Odonate Therapeutics Announces Financial Results for the Three Months Ended March 31, 2021

Rhea-AI Summary

Odonate Therapeutics, Inc. (NASDAQ: ODT) reported financial results for Q1 2021, announcing a net loss of $33.8 million, compared to $30.2 million in Q1 2020. The company has discontinued the development of tesetaxel and is winding down related operations while facilitating patient transitions to alternative therapies. Cash reserves decreased to $133.2 million from $157.3 million as of December 31, 2020, attributed to $24.9 million used in operating activities.

Positive

• None.

Negative

• Discontinuation of tesetaxel development, impacting future revenue potential.
• Decrease in cash reserves by $24.1 million, indicating financial strain.
• Net loss increased compared to the previous year, raising concerns over profitability.

Odonate Therapeutics, Inc. (NASDAQ: ODT) today announced financial results for the three months ended March 31, 2021.

Odonate recently announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations. Odonate is working with clinical sites to transition patients in ongoing tesetaxel studies to appropriate alternative therapies or facilitate continuation of treatment with tesetaxel under compassionate use programs where appropriate.

As of March 31, 2021, Odonate had $133.2 million in cash compared to $157.3 million as of December 31, 2020. This decrease in cash resulted primarily from cash used in operating activities for the three months ended March 31, 2021 of $24.9 million. Odonate’s net loss for the three months ended March 31, 2021 and 2020 was $33.8 million and $30.2 million, or $0.90 and $0.99 per share, respectively.

About Odonate Therapeutics, Inc.

Odonate Therapeutics, Inc. is a pharmaceutical company formerly focused on the development of tesetaxel, an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer. Odonate recently announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations.

ODONATE THERAPEUTICS, INC. Condensed Balance Sheets (in thousands, except par value and share amounts)
		March 31,				December 31,
		2021				2020
		(Unaudited)
Assets
Current assets:
Cash		$	133,160			$	157,265
Prepaid expenses and other current assets			2,943				2,607
Total current assets			136,103				159,872
Property and equipment, net			2,132				2,286
Right-of-use lease assets			3,876				4,017
Restricted cash			714				714
Other			54				997
Total assets		$	142,879			$	167,886
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	15,252			$	14,168
Accrued expenses			17,128				12,247
Lease liabilities, current portion			715				658
Total current liabilities			33,095				27,073
Lease liabilities, less current portion			4,483				4,668
Total liabilities			37,578				31,741
Stockholders' equity:
Common stock, $0.01 par value—100,000,000 shares authorized; 38,507,109 and 38,562,281 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively			368				367
Additional paid-in capital			505,128				502,205
Accumulated deficit			(400,195	)			(366,427	)
Total stockholders' equity			105,301				136,145
Total liabilities and stockholders' equity		$	142,879			$	167,886

ODONATE THERAPEUTICS, INC. Condensed Statements of Operations (Unaudited) (in thousands, except share and per share amounts)
		Three Months Ended
		March 31,
		2021				2020
Operating expenses:
Research and development		$	30,928			$	27,947
General and administrative			2,890				2,874
Total operating expenses			33,818				30,821
Loss from operations			(33,818	)			(30,821	)
Other income, net			50				658
Net loss		$	(33,768	)		$	(30,163	)
Net loss per share:
Basic and diluted		$	(0.90	)		$	(0.99	)
Weighted-average shares outstanding:
Basic and diluted			37,400,369				30,610,696

ODONATE THERAPEUTICS, INC. Condensed Statements of Cash Flows (Unaudited) (in thousands)
		Three Months Ended
		March 31,
		2021				2020
Cash flows from operating activities:
Net loss		$	(33,768	)		$	(30,163	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity-based compensation expense			2,099				2,586
Depreciation and amortization			126				62
Non-cash lease expense			141				-
Loss on disposal of property and equipment			53				-
Changes in operating assets and liabilities:
Prepaid expenses and other assets			607				(624	)
Accounts payable			1,080				(696	)
Accrued expenses			4,881				990
Lease liabilities			(128	)			-
Net cash used in operating activities			(24,909	)			(27,845	)
Cash flows from investing activities:
Purchases of property and equipment			(21	)			(19	)
Net cash used in investing activities			(21	)			(19	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans			825				521
Net cash provided by financing activities			825				521
Net decrease in cash and restricted cash			(24,105	)			(27,343	)
Cash and restricted cash, beginning of period			157,979				181,174
Cash and restricted cash, end of period		$	133,874			$	153,831
Supplemental disclosure of cash flow information:
Property and equipment purchases included in accounts payable		$	4			$	7

 

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FAQ

What were Odonate Therapeutics' financial results for Q1 2021?

Odonate reported a net loss of $33.8 million for Q1 2021, compared to a loss of $30.2 million in Q1 2020.

What is the current cash position of Odonate Therapeutics?

As of March 31, 2021, Odonate had $133.2 million in cash, down from $157.3 million at the end of 2020.

What is the status of tesetaxel related operations at Odonate?

Odonate has discontinued tesetaxel development and is winding down related operations, transitioning patients to alternative therapies.

How much cash did Odonate use in operating activities in Q1 2021?

Odonate used $24.9 million in operating activities during the three months ended March 31, 2021.