WALTHAM, Mass., May 07, 2020 (GLOBE NEWSWIRE) -- Entasis Therapeutics Holdings Inc. (NASDAQ: ETTX), a clinical-stage biopharmaceutical company focused on the discovery and development of novel antibacterial products, announced today its first quarter 2020 financial results and provided a business update.
“We are very pleased with the continued progress made during the first quarter of 2020, despite the COVID-19 pandemic’s disruptions to clinical trials, the capital markets, and many other facets of our industry,” commented Manos Perros, President and Chief Executive Officer of Entasis Therapeutics. “Our private placement with Innoviva, Inc. validates the hard work, resilience and innovative pipeline of our organization. With the proceeds, we are advancing our pipeline of novel Gram-negative antibacterial product candidates and working to complete ATTACK (Acinetobacter Treatment Trial Against Colistin), our global Phase 3 registration trial evaluating a fixed-dose combination of sulbactam and durlobactam (SUL-DUR) against Acinetobacter baumannii infections. We continue to monitor the effects of the COVID-19 pandemic on our operations and are taking action to mitigate their impact on our two Phase 3 data readouts in 2021.”
First Quarter 2020 and Recent Highlights
First Quarter 2020 Financial Results
The Company reported a net loss of $15.3 million for the quarter ended March 31, 2020, compared to a net loss of $12.9 million for the quarter ended March 31, 2019. The increase in net loss was primarily due to a decrease in other income and increases in research and development and general and administration expenses.
Research and development expenses were $11.6 million for the quarter ended March 31, 2020, compared to $11.0 million for the quarter ended March 31, 2019. The increase of $0.6 million was primarily due to increases in costs associated with higher headcount offset by decreases in preclinical expenses.
General and administrative expenses were $3.8 million for the quarter ended March 31, 2020, compared to $3.2 million for the quarter ended March 31, 2019. The increase was primarily due to costs associated with higher headcount.
As of March 31, 2020, cash, cash equivalents and short-term investments were $27.5 million, compared to $41.0 million as of December 31, 2019. The Company believes its cash position as of March 31, 2020 provides a cash runway into the fourth quarter of 2020. Including the funding from Innoviva, the Company forecasts operating capital into the middle of 2021.
About Entasis
Entasis is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel antibacterial products to treat serious infections caused by multidrug-resistant Gram-negative bacteria. Entasis’ pathogen-targeted design platform has produced a pipeline of product candidates, including sulbactam-durlobactam (targeting Acinetobacter baumannii infections), zoliflodacin (targeting Neisseria gonorrhoeae infections), ETX0282CPDP (targeting Enterobacteriaceae infections) and ETX0462 (targeting Pseudomonas infections). For more information, visit www.entasistx.com.
Entasis Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on Entasis’ expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from these forward-looking statements. Many factors may cause differences between current expectations and actual results, including unexpected safety or efficacy data observed during non-clinical or clinical studies, clinical site activation rates or clinical trial enrollment rates that are lower than expected and changes in expected or existing competition, changes in the regulatory environment, failure of Entasis’ collaborators to support or advance collaborations or product candidates and unexpected litigation or other disputes. Many of these factors are beyond Entasis’ control. These and other risks and uncertainties are described more fully in the Entasis’ filings with the U.S. Securities and Exchange Commission, including the section titled “Risk Factors” contained therein. Forward-looking statements contained in this announcement are made as of this date, and except as required by law, Entasis assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.
Company Contact
Kyle Dow
Entasis Therapeutics
(781) 810-0114
kyle.dow@entasistx.com
Investor Relations Contacts
Tram Bui / James Salierno
The Ruth Group
(646) 536-7035 / 7028
tbui@theruthgroup.com
jsalierno@theruthgroup.com
Media Contact
Kirsten Thomas
The Ruth Group
(508) 280-6592
kthomas@theruthgroup.com
(Financial Tables Follow)
Entasis Therapeutics Holdings Inc. | ||||||||
Consolidated Statements of Operations | ||||||||
Unaudited | ||||||||
(in thousands, except share and per share data) | ||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Operating expenses: | ||||||||
Research and development | $ | 11,623 | $ | 11,002 | ||||
General and administrative | 3,780 | 3,189 | ||||||
Total operating expenses | 15,403 | 14,191 | ||||||
Loss from operations | (15,403 | ) | (14,191 | ) | ||||
Other income: | ||||||||
Grant income | 13 | 829 | ||||||
Interest income | 124 | 492 | ||||||
Total other income | 137 | 1,321 | ||||||
Loss before income taxes | (15,266 | ) | (12,870 | ) | ||||
Provision for income taxes | — | 71 | ||||||
Net loss | $ | (15,266 | ) | $ | (12,941 | ) | ||
Net loss per share—basic and diluted | $ | (1.15 | ) | $ | (0.99 | ) | ||
Weighted average common stock outstanding—basic and diluted | 13,291,563 | 13,126,595 | ||||||
Entasis Therapeutics Holdings Inc. | ||||||
Condensed Consolidated Balance Sheets | ||||||
Unaudited | ||||||
(in thousands) | ||||||
March 31, | December 31, | |||||
2020 | 2019 | |||||
Cash, cash equivalents and short-term investments | $ | 27,466 | $ | 40,996 | ||
Other assets | 7,194 | 10,038 | ||||
Total assets | $ | 34,660 | $ | 51,034 | ||
Total liabilities | $ | 6,956 | $ | 8,877 | ||
Total stockholders' equity | 27,704 | 42,157 | ||||
Total liabilities and stockholders’ equity | $ | 34,660 | $ | 51,034 | ||