Odonate Therapeutics Announces Financial Results for the Three and Nine Months Ended September 30, 2021

Rhea-AI Summary

Odonate Therapeutics reported financial results for the three and nine months ending September 30, 2021. The company holds $95.0 million in cash, down from $157.3 million at year-end 2020. Operating cash usage was $15.1 million for Q3 2021 and $63.0 million for the first nine months. The net loss narrowed to $14.0 million ($0.37 per share) for Q3 2021, compared to a loss of $30.5 million ($0.93 per share) in Q3 2020. For the nine months, the net loss was $69.8 million ($1.85 per share), down from $94.1 million ($3.00 per share) in the previous year.

Positive

• Narrowed net loss for Q3 2021 to $14.0 million from $30.5 million in Q3 2020.
• Reduced net loss for nine months to $69.8 million from $94.1 million in the previous year.

Negative

• Cash reserves decreased to $95.0 million from $157.3 million at the end of 2020.
• Operating cash usage increased to $63.0 million for the first nine months.

NEW YORK--(BUSINESS WIRE)-- Odonate Therapeutics, Inc. (NASDAQ: ODT) today announced financial results for the three and nine months ended September 30, 2021.

As of September 30, 2021, Odonate had $95.0 million in cash compared to $157.3 million as of December 31, 2020. Odonate’s cash used in operating activities for the three and nine months ended September 30, 2021 was $15.1 million and $63.0 million, respectively.

Odonate’s net loss for the three and nine months ended September 30, 2021 was $14.0 million and $69.8 million, or $0.37 and $1.85 per share, respectively, compared to $30.5 million and $94.1 million, or $0.93 and $3.00 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 has transitioned all patients in tesetaxel studies to appropriate alternative therapies or facilitated continuation of treatment with tesetaxel under compassionate use programs where appropriate.

ODONATE THERAPEUTICS, INC.
Condensed Balance Sheets
(in thousands, except par value and share amounts)
		September 30,				December 31,
		2021				2020
		(Unaudited)
Assets
Current assets:
Cash		$	95,028			$	157,265
Prepaid expenses and other current assets			4,554				2,607
Total current assets			99,582				159,872
Property and equipment, net			1,833				2,286
Right-of-use lease assets			3,590				4,017
Restricted cash			714				714
Other			54				997
Total assets		$	105,773			$	167,886
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	11,661			$	14,168
Accrued expenses			17,892				12,247
Lease liabilities, current portion			744				658
Total current liabilities			30,297				27,073
Lease liabilities, less current portion			4,105				4,668
Total liabilities			34,402				31,741
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value—100,000,000 shares authorized; 38,490,336 and 38,562,281 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively			368				367
Additional paid-in capital			507,210				502,205
Accumulated deficit			(436,207	)			(366,427	)
Total stockholders' equity			71,371				136,145
Total liabilities and stockholders' equity		$	105,773			$	167,886

ODONATE THERAPEUTICS, INC.
Condensed Statements of Operations
(Unaudited)
(in thousands, except share and per share amounts)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2021				2020				2021				2020
Operating expenses:
Research and development		$	2,869			$	28,242			$	52,422			$	86,966
General and administrative			11,148				2,408				17,467				8,033
Total operating expenses			14,017				30,650				69,889				94,999
Loss from operations			(14,017	)			(30,650	)			(69,889	)			(94,999	)
Other income, net			20				173				109				935
Net loss		$	(13,997	)		$	(30,477	)		$	(69,780	)		$	(94,064	)
Net loss per share:
Basic and diluted		$	(0.37	)		$	(0.93	)		$	(1.85	)		$	(3.00	)
Weighted-average shares outstanding:
Basic and diluted			37,922,594				32,821,835				37,750,432				31,376,672

ODONATE THERAPEUTICS, INC.
Condensed Statements of Cash Flows
(Unaudited)
(in thousands)
		Nine Months Ended
		September 30,
		2021				2020
Cash flows from operating activities:
Net loss		$	(69,780	)		$	(94,064	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity-based compensation expense			4,181				7,522
Depreciation and amortization			368				318
Non-cash lease expense			427				282
Loss on disposal of property and equipment			111				83
Changes in operating assets and liabilities:
Prepaid expenses and other assets			(1,004	)			904
Accounts payable			(2,507	)			(1,559	)
Accrued expenses			5,645				5,110
Lease liabilities			(477	)			(225	)
Net cash used in operating activities			(63,036	)			(81,629	)
Cash flows from investing activities:
Purchases of property and equipment			(26	)			(416	)
Net cash used in investing activities			(26	)			(416	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans			825				2,459
Proceeds from issuance of common stock, net of issuance costs			-				87,384
Net cash provided by financing activities			825				89,843
Net decrease in cash and restricted cash			(62,237	)			7,798
Cash and restricted cash, beginning of period			157,979				181,174
Cash and restricted cash, end of period		$	95,742			$	188,972
Supplemental disclosure of cash flow information:
Initial recognition of right-of-use lease assets		$	-			$	2,861
Tenant improvement allowance		$	-			$	719

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110005549/en/

Odonate Therapeutics, Inc.

Michael Hearne

Chief Financial Officer

(332) 208-7611

mhearne@odonate.com

Source: Odonate Therapeutics, Inc.

FAQ

What were Odonate Therapeutics' cash reserves as of September 30, 2021?

Odonate Therapeutics reported $95.0 million in cash as of September 30, 2021.

What was the net loss for Odonate Therapeutics in Q3 2021?

Odonate's net loss for Q3 2021 was $14.0 million, which translates to $0.37 per share.

How does the Q3 2021 net loss compare to Q3 2020 for Odonate Therapeutics?

The net loss decreased from $30.5 million ($0.93 per share) in Q3 2020 to $14.0 million in Q3 2021.

What was the operating cash usage for Odonate Therapeutics in the nine months ended September 30, 2021?

Odonate's operating cash usage for the nine months was $63.0 million.