Antibe Therapeutics Reports Q3 2021 Interim Financial and Operating Results

Rhea-AI Summary

Antibe Therapeutics Inc. (TSX: ATE, OTCQB: ATBPF) has reported its financial results for the quarter ending December 31, 2020. Notable achievements include preparations for Phase III trials of otenaproxesul, strategic licensing with Nuance Pharma for the Greater China region, and a rise in cash reserves to $15.4 million. Revenue increased to $2.8 million, up from $2.6 million, primarily due to Citagenix. However, the net loss widened to $6.5 million from $4.2 million, reflecting higher R&D expenses of $3.4 million. Overall, Antibe is focusing on expanding its pipeline and solidifying its market position.

Positive

• Completed exclusive licensing deal with Nuance Pharma worth US$100 million in milestone payments.
• Increased cash position to $15.4 million from $6.2 million.
• Revenue rose to $2.8 million, indicating growth in sales.

Negative

• Net loss increased to $6.5 million from $4.2 million.
• R&D expenses rose significantly to $3.4 million, impacting financial performance.

Antibe Therapeutics Inc. (TSX: ATE, OTCQB: ATBPF), a clinical stage company leveraging its unique hydrogen sulfide platform to develop safer medicines for pain and inflammation, today filed its financial and operating results for the fiscal quarter ended December 31, 2020.

“We had a busy quarter and made excellent progress on a number of fronts,” commented Dan Legault, Antibe’s CEO. “With our Phase III preparations on track, we intensified our focus on the strategic monetization of otenaproxesul, culminating in an exclusive license with Nuance Pharma in China earlier this week. We’ve also strengthened our capital markets positioning by graduating to the TSX, completing the consolidation of our shares, expanding our institutional outreach, and appointing two senior U.S. directors.”

Business Highlights

Otenaproxesul, lead product candidate entering Phase III trials for osteoarthritis pain

• Initiated six Phase III-enabling animal toxicology studies
• Commissioned and completed an in-depth partner targeting study by recently retained global life science transaction firm
• Completed a strategic licensing deal with Nuance Pharma for the commercialization of otenaproxesul in the Greater China region, with milestone payments totaling US$100 million and a double-digit royalty

Broader pipeline including ATB-352 for peri-operative pain and ATB-340, a GI-safe alternative to aspirin

• Completed third party market study of peri-operative pain drug opportunity, projecting a peak annual sales potential of US$800 million
• Identified the first candidate drug molecule (targeting inflammatory bowel disease) originating from the Company’s pipeline expansion initiatives

Corporate

• Appointed Robert Hoffman and Jennifer McNealey to the Company’s Board of Directors
• Recruited Dr. Don Haut to the Company’s Partnering Advisory Team
• Graduated to the Toronto Stock Exchange and completed a share consolidation
• Initiated efforts to unify the intellectual property ownership of the Company’s drugs and platform

Financial Results

Cash Position: As of December 31, 2020, the Company had an available cash balance totaling $15.4 million, compared to $6.2 million at March 31, 2020. Subsequent to the end of the quarter, Antibe announced a license for otenaproxesul to Nuance Pharma that provides for a US$20 million upfront payment.

Revenue: For the quarter ended December 31, 2020, revenue totaled $2.8 million, compared to $2.6 million for the same period in fiscal 2020. All revenue was due to the Company’s subsidiary, Citagenix and the increase was driven by higher sales in the United States.

Net Loss: For the quarter ended December 31, 2020, net loss amounted to $6.5 million ($0.17 per share), compared to $4.2 million ($0.15 per share) for the same period in fiscal 2020.

Research and Development Expenses: Research and development expenses, net of research tax credits, amounted to $3.4 million for the quarter ended December 31, 2020, compared to $1.6 million for the same period in fiscal 2020. The increase was primarily due to higher development costs and professional and consulting fees for non-clinical development studies for otenaproxesul.

General and Administrative Expenses: General and administrative expenses amounted to $2.0 million for the quarter ended December 31, 2020, compared to $1.5 million for the same period in fiscal 2020. The increase was primarily due to higher salaries, professional and consulting fees and office costs partly offset by lower other costs.

Sales and Marketing Expenses: Sales and marketing expenses amounted to $0.9 million for the quarter ended December 31, 2020, compared to $1.0 million for the same period in fiscal 2020. The decrease consisted of lower salaries and commissions, travel and entertainment costs and advertising and promotions costs.

With the divestiture of a Citagenix subsidiary (BMT Medizintechnik GmbH) during the quarter, the above-stated financial results reflect continuing operations. The Company's unaudited fiscal Q3 2021 condensed interim consolidated financial statements and MD&A will be available shortly on SEDAR.

About Antibe Therapeutics Inc.

Antibe is leveraging its proprietary hydrogen sulfide platform to develop next-generation safer therapies to address inflammation arising from a wide range of medical conditions. Antibe’s current pipeline includes three assets that seek to overcome the gastrointestinal (“GI”) ulcers and bleeding associated with nonsteroidal anti-inflammatory drugs (“NSAIDs”). Antibe’s lead drug, otenaproxesul (formerly ATB-346), is entering Phase III for osteoarthritis pain. Additional assets under development include a safer alternative to opioids for peri-operative pain, and a GI-safe alternative to low-dose aspirin. The Company’s next target is inflammatory bowel disease (“IBD”), a condition long in need of safer, more effective therapies. Learn more at antibethera.com.

Forward Looking Information

This news release includes certain forward-looking statements, which may include, but are not limited to, the proposed licensing and development of drugs and medical devices. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "will", "anticipate", "believe", "plan", "estimate", "expect", "intend", "propose" and similar wording. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, the Company’s inability to secure additional financing and licensing arrangements on reasonable terms, or at all, its inability to execute its business strategy and successfully compete in the market, and risks associated with drug and medical device development generally. Antibe Therapeutics assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210212005107/en/

FAQ

What were Antibe Therapeutics' financial results for Q3 2021?

Antibe reported a revenue of $2.8 million for Q3 2021, with a net loss of $6.5 million.

What is the significance of the licensing deal with Nuance Pharma?

The licensing deal provides Antibe with up to US$100 million in milestone payments, boosting its potential revenue.

What are the current developments for otenaproxesul?

Otenaproxesul is entering Phase III trials for osteoarthritis pain, with six Phase III-enabling animal studies initiated.

How much cash does Antibe Therapeutics have as of December 31, 2020?

As of December 31, 2020, Antibe had a cash balance of $15.4 million.

What are the main expenses for Antibe Therapeutics reported in Q3 2021?

Antibe reported R&D expenses of $3.4 million and general and administrative expenses of $2.0 million for Q3 2021.