 
Loss from operations(25,748) (21,744)
Interest income, net2,070  424 
Net loss$(23,678) $(21,320)
Net loss per share, basic and diluted$(0.26) $(2.36)
Weighted average number of shares outstanding, basic and diluted89,560,576  9,017,425 
      

Denali Therapeutics Inc.
Condensed Consolidated Balance Sheet Data
(Unaudited)
(In thousands)

    
 March 31,
2018
 December 31,
2017
Assets   
Current assets:   
Cash and cash equivalents$44,001  $218,375 
Short-term marketable securities329,401  187,851 
Prepaid expenses and other current assets4,020  3,381 
Total current assets377,422  409,607 
Long-term marketable securities219,406  60,750 
Property and equipment, net14,860  14,923 
Other non-current assets2,265  1,441 
Total assets$613,953  $486,721 
Liabilities, convertible preferred stock and stockholders’ equity   
Current liabilities:   
Accounts payable$1,377  $2,716 
Accrued liabilities4,425  5,364 
Accrued compensation1,994  5,166 
Contract Liability8,434   
Deferred rent874  855 
Other current liabilities63  63 
Total current liabilities17,167  14,164 
Contract liability, less current portion51,519   
Deferred rent, less current portion6,051  6,294 
Other non-current liabilities188  467 
Total liabilities74,925  20,925 
Total stockholders’ equity539,028  465,796 
Total liabilities and stockholders’ equity$613,953  $486,721 
        

Contact:
Morgan Warners
(202) 337-0808
mwarners@gpg.com