MARLBOROUGH, Mass.,
May 10, 2018 /PRNewswire/ -- RXi
Pharmaceuticals Corporation (NASDAQ: RXII) a biotechnology company
developing the next generation of immuno-oncology therapeutics
based on its proprietary self-delivering RNAi (sd-rxRNA®)
therapeutic platform today reported its financial results for the
first quarter ended March 31, 2018
and provided a business update.
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"With the bulk of the clinical activities for our Dermatology
and Ophthalmology studies behind us, we expect in the next 2 to 3
quarters to reduce our cash burn per quarter by $0.5 million - or about 20% - from $2.5 million to about $2
million," said Dr. Geert
Cauwenbergh, President and CEO of RXi Pharmaceuticals. He
further added that, "The final review of the results of our Phase 2
clinical study with Samcyprone™ in cutaneous warts is almost
complete, and these study results will be presented as a poster
during the upcoming International Investigative Dermatology meeting
on May 18, 2018. We expect that the
availability of this clinical data will be helpful in the
partnering outreach for our dermatology franchise, and we expect to
start the formal partnering process in the next few weeks. Against
the back-drop of several partnerships in IO and ACT that we have
already announced and expect to expand even further in the current
quarter, we feel that RXi is set for some exciting events in the
coming few months."
The Company will host a conference call today at 4:30 p.m.
EDT to discuss financial results and provide an update on the
Company. The webcast link will be available under the "Investors –
Event Calendar" section of the Company's
website, www.rxipharma.com. The event may also be accessed by
dialing toll-free in the United States and Canada:
+1 844-376-4678. International participants may access the
event by dialing: +1 209-905-5958. An archive of the webcast will
be available on the Company's website approximately two hours after
the presentation.
Select First Quarter 2018 Financial Highlights
Cash Position
At March 31, 2018, the Company had
cash of $2.6 million as compared with
$3.6 million at December 31, 2017.
On August 8, 2017, the Company
entered into a purchase agreement with Lincoln Park Capital Fund,
LLC ("LPC"), pursuant to which the Company has the right to sell to
LPC up to $15 million in shares of
the Company's common stock, subject to certain limitations and
conditions set forth therein, over the 30-month term of the
purchase agreement. The Company has sold a total of 420,000 shares
of common stock to LPC for net proceeds of approximately
$1.4 million under the purchase
agreement.
On April 9, 2018, the Company entered into a securities
purchase agreement with certain institutional and accredited
investors relating to the offering and sale of
1,510,604 shares of the Company's common stock at a purchase
price of $3.15 per share (the
"Offering"). Concurrently with the Offering, the Company also
commenced a private placement, whereby it issued and sold warrants
exercisable for a total of 1,132,953 shares of common stock, which
represents 75% of the shares of common stock sold in the Offering,
with a purchase price per share of $0.125 per underlying warrant share and with an
exercise price of $3.15 per share
(the "Private Placement"). Assuming the warrants are not exercised,
net proceeds to the Company from the Offering and Private Placement
were approximately $4.1 million after
deducting placement agent fees and estimated Offering and Private
Placement expenses.
Revenues
Revenues for the quarter ended March 31,
2018 were $23,000 and related
to the work performed by the Company as a sub-awardee under the
government grant awarded to our collaborator BioAxone Biosciences,
Inc. from the National Institute of Neurological Disorders and
Stroke. The Company had no revenues during the quarter ended
March 31, 2017.
Research and Development Expenses
Research and development expenses for the quarter ended
March 31, 2018 were $1.4 million, as compared with $1.3 million for the quarter ended March 31, 2017. The increase was primarily due to
increases in lab supply purchases and manufacturing fees for the
Company's immuno-oncology program.
Acquired In-process Research and Development
Expense
The Company did not have acquired in-process research and
development expense for the quarter ended March 31, 2018. The Company recorded $4.6 million of acquired in-process research and
development expense for the acquisition of MirImmune Inc. during
the quarter ended March 31, 2017. The
expense related to the fair value of consideration given in the
acquisition of MirImmune, which included transaction costs,
liabilities assumed and cancellation of notes receivable, and the
deferred tax impact of the acquisition.
General and Administrative Expenses
General and administrative expense for the quarter ended
March 31, 2018 was $0.9 million, as compared with $1.1 million for the quarter ended March 31, 2017. The decrease was primarily due to
decreases in professional fees for legal-related services and
payroll-related expenses as a result of a decrease in
headcount.
Income Tax
There was no income tax expense or benefit during the three
months ended March 31, 2018. For the three months ended
March 31, 2017, the Company recognized an income tax benefit
of $1,621,000 due to the tax-related
impact of the Company's acquisition of MirImmune in January 2017.
Net Loss
Net loss for the quarter ended March 31,
2018 was $2.2 million,
compared with $5.5 million for the
quarter ended March 31, 2017. The
decrease was primarily due to in-process research and development
expense and income tax benefit recorded during the prior year
quarter related to the Company's acquisition of MirImmune, as
discussed above.
Select First Quarter 2018 and Recent Corporate
Highlights
Select Business and Corporate Highlights
Immuno-Oncology
On April 16, 2018, the Company
announced that research conducted using its self-delivering RNAi
platform in the field of immunotherapy to treat cancer was
published in Molecular Therapy, a leading peer-reviewed
journal.
