Acasti Announces Year-End 2024 Financial Results, Provides Business Update
Acasti Pharma (NASDAQ: ACST) released its year-end 2024 financial results and provided a business update. The company highlighted the ongoing Phase 3 STRIVE-ON trial for GTX-104, a novel injectable nimodipine formulation targeting aneurysmal subarachnoid hemorrhage (aSAH). Patient enrollment is on track, with a potential NDA submission expected in H1 2025. A $7.5 million private placement in September 2023 has extended Acasti's cash runway into Q2 2026. For fiscal year 2024, Acasti reported a net loss of $12.9 million, a significant improvement from the $42.4 million loss in 2023, mainly due to non-recurring asset impairments. R&D expenses dropped to $4.7 million from $10.0 million year-over-year, while G&A expenses decreased to $6.4 million from $7.6 million. As of March 31, 2024, Acasti held $23 million in cash and cash equivalents.
- Phase 3 STRIVE-ON trial for GTX-104 is on track for potential NDA submission in H1 2025.
- Cash runway extended into Q2 2026 due to a $7.5 million private placement.
- Net loss for FY 2024 decreased to $12.9 million from $42.4 million in FY 2023.
- R&D expenses reduced to $4.7 million from $10.0 million year-over-year.
- G&A expenses decreased to $6.4 million from $7.6 million year-over-year.
- Net loss reported at $12.9 million for FY 2024.
- Cash and cash equivalents decreased to $23 million as of March 31, 2024, down from $27.9 million the previous year.
- Decrease in G&A expenses partially offset by increased legal, tax, accounting, and other professional fees related to restructuring and private placement.
Insights
Acasti Pharma's year-end 2024 financial results show a significant reduction in net loss, from
On the flipside, the reliance on a single product, GTX-104, for driving future growth puts pressure on the successful completion and approval of the Phase 3 trial. Additionally, the company's reduced operational expenditure might concern those who associate higher spending with aggressive growth tactics.
Overall, the financial stability gained through strategic measures is promising, yet the company's future hinges critically on the success of GTX-104.
The ongoing STRIVE-ON Phase 3 trial for GTX-104 is a pivotal effort for Acasti Pharma. GTX-104, in development for treating aneurysmal subarachnoid hemorrhage (aSAH), addresses a critical need—offering a potentially more efficacious and safer injectable alternative to oral nimodipine. Patient enrollment is on track and the trial’s design, comparing GTX-104 with oral nimodipine in a prospective, open-label, randomized format, provides a robust framework for evaluating efficacy and safety. The potential NDA submission in the first half of 2025, if successful, could position GTX-104 as a new standard of care for aSAH, significantly impacting both patients' outcomes and Acasti's market position.
From an investor’s perspective, it’s essential to understand the high stakes and inherent risks of clinical trials. Delays or negative trial outcomes can considerably impact stock value. However, the drug’s promising pharmacokinetic profile presented at recent conferences boosts confidence in its potential FDA approval.
Acasti Pharma's strategic maneuvers and the ongoing Phase 3 STRIVE-ON trial for GTX-104 are important for its market outlook. The company's $7.5 million private placement secured in September 2023 indicates strong investor confidence and provides necessary capital to advance GTX-104. The projected cash runway until Q2 2026 offers a significant cushion, supporting operations well into post-NDA submission periods. This financial buffer is important for mitigating risks associated with potential regulatory delays or additional trial phases.
Additionally, Acasti's focus on a high unmet medical need for a rare condition like aSAH positions it uniquely within the biopharma landscape. While the niche market could limit immediate widespread adoption, the high-value nature of rare disease treatments and potentially favorable reimbursement scenarios in such cases offer considerable long-term revenue prospects.
Investors should be aware that while the focused strategy on GTX-104 is prudent given the company’s resource constraints, it also narrows the pipeline, increasing dependency on single-trial success.
- Patient Enrollment in Pivotal STRIVE-ON Phase 3 Safety Trial for GTX-104 On-Track for Potential NDA Submission in 1H Calendar 2025
- Projected Cash Runway into Second Calendar Quarter 2026
PRINCETON, N.J., June 21, 2024 (GLOBE NEWSWIRE) -- Acasti Pharma Inc. (Nasdaq: ACST) (Acasti or the Company), a late-stage, biopharma company advancing GTX-104, its novel injectable formulation of nimodipine that addresses high unmet medical needs for a rare disease, aneurysmal subarachnoid hemorrhage (aSAH), today announced financial results and business highlights for the year ended March 31, 2024.
