Anchiano Therapeutics Reports First Quarter 2020 Financial Results

Rhea-AI Summary

Anchiano Therapeutics Ltd. (Nasdaq: ANCN) reported its Q1 2020 financial results, revealing a net loss of approximately $3.5 million, down from $9.9 million in Q1 2019. Cash and cash equivalents declined to $14.0 million from $17.6 million, with a cash runway extended to Q1 2021. R&D expenses significantly dropped to $1.1 million due to the discontinuation of its Phase 2 Codex study. General and administrative expenses rose to $1.8 million, reflecting higher professional fees. The company remains focused on developing targeted cancer therapies.

Positive

• Net loss decreased significantly from $9.9 million in Q1 2019 to $3.5 million in Q1 2020.
• Cash runway extended to the first quarter of 2021.
• Research and development expenses reduced to $1.1 million from $4.1 million year-over-year.

Negative

• Cash and cash equivalents decreased from $17.6 million to $14.0 million.
• General and administrative expenses increased to $1.8 million from $1.3 million year-over-year.
• Restructuring expenses of approximately $0.7 million incurred from discontinuation of the Codex trial.

CAMBRIDGE, Mass., May 11, 2020 (GLOBE NEWSWIRE) -- Anchiano Therapeutics Ltd. (Nasdaq: ANCN) (“Anchiano”), a preclinical biopharmaceutical company dedicated to the discovery and development of new cancer therapies designed to target the products of mutated genes that are drivers of human malignancies, today reported financial results for its first quarter ended March 31, 2020.

“We have been very active this quarter and are continuing to transform as a company. We continue to focus on developing our targeted pan-mutant RAS and PDE10/b-catenin preclinical programs addressing the genetic basis of cancer, and believe they have tremendous potential in becoming meaningful therapeutics,” said Frank Haluska, M.D., Ph.D., President and Chief Executive Officer. “We have remained nimble as a company and have been able to extend our cash runway, which we believe now extends until the first quarter next year. Our goal is to developing a potent orally bioavailable molecule to move into clinical programs.”

First Quarter 2020 Financial Results: 
Cash and cash equivalents as of March 31, 2020 were approximately $14.0 million, compared to $17.6 million as of December 31, 2019. Financial resources are expected to suffice until the first quarter of 2021.

Research and development expenses for the quarter ended March 31, 2020 were approximately $1.1 million, compared to approximately $4.1 million for the same period in 2019. This decrease reflects clinical trial and drug supply manufacturing costs incurred in the first quarter of 2019 in connection with the clinical development of inodiftagene with no comparable costs in the 2020 period due to the Company’s discontinuation of its Phase 2 Codex study.

General and administrative expenses for the quarter ended March 31, 2020 were approximately $1.8 million, compared to expenses of approximately $1.3 million for the same period in 2019. The increase was primarily due to increases in professional fees, insurance and other expenses.

Financing income, net for the quarter ended March 31, 2020 was $10,000.  Finance expense, net in the quarter ended March 31, 2019 was $4.5 million, mainly due to revaluation of investor warrants at fair value during a period where these could not be classified within shareholders’ equity.

Restructuring expenses in the quarter ended March 31, 2020 were approximately $0.7 million, and were comprised principally of contract termination costs associated with the discontinuance of the Codex trial and facility-related costs associated with the Company’s decision to close its offices and facilities in Israel.

Net loss for the quarter ended March 31, 2020 was approximately $3.5 million compared to approximately $9.9 million for the same period in 2019.

About Anchiano 
Anchiano is a preclinical biopharmaceutical company dedicated to the discovery and development of new cancer therapies designed to target the products of mutated genes that are drivers of human malignancies.  Anchiano is developing small-molecule pan-mutant RAS inhibitors and inhibitors of PDE10 and the b-catenin pathway.  For more information on Anchiano, please visit its website at www.anchiano.com.

Forward-Looking Statements 
This press release contains “forward-looking statements” that are subject to risks and uncertainties. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond the control of Anchiano, including, without limitation, the risk factors and other matters set forth in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Anchiano undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Company Contact:
Frank Haluska, M.D., Ph.D.
President and Chief Executive Officer
info@anchiano.com

Investor Contact:
Ashley R. Robinson
Managing Director
LifeSci Advisors, LLC
617-430-7577
arr@lifesciadvisors.com

RESULTS OF OPERATIONS (unaudited) 
in thousands, except per share amounts

100%; border-collapse:collapse !important;">

		Three months ended March 31,
76%; width:76%; min-width:76%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">2020	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">2019
Operating expenses
Research and development expenses		$	1,050		$	4,135
General and administrative expenses			1,825			1,291
Restructuring expenses			670			-
Total operating expenses			3,545			5,426
Financing (income) expenses, net			(10)			4,487
Net loss for the period		$	(3,535)		$	(9,913)
Basic and diluted net loss per share		$	(0.10)		$	(0.38)

STATEMENTS OF FINANCIAL POSITION (unaudited) 
in thousands

100%; border-collapse:collapse !important;">

77%; width:77%; min-width:77%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">March 31, 2020	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">December 31, 2019
Assets
Current Assets	$	14,677		$	18,211
Non-Current Assets		506			1,544
Total Assets	$	15,183		$	19,755
Liabilities
Current Liabilities	$	3,471		$	4,121
Non-Current Liabilities		152			725
Total Liabilities		3,623			4,846
Equity
Total Equity		11,560			14,909
Total Liabilities and Equity	$	15,183		$	19,755

CASH FLOWS (unaudited) 
in thousands

100%; border-collapse:collapse !important;">

53%; min-width:53%;">	4%; min-width:4%;">Three months ended March 31,
77%; width:77%; min-width:77%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">2020	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">2019
Net cash used in operating activities	$	(3,536)		$	(3,122)
Net cash used in investing activities		(34)			(75)
Net cash provided by financing activities		-			27,819
Net increase (decrease) in cash and cash equivalents	$	(3,570)		$	24,622

FAQ

What are Anchiano Therapeutics' Q1 2020 financial results?

Anchiano reported a net loss of approximately $3.5 million, cash and cash equivalents of $14.0 million, and reduced R&D expenses to $1.1 million.

What is the cash runway for Anchiano Therapeutics?

The cash runway has been extended to the first quarter of 2021.

How did Anchiano's net loss change from Q1 2019 to Q1 2020?

The net loss decreased significantly from $9.9 million in Q1 2019 to $3.5 million in Q1 2020.