In this paper, scientists demonstrate the potential of improving
therapy with patient-derived tumor infiltrating lymphocytes (TILs)
by treating with RXi's novel sd-rxRNA compound which specifically
targets PD-1. Targeting the PD-1/PD-L1 axis can enhance the ex
vivo expansion rate and in vivo longevity and
functionality of these T-cells and thereby have the potential to
improve Adoptive Cell Therapy (ACT) outcomes in cancer
patients. The sd-rxRNA compounds are based on the proprietary
therapeutic platform developed and owned by RXi Pharmaceuticals and
are ideally suited to reprogram immune cells used in various forms
of ACT.
"Self-Delivering RNAi (sd-rxRNA®) Targeting PD-1 using Adoptive
Cell Therapy Approach for the Treatment of Malignant Melanoma" may
be accessed on Molecular Therapy's website:
http://www.cell.com/molecular-therapy-family/molecular-therapy/abstract/S1525-0016(18)30172-2
About RXi Pharmaceuticals
RXi Pharmaceuticals Corporation (NASDAQ: RXII) is a
biotechnology company developing the next generation of
immuno-oncology therapeutics based on its self-delivering RNAi
(sd-rxRNA®) therapeutic platform. The Company's discovery and
research efforts are focused on developing sd-rxRNA therapeutic
compounds to be used with an Adoptive Cell Transfer (ACT) approach.
This process uses immune cells, such as T-lymphocytes that are
isolated from the patient or retrieved from allogeneic immune cell
banks, and then expanded and in some cases processed to express
tumor-binding receptors. Our approach introduces a new and
important step in ex-vivo processing of the immune
cells where sd-rxRNA is used to eliminate the expression of
immunosuppressive receptors or proteins from the therapeutic immune
cells, making them less sensitive to tumor resistance mechanisms
and thus improving their ability to destroy the tumor cells.
Essentially, we aim to maximize the power of our sd-rxRNA
therapeutic compounds by weaponizing therapeutic immune effector
cells to attack cancer and ultimately provide patients battling
terminal cancers with a powerful new treatment option that goes
beyond current treatment modalities. For additional
information, visit the Company's
website, www.rxipharma.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about: our ability to successfully develop RXI-109, Samcyprone™,
RXI-762, RXI-804 and our other product candidates (collectively
"our product candidates"); the future success of our clinical
trials with our product candidates; the timing for the commencement
and completion of clinical trials; our ability to enter into
strategic partnerships and the future success of these strategic
partnerships; and our ability to deploy our sd-rxRNA® technology
through partnerships, as well as the prospects of these
partnerships to provide positive returns. Forward-looking
statements about expectations and development plans of RXi's
product candidates and partnerships involve significant risks and
uncertainties, including the following: risks that we may not be
able to successfully develop and commercialize our product
candidates; risks that product development and clinical studies may
be delayed, not proceed as planned and/or be subject to significant
cost over-runs; risks related to the development and
commercialization of products by competitors; risks related to our
ability to control the timing and terms of collaborations with
third parties; and risks that other companies or organizations may
assert patent rights preventing us from developing or
commercializing our product candidates. Additional risks are
detailed in our most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q under the caption "Risk
Factors." Readers are urged to review these risk factors and to not
act in reliance on any forward-looking statements, as actual
results may differ from those contemplated by our forward-looking
statements. RXi does not undertake to update forward-looking
statements to reflect a change in its views, events or
circumstances that occur after the date of this release.
Contact
RXi Pharmaceuticals Corporation
Tamara McGrillen
508-929-3646
RXi
PHARMACEUTICALS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except share and per share
data) (Unaudited)
|
|
|
For the
|
|
For the
|
Quarter
Ended
|
|
Quarter
Ended
|
March 31,
2018
|
|
March 31,
2017
|
Revenues
|
$
|
23
|
|
$
|
—
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
1,361
|
|
1,347
|
Acquired in-process
research and development
|
—
|
|
4,611
|
General and
administrative
|
901
|
|
1,123
|
Total
operating expenses
|
2,262
|
|
7,081
|
Operating
loss
|
(2,239)
|
|
(7,081)
|
Total other (expense)
income, net
|
—
|
|
—
|
Loss before income
taxes
|
(2,239)
|
|
(7,081)
|
Income tax
benefit
|
—
|
|
1,621
|
Net loss
|
$
|
(2,239)
|
|
$
|
(5,460)
|
|
|
|
|
Net loss per common
share: Basic and diluted
|
$
|
(0.90)
|
|
$
|
(2.65)
|
Weighted average
common shares: Basic and diluted
|
2,494,464
|
|
2,057,114
|
RXi
PHARMACEUTICALS CORPORATION
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(Amounts in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
2,606
|
|
$
3,581
|
|
Restricted
cash
|
50
|
|
50
|
|
Prepaid expenses and
other current assets
|
206
|
|
201
|
|
Total current
assets
|
2,862
|
|
3,832
|
|
Property and
equipment, net
|
228
|
|
248
|
|
Other
assets
|
—
|
|
18
|
|
Total
assets
|
$
3,090
|
|
$
4,098
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
521
|
|
$
511
|
|
Accrued
expenses
|
2,002
|
|
1,754
|
|
Total current
liabilities
|
2,523
|
|
2,265
|
|
Total stockholders'
equity
|
567
|
|
1,833
|
|
Total liabilities and
stockholders' equity
|
$
3,090
|
|
$
4,098
|
|
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SOURCE RXi Pharmaceuticals Corporation