"During the past year we continued to execute our focused strategy around our biggest value driver program GTX-104 and its pivotal Phase 3 STRIVE-ON safety trial (the STRIVE-ON trial–NCT05995405),” said Prashant Kohli, CEO of Acasti. “Since initiating STRIVE-ON and dosing the first patient last October, enrollment has proceeded steadily, and we believe the trial is on track for a potential NDA submission to the FDA in the first half of calendar 2025. With our balance sheet enhanced by the
2024 Corporate Highlights
- Overview of STRIVE-ON trial, a prospective, open-label, randomized (1:1 ratio), parallel group trial of GTX-104 compared with oral nimodipine, in patients hospitalized for aSAH, presented as a poster at the 2024 International Stroke Conference
- Enrollment of STRIVE-ON trial on track for potential NDA submission to FDA anticipated in the first half of calendar 2025
- Conducted a meeting of STRIVE-ON trial investigators in April 2024; the in-person/virtual meeting provided an excellent opportunity to energize the principal investigators from all sites, engage in an interactive discussion about the trial inclusion/exclusion criteria, and to review key procedures to ensure quality data collection
- In October 2023 hosted a Key Opinion Leader Event GTX-104: A Potential New Treatment Standard for Rare and Life-Threatening aneurysmal Subarachnoid Hemorrhage (aSAH)
- Completed
$7.5 million private placement equity financing led by ADAR1 Partners, LP in September 2023 - Presented a pharmacokinetic comparison of GTX-104 with oral nimodipine at the 2023 Neurocritical Care Society annual meeting in August 2023.
Fiscal Year 2024 Financial Results
The Company reported a net loss of
Research and development expenses for the year ended March 31, 2024 were
General and administrative expenses were
At March 31, 2024 the Company had cash and cash equivalents of
About aneurysmal Subarachnoid Hemorrhage (aSAH)
aSAH is bleeding over the surface of the brain in the subarachnoid space between the brain and the skull, which contains blood vessels that supply the brain. A primary cause of such bleeding is the rupture of an aneurysm. Approximately
About the Acasti Asset Portfolio
GTX-104 is a clinical stage, novel, injectable formulation of nimodipine being developed for intravenous (IV) infusion in aSAH patients to address significant unmet medical needs. The unique nanoparticle technology of GTX-104 facilitates aqueous formulation of insoluble nimodipine for a standard peripheral IV infusion.
GTX-104 provides a convenient IV delivery of nimodipine in the Intensive Care Unit potentially eliminating the need for nasogastric tube administration in unconscious or dysphagic patients. Intravenous delivery of GTX-104 also has the potential to lower food effects, drug-to-drug interactions, and eliminate potential dosing errors. Further, GTX-104 has the potential to better manage hypotension in aSAH patients. GTX-104 has been administered in over 150 healthy volunteers and was well tolerated with significantly lower inter- and intra-subject pharmacokinetic variability compared to oral nimodipine. The addressable market in the United States for GTX-104 is estimated to be about
GTX-102 is a novel, concentrated oral-mucosal spray of betamethasone intended to improve neurological symptoms of Ataxia-Telangiectasia (A-T), for which there are currently no FDA-approved therapies. GTX-102 is a stable, concentrated oral spray formulation comprised of the gluco-corticosteroid betamethasone that, together with other excipients can be sprayed conveniently over the tongue of the A-T patient and is rapidly absorbed. The further development of GTX-102 has been deprioritized in favor of our focus on development of GTX-104. It is also possible that we may out-license or sell our GTX-102 drug candidate.
GTX-101 is a non-narcotic, topical bio-adhesive film-forming bupivacaine spray designed to ease the symptoms of patients suffering with postherpetic neuralgia (“PHN”). GTX-101 is administered via a metered-dose of bupivacaine spray and forms a thin bio-adhesive topical film on the surface of the patient’s skin, which enables a touch-free, non-greasy application. It also comes in convenient, portable 30 ml plastic bottles. Unlike oral gabapentin and lidocaine patches, we believe that the biphasic delivery mechanism of GTX-101 has the potential for rapid onset of action and continuous pain relief for up to eight hours. No skin sensitivity was reported in a Phase 1 trial. The further development of GTX-101 has been deprioritized in favor of our focus on development of GTX-104. It is also possible that we may out-license or sell our GTX-101 drug candidate.
About Acasti
Acasti is a late-stage biopharma company with drug candidates addressing rare and orphan diseases. Acasti's novel drug delivery technologies have the potential to improve the performance of currently marketed drugs by achieving faster onset of action, enhanced efficacy, reduced side effects, and more convenient drug delivery. Acasti's lead clinical assets have each been granted Orphan Drug Designation by the FDA, which provides seven years of marketing exclusivity post-launch in the United States, and additional intellectual property protection with over 40 granted and pending patents. Acasti's lead clinical asset, GTX-104, is an intravenous infusion targeting aneurysmal Subarachnoid Hemorrhage (aSAH), a rare and life-threatening medical emergency in which bleeding occurs over the surface of the brain in the subarachnoid space between the brain and skull.
