Protara Therapeutics Announces First Quarter 2020 Financial Results and Business Overview
May 13 2020 - 7:00AM
Protara Therapeutics, Inc. (Nasdaq: TARA), a clinical stage company
developing treatments for rare and specialty diseases with
significant unmet needs, today announced financial results for the
first quarter ended March 31, 2020.
“We remain keenly focused on executing on our
core mission to deliver effective therapies for rare and specialty
diseases amidst these unprecedented times,” Jesse Shefferman, Chief
Executive Officer of Protara Therapeutics. “With solid financial
footing and a strong commitment to the patients we serve, we
believe we are well positioned to continue to advance our promising
portfolio of late-stage product candidates. We look forward to
providing updates on these efforts in the coming months.”
Pipeline Overview
TARA-002
- TARA-002, Protara’s lead product candidate, is an
investigational cell based therapy based on the broad
immunostimulant OK-432, which is approved in Japan and Taiwan for
lymphangiomas, including lymphatic malformations (LMs), which are
rare, typically congenital, malformations of the lymphatic
vasculature. The Company plans to initially pursue development of
TARA-002 for the treatment of LMs and is also evaluating the
potential of TARA-002 in oncologic indications.
IV Choline Chloride
- Protara is developing intravenous (IV) Choline Chloride, a
Phase 3-ready investigational phospholipid substrate replacement
therapy for patients receiving parenteral nutrition who have
intestinal failure associated liver disease (IFALD). IV Choline
Chloride has been granted Orphan Drug Designation by the U.S. Food
and Drug Administration for this indication.
Corporate Name Change
- The Company recently announced a corporate name change to
Protara Therapeutics from ArTara Therapeutics. The Company’s shares
will continue trading on the Nasdaq Capital Market under the
ticker symbol “TARA.”
Business Impact of COVID-19
- Protara is actively monitoring the rapidly evolving COVID-19
pandemic and maintaining operations in accordance with guidance
from health authorities and government agencies.
The Company has experienced limited impact on its
pre-clinical, clinical and business activities but will continue to
monitor the situation and take steps to mitigate any potential
impact.
First Quarter 2020 Results from
Operations
- The Company reported a net loss of $10.1 million for the first
quarter of 2020 which included approximately $2.8 million of
stock-based compensation expense, and approximately $1.0 million in
other non-recurring merger related expenses.
- As of March 31, 2020, cash, cash equivalents and restricted
cash were $36.1 million.
A Form 10-Q containing the full financial statements was filed
this morning and is available for viewing on the Company’s website
at www.Protaratx.com or www.sec.gov.
About Protara Therapeutics,
Inc.
Protara is committed to identifying and
advancing transformative therapies for people with rare and
specialty diseases who have limited treatment options. Protara’s
portfolio includes its lead program, TARA-002, an investigational
cell therapy being developed for the treatment of lymphatic
malformations, and intravenous (IV) Choline Chloride, an
investigational phospholipid substrate replacement therapy for the
treatment of intestinal failure associated liver disease (IFALD).
For more information, visit www.protaratx.com.
Forward-Looking Statements
Statements contained in this press release
regarding matters that are not historical facts are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Because such statements
are subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Such statements include, but are not limited to,
statements regarding Protara’s business strategy, Protara’s
development plans for its product candidates, Protara’s financial
footing and the impact of the COVID-19 pandemic on Protara’s
business and clinical programs. Risks that contribute to the
uncertain nature of the forward-looking statements include:
uncertainties related to Protara’s development programs, including
the initiation and completion of non-clinical studies and clinical
trials and the timing of required filings with the FDA and other
regulatory agencies; uncertainties related to the actual impacts
and length of such impacts caused by the COVID-19 pandemic; having
to use cash in ways or on timing other than expected; and the
impact of market volatility on cash reserves. These and other risks
and uncertainties are described more fully under the caption "Risk
Factors" and elsewhere in Protara's filings and reports with the
United States Securities and Exchange Commission. All
forward-looking statements contained in this press release speak
only as of the date on which they were made. Protara undertakes no
obligation to update such statements to reflect events that occur
or circumstances that exist after the date on which they were
made.
