ARCA biopharma Announces Third Quarter 2023 Financial Results

Rhea-AI Summary

ARCA biopharma reports Q3 2023 financial results and provides corporate update

Positive

• Cash and cash equivalents were $38.5 million as of September 30, 2023, compared to $42.4 million as of December 31, 2022.
• ARCA believes that its current cash and cash equivalents will be sufficient to fund its operations through the end of 2024.
• Research and development expenses for Q3 2023 decreased by $0.7 million compared to the same period in 2022.
• Total operating expenses for Q3 2023 were $2.0 million, a decrease from $2.6 million in Q3 2022.
• Net loss for Q3 2023 was $1.4 million, or $0.10 per share, compared to $2.3 million, or $0.16 per share, in Q3 2022.

Negative

• The Company does not have a defined timeline for the strategic review process and the review may not result in any specific action or transaction.
• Personnel reductions were implemented in July 2022, resulting in a strategic reduction of the workforce by approximately 67% or 12 employees.

• Company is currently engaged in a strategic review process, evaluating additional development of its assets, collaborations and other strategic options
  

WESTMINSTER, Colo., Oct. 18, 2023 (GLOBE NEWSWIRE) -- ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company applying a precision medicine approach to developing genetically targeted therapies for cardiovascular diseases, today reported third quarter 2023 financial results and provided a corporate update.

In April 2022, the Board of Directors established a Special Committee and, in May 2022, retained Ladenburg Thalmann & Co. Inc. (“Ladenburg”) to evaluate strategic options, including transactions involving a merger, sale of all or part of the Company’s assets, or other alternatives with the goal of maximizing stockholder value. The Company and Ladenburg have reviewed several potential strategic transactions and continue to evaluate further potential development of the Company’s existing assets, in order to maximize stockholder value. The Company does not have a defined timeline for the strategic review process and the review may not result in any specific action or transaction.

Third Quarter 2023 Summary Financial Results

Cash and cash equivalents were $38.5 million as of September 30, 2023, compared to $42.4 million as of December 31, 2022. ARCA believes that its current cash and cash equivalents, consisting primarily of money market funds, will be sufficient to fund its operations through the end of 2024.

General and administrative (G&A) expenses were $1.6 million for the quarter ended September 30, 2023, consistent with $1.5 million for the corresponding period in 2022. G&A expenses in 2023 are expected to be consistent with those in 2022 as the Company maintains administrative activities to support our ongoing operations.

Research and development (R&D) expenses were $0.3 million for the quarter ended September 30, 2023, compared to $1.0 million for the corresponding period in 2022, a $0.7 million decrease. R&D personnel costs decreased approximately $0.6 million for the quarter ended September 30, 2023, as compared to the corresponding period in 2022, due to decreased headcount. In July 2022, we implemented a strategic reduction of our workforce by approximately 67%, or 12 employees. Personnel reductions were primarily focused in research and development and general and administrative functions. The restructuring was a result of our decision to manage our operating costs and expenses. During the nine months ended September 30, 2022, we recorded total restructuring charges of approximately $790,000, of which $490,000 and $300,000 were recognized in research and development and general and administrative expenses, respectively, in connection with the restructuring, all in the form of one-time termination benefits. R&D expenses in 2023 are expected to be lower than 2022.

Total operating expenses for the quarter ended September 30, 2023 were $2.0 million compared to $2.6 million for the third quarter 2022.

Net loss for the quarter ended September 30, 2023 was $1.4 million, or $0.10 per basic and diluted share, compared to $2.3 million, or $0.16 per basic and diluted share in the third quarter of 2022.

About ARCA biopharma
ARCA biopharma is dedicated to developing genetically and other targeted therapies for cardiovascular diseases through a precision medicine approach to drug development. At present, ARCA is evaluating options for development of its assets, including partnering and other strategic options. For more information, please visit www.arcabio.com or follow the Company on LinkedIn.

Safe Harbor Statement
This press release contains "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding potential future development plans for Gencaro and rNAPc2, if any, and the Company’s review of strategic options. Such statements are based on management's current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, the risks and uncertainties associated with: ARCA’s financial resources and whether they will be sufficient to meet its business objectives and operational requirements; ARCA’s ability to raise sufficient capital on acceptable terms, or at all; the Company’s ability to continue development of Gencaro or rNAPc2 or to otherwise continue operations in the future; the Company’s ability to complete a strategic transaction; results of earlier clinical trials may not be confirmed in future clinical trials; the protection and market exclusivity provided by ARCA’s intellectual property; risks related to the drug discovery and the regulatory approval processes; and the impact of competitive products and technological changes. These and other factors are identified and described in more detail in ARCA’s filings with the Securities and Exchange Commission, including, without limitation, in ARCA’s Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent filings. ARCA disclaims any intent or obligation to update these forward-looking statements.

All forward-looking statements in this press release are current only as of the date hereof and, except as required by applicable law, ARCA undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified in their entirety by this cautionary statement.

Investor & Media Contact:
Jeff Dekker
720.940.2122
ir@arcabio.com

(Tables follow)

ARCA BIOPHARMA, INC.
BALANCE SHEET DATA (in thousands) (unaudited)
	September 30, 2023		December 31, 2022
Cash and cash equivalents	$38,487		$42,445
Working capital	$37,900		$41,567
Total assets	$39,184		$43,085
Total stockholders’ equity	$37,968		$41,673

ARCA BIOPHARMA, INC.
STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2023				2022				2023				2022
	(in thousands, except share and per share amounts)
Costs and expenses:
General and administrative	$	1,615			$	1,528			$	4,740			$	4,360
Research and development		322				1,024				966				4,688
Total costs and expenses		1,937				2,552				5,706				9,048
Loss from operations		(1,937	)			(2,552	)			(5,706	)			(9,048	)
Interest and other income		513				222				1,456				301
Other loss		—				(3	)			—				(5	)
Net loss	$	(1,424	)		$	(2,333	)		$	(4,250	)		$	(8,752	)
Net loss per share:
Basic and diluted	$	(0.10	)		$	(0.16	)		$	(0.29	)		$	(0.61	)
Weighted average shares outstanding:
Basic and diluted		14,410,143				14,410,143				14,410,143				14,410,143

FAQ

What were ARCA biopharma's cash and cash equivalents as of September 30, 2023?

ARCA biopharma had $38.5 million in cash and cash equivalents as of September 30, 2023.

What is ARCA biopharma's expectation for its current cash and cash equivalents?

ARCA believes that its current cash and cash equivalents will be sufficient to fund its operations through the end of 2024.

How did ARCA biopharma's research and development expenses change in Q3 2023 compared to Q3 2022?

Research and development expenses for Q3 2023 decreased by $0.7 million compared to the same period in 2022.

What were ARCA biopharma's total operating expenses in Q3 2023?

ARCA biopharma's total operating expenses for Q3 2023 were $2.0 million.

What was ARCA biopharma's net loss in Q3 2023?

ARCA biopharma's net loss for Q3 2023 was $1.4 million, or $0.10 per share.

What is the strategic review process of ARCA biopharma?

ARCA biopharma is currently engaged in a strategic review process to evaluate additional development of its assets, collaborations, and other strategic options.