For more information, please visit: www.acasti.com.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and "forward-looking information" within the meaning of Canadian securities laws (collectively, "forward-looking statements"). Such forward looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of Acasti to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements containing the terms "believes," "belief," "expects," "intends," "anticipates," "estimates", "potential," "should," "may," "will," "plans," "continue", "targeted" or other similar expressions to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The forward-looking statements in this press release, including statements regarding the Company's anticipated cash runway, the timing of the planned NDA submission with the FDA in connection with the Company's STRIVE-ON trial, GTX-104’s commercial prospects, GTX-104's potential to bring enhanced treatment options to patients suffering from aSAH, and the anticipated benefits and future development, license or sale of the Company's other drug candidates are based upon Acasti's current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation: (i) the success and timing of regulatory submissions of the Phase 3 safety trial for GTX-104; (ii) regulatory requirements or developments and the outcome and timing of the proposed NDA application for GTX-104; (iii) changes to clinical trial designs and regulatory pathways; (iv) legislative, regulatory, political and economic developments; and (v) actual costs associated with Acasti's clinical trials as compared to management's current expectations. The foregoing list of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors detailed in documents that have been and are filed by Acasti from time to time with the Securities and Exchange Commission and Canadian securities regulators. All forward-looking statements contained in this press release speak only as of the date on which they were made. Acasti undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable securities laws.
For more information, please contact:
Acasti Contact:
Prashant Kohli
Chief Executive Officer
Tel: 450-686-4555
Email:info@acastipharma.com
www.acasti.com
Investor Relations:
LifeSci Advisors
Mike Moyer
Managing Director
Phone: 617-308-4306
Email: mmoyer@lifesciadvisors.com
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| ACASTI PHARMA INC. Consolidated Balance Sheets | ||||||||
| March 31, 2024 | March 31, 2023 | |||||||
| (Expressed in thousands except share data) | $ | $ | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 23,005 | 27,875 | ||||||
| Short-term investments | — | 15 | ||||||
| Receivables | 722 | 802 | ||||||
| Prepaid expenses | 283 | 598 | ||||||
| Total current assets | 24,010 | 29,290 | ||||||
| Operating lease right of use asset | — | 463 | ||||||
| Equipment, net | 24 | 104 | ||||||
| Intangible assets | 41,128 | 41,128 | ||||||
| Goodwill | 8,138 | 8,138 | ||||||
| Total assets | 73,300 | 79,123 | ||||||
| Liabilities and Shareholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade and other payables | 1,684 | 3,336 | ||||||
| Operating lease liability | — | 75 | ||||||
| Total current liabilities | 1,684 | 3,411 | ||||||
| Derivative warrant liabilities | 4,359 | — | ||||||
| Operating lease liability | — | 410 | ||||||
| Deferred tax liability | 5,514 | 7,347 | ||||||
| Total liabilities | 11,557 | 11,168 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity: | ||||||||
| Class A common shares, no par value per share; unlimited shares authorized; 9,399,404 and 7,435,533 shares issued and outstanding as of March 31, 2024 and 2023, respectively | 261,038 | 258,294 | ||||||
| Class B, C, D and E common shares, no par value per share; unlimited shares authorized; none issued and outstanding | — | — | ||||||
| Additional paid-in capital | 17,862 | 13,965 | ||||||
| Accumulated other comprehensive loss | (6,038 | ) | (6,038 | ) | ||||
| Accumulated deficit | (211,119 | ) | (198,266 | ) | ||||
| Total shareholders' equity | 61,743 | 67,955 | ||||||
| Total liabilities and shareholders’ equity | 73,300 | 79,123 | ||||||
| ACASTI PHARMA INC. Consolidated Statements of Operations and Comprehensive Loss | ||||||||
| Year ended March 31, 2024 | Year ended March 31, 2023 | |||||||
| (Expressed in thousands, except share and per data) | $ | $ | ||||||
| Operating expenses | ||||||||
| Research and development expenses, net of government assistance | (4,683 | ) | (9,972 | ) | ||||
| General and administrative expenses | (6,432 | ) | (7,614 | ) | ||||
| Sales and marketing | (252 | ) | (661 | ) | ||||
| Restructuring cost | (1,485 | ) | — | |||||
| Impairment of intangible assets | — | (28,682 | ) | |||||
| Impairment of goodwill | — | (4,826 | ) | |||||
| Impairment of assets held for sale | — | (400 | ) | |||||
| Loss from operating activities | (12,852 | ) | (52,155 | ) | ||||
| Foreign exchange loss | (16 | ) | (72 | ) | ||||
| Change in fair value of derivative warrant liabilities | (2,728 | ) | 10 | |||||
| Interest income and other expense, net | 911 | 246 | ||||||
| Total other income (expense), net | (1,833 | ) | 184 | |||||
| Loss before income tax benefit | (14,685 | ) | (51,971 | ) | ||||
| Income tax benefit | 1,832 | 9,542 | ||||||
| Net loss and total comprehensive loss | (12,853 | ) | (42,429 | ) | ||||
| Basic and diluted loss per share | (1.35 | ) | (5.71 | ) | ||||
| Weighted average number of shares outstanding | 9,529,123 | 7,435,472 | ||||||
FAQ
What is the significance of Acasti Pharma's Phase 3 STRIVE-ON trial?
When is Acasti Pharma planning to submit the NDA for GTX-104?
How has Acasti Pharma extended its cash runway?
What were Acasti Pharma's financial results for fiscal year 2024?
What is Acasti Pharma's current cash position?
What were the major changes in Acasti Pharma's R&D and G&A expenses?
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What business updates did Acasti Pharma provide in its latest release?