Company Contact:
Blaine Davis Protara Therapeutics Blaine.Davis@protaratx.com
646-844-0337
|
PROTARA THERAPEUTICS, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
As of |
|
March 31, 2020 |
|
December 31, 2019 |
|
(unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
36,068,736 |
|
|
$ |
564,124 |
|
Restricted cash |
|
50,000 |
|
|
|
- |
|
Deferred offering costs |
|
- |
|
|
|
121,712 |
|
Prepaid expenses and other current assets |
|
3,562,822 |
|
|
|
78,057 |
|
Total current assets |
|
39,681,558 |
|
|
|
763,893 |
|
|
|
|
|
Non-current assets: |
|
|
|
Property and equipment, net |
|
655,783 |
|
|
|
458,591 |
|
Right-of-use asset |
|
391,519 |
|
|
|
- |
|
Goodwill |
|
29,367,213 |
|
|
|
- |
|
Total assets |
$ |
70,096,073 |
|
|
$ |
1,222,484 |
|
|
|
|
|
Liabilities and Stockholders' (Deficit)
Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,649,602 |
|
|
$ |
715,653 |
|
Accrued expenses |
|
995,588 |
|
|
|
2,634,790 |
|
Short-term debt |
|
1,297,777 |
|
|
|
- |
|
Right-of-use liability, current |
|
24,727 |
|
|
|
- |
|
Total current liabilities |
|
4,967,694 |
|
|
|
3,350,443 |
|
|
|
|
|
Non-current liabilities: |
|
|
|
Right-of-use liability, long-term |
|
386,538 |
|
|
|
- |
|
Total liabilities |
|
5,354,232 |
|
|
|
3,350,443 |
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
Stockholders' Equity (Deficit) |
|
|
|
Preferred Stock, $0.001 par value, authorized 10,000,000
shares: |
|
|
|
|
|
|
|
Series 1 Convertible Preferred Stock, 3,880 and 0 shares authorized
at March 31, 2020 |
|
|
|
and December 31, 2019, respectively, 3,879 and 0 shares issued and
outstanding as of |
|
|
|
March 31, 2020 and December 31, 2019, respectively. |
|
4 |
|
|
|
- |
|
Common Stock, $0.001 par value, authorized 100,000,000 shares: |
|
|
|
Common Stock, 5,843,203 and 2,627,533 common shares issued and
outstanding as of |
|
|
|
March 31, 2020 and December 31, 2019, respectively. |
|
5,843 |
|
|
|
2,628 |
|
Additional Paid in Capital |
|
87,577,911 |
|
|
|
10,651,073 |
|
Accumulated Deficit |
|
(22,841,917 |
) |
|
|
(12,781,660 |
) |
Total
Stockholders' Equity (Deficit) |
|
64,741,841 |
|
|
|
(2,127,959 |
) |
Total Liabilities and Stockholders' Equity
(Deficit) |
$ |
70,096,073 |
|
|
$ |
1,222,484 |
|
|
|
|
|
PROTARA
THERAPEUTICS, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(unaudited) |
|
|
|
|
|
For the Three Months Ended March 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
Operating
expense: |
|
|
|
Research & development |
$ |
3,064,793 |
|
|
$ |
1,077,846 |
|
General & administrative |
|
7,094,832 |
|
|
|
450,210 |
|
Total operating expenses |
|
10,159,625 |
|
|
|
1,528,056 |
|
|
|
|
|
Operating loss |
|
(10,159,625 |
) |
|
|
(1,528,056 |
) |
|
|
|
|
Other
(income) expense, net |
|
|
|
Interest (income) expense, net |
|
(99,368 |
) |
|
|
- |
|
Total other (income) expense, net |
|
(99,368 |
) |
|
|
- |
|
|
|
|
|
Net
Loss |
$ |
(10,060,257 |
) |
|
$ |
(1,528,056 |
) |
|
|
|
|
Weighted
Average Shares Outstanding, basic and diluted |
|
5,560,507 |
|
|
|
2,627,533 |
|
|
|
|
|
Net loss per
share, basic and diluted |
$ |
(1.81 |
) |
|
$ |
(0.58 |
) |
|
|
|
|
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