Odonate Therapeutics Announces Financial Results for the Three and Six Months Ended June 30, 2021

Rhea-AI Summary

Odonate Therapeutics, Inc. (NASDAQ: ODT) reported financial results for the six months ending June 30, 2021. The company announced the discontinuation of tesetaxel development and has transitioned patients to alternative therapies. As of June 30, 2021, Odonate held $110.1 million in cash, down from $157.3 million at the end of 2020, primarily due to $47.9 million in operating cash expenditures. The net loss for Q2 2021 was $22.0 million ($0.58 per share), and for the first half, it was $55.8 million ($1.48 per share), a decrease in losses from $33.4 million and $63.6 million in 2020.

Positive

• None.

Negative

• Discontinued development of tesetaxel, impacting future revenue potential.
• Cash decreased by $47.2 million in the first half of 2021 compared to 2020.
• Net loss for Q2 2021 was $22 million, indicating ongoing financial struggles.
• Total losses increased to $55.8 million for the first half of 2021.

Odonate Therapeutics, Inc. (NASDAQ: ODT) today announced financial results for the three and six months ended June 30, 2021.

In March 2021, Odonate announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations. As of June 30, 2021, Odonate has transitioned all patients in tesetaxel studies to appropriate alternative therapies or facilitated continuation of treatment with tesetaxel under compassionate use programs where appropriate.

As of June 30, 2021, Odonate had $110.1 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 six months ended June 30, 2021 of $47.9 million. Odonate’s net loss for the three and six months ended June 30, 2021 was $22.0 million and $55.8 million, or $0.58 and $1.48 per share, respectively, compared to $33.4 million and $63.6 million, or $1.09 and $2.07 per share, respectively, for the same periods in 2020.

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. In March 2021, Odonate 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)
		June 30,				December 31,
		2021				2020
		(Unaudited)
Assets
Current assets:
Cash		$	110,127			$	157,265
Prepaid expenses and other current assets			1,943				2,607
Total current assets			112,070				159,872
Property and equipment, net			2,001				2,286
Right-of-use lease assets			3,734				4,017
Restricted cash			714				714
Other			54				997
Total assets		$	118,573			$	167,886
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	13,121			$	14,168
Accrued expenses			15,800				12,247
Lease liabilities, current portion			729				658
Total current liabilities			29,650				27,073
Lease liabilities, less current portion			4,298				4,668
Total liabilities			33,948				31,741
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value—100,000,000 shares authorized; 38,499,534 and 38,562,281 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively			368				367
Additional paid-in capital			506,467				502,205
Accumulated deficit			(422,210	)			(366,427	)
Total stockholders' equity			84,625				136,145
Total liabilities and stockholders' equity		$	118,573			$	167,886

ODONATE THERAPEUTICS, INC. Condensed Statements of Operations (Unaudited) (in thousands, except share and per share amounts)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
Operating expenses:
Research and development		$	18,625			$	30,777			$	49,553			$	58,724
General and administrative			3,429				2,751				6,319				5,625
Total operating expenses			22,054				33,528				55,872				64,349
Loss from operations			(22,054	)			(33,528	)			(55,872	)			(64,349	)
Other income, net			39				104				89				762
Net loss		$	(22,015	)		$	(33,424	)		$	(55,783	)		$	(63,587	)
Net loss per share:
Basic and diluted		$	(0.58	)		$	(1.09	)		$	(1.48	)		$	(2.07	)
Weighted-average shares outstanding:
Basic and diluted			37,922,594				30,681,604				37,662,924				30,646,150

ODONATE THERAPEUTICS, INC. Condensed Statements of Cash Flows (Unaudited) (in thousands)
		Six Months Ended
		June 30,
		2021				2020
Cash flows from operating activities:
Net loss		$	(55,783	)		$	(63,587	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity-based compensation expense			3,438				5,181
Depreciation and amortization			248				147
Non-cash lease expense			283				-
Loss on disposal of property and equipment			63				83
Changes in operating assets and liabilities:
Prepaid expenses and other assets			1,607				1,024
Accounts payable			(1,047	)			(606	)
Accrued expenses			3,553				1,280
Lease liabilities			(299	)			-
Net cash used in operating activities			(47,937	)			(56,478	)
Cash flows from investing activities:
Purchases of property and equipment			(26	)			(219	)
Net cash used in investing activities			(26	)			(219	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans			825				1,654
Net cash provided by financing activities			825				1,654
Net decrease in cash and restricted cash			(47,138	)			(55,043	)
Cash and restricted cash, beginning of period			157,979				181,174
Cash and restricted cash, end of period		$	110,841			$	126,131
Supplemental disclosure of cash flow information:
Property and equipment purchases included in accounts payable		$	-			$	133

 

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FAQ

What were Odonate Therapeutics' financial results for Q2 2021?

Odonate reported a net loss of $22.0 million for Q2 2021, or $0.58 per share.

How much cash did Odonate have as of June 30, 2021?

Odonate had $110.1 million in cash as of June 30, 2021, down from $157.3 million at the end of 2020.

What was the reason for the cash decrease at Odonate?

The decrease in cash was primarily due to $47.9 million used in operating activities during the first half of 2021.

What is the future outlook for Odonate following the discontinuation of tesetaxel?

The discontinuation of tesetaxel raises concerns about Odonate's future revenue and product pipeline.