Galmed Pharmaceuticals Provides Business Update and Reports Second Quarter 2018 Financial Results
- Conference Call and Webcast Today at 8:30 a.m. EST / 5:30 a.m. PST -
TEL AVIV, Israel, Aug. 2, 2018 /PRNewswire/ -- Galmed Pharmaceuticals Ltd. (Nasdaq: GLMD) ("Galmed" or the "Company"), a clinical-stage biopharmaceutical company focused on the development of the liver targeted SCD1 modulator Aramchol, a once-daily, oral therapy for the treatment of nonalcoholic steatohepatitis, or NASH, today provides business update and reports financial results for the three and six months ended June 30, 2018. The Company will host a conference call and webcast at 08:30 ET today.
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Business Update
- In June 2018, the Company reported top line results in its global, 52 week, Phase IIb ARREST study on 247 NASH patients demonstrating that Aramchol™ 600 mg achieved a regulatory approvable endpoint showing NASH resolution without worsening of fibrosis. Full top line results can be viewed in the Company's press release dated June 12, 2018 and in a corporate presentation dated June 2018, both of which are available on the Company's website and in the Company's filings with the SEC. The Company is preparing for an end of Phase IIb meeting with the FDA to discuss the results of the ARREST study and the design of a pivotal study.
- In June 2018, the Company completed an underwritten public offering of 5,000,000 ordinary shares, at a price of $15.00 per share. Net proceeds, after deducting underwriting discounts and commissions and offering expenses, were $70.3 million.
- In April 2018, the Company sold to Biotechnology Value Fund, L.P. and certain of its affiliates 1,000,000 ordinary shares for a purchase price of $6.00 per share, and one-year warrants to purchase an additional 1,000,000 ordinary shares, with an exercise price of $15.00 per share. Net proceeds to the Company were $5.9 million.
Financial Summary - First Quarter 2018 vs. First Quarter 2017:
- Cash and cash equivalents and marketable securities totaled $94.1 million as of June 30, 2018, compared to $19.0 million at December 31, 2017. The increase is mainly attributable to the approximately $70.3 million in net proceeds raised in an underwritten public offering that was completed in June 2018, together with $5.9 million in net proceeds raised in a registered direct offering during April 2018.
- Net loss of $2.7 million, or ($0.17) per share, for the three months ended June 30, 2018, compared to a net loss of $2.7 million, or ($0.22) per share, for the three months ended June 30, 2018.
- The Company recognized $0.3 million of revenue for the three months ended June 30, 2018, the same amount as in the corresponding quarter in 2017. The revenue relates to the amortization of the up-front payments under the license agreement with Samil Pharma.
- Research and development expenses amounted to approximately $1.9 million for the three months ended June 30, 2018, compared to approximately $2.3 million for the three months ended June 30, 2017. The decrease resulted primarily from a decrease in expenses in connection with clinical studies.
- General and administrative expenses amounted to approximately $1.1 million for the three months ended June 30, 2018, compared to approximately $0.6 million for the three months ended June 30, 2017. The increase in general and administrative expenses for the three months ended June 30, 2018 resulted primarily from a provision for employees' year-end compensation, as well as an increase in professional services.
- Financial expenses amounted to $0.1 million for the three months ended June 30, 2018, compared to financial income of $0.01 million for the three months ended June 30, 2017.
Conference Call & Webcast:
Thursday, August 2 @ 8:30am Eastern Time
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Within the US: 888-394-8218
Outside the US: 323-701-0225
From Israel: 1809 212 883
Conference ID: 5856233
Webcast: http://public.viavid.com/index.php?id=130659
Replays, Available through August 16:
Domestic: 844-512-2921
International: 412-317-6671
Replay PIN: 5856233
About Aramchol and Non-alcoholic Steatohepatitis (NASH)
Aramchol (arachidyl amido cholanoic acid) is a novel fatty acid bile acid conjugate, inducing beneficial modulation of intra-hepatic lipid metabolism. Aramchol's ability to modulate hepatic lipid metabolism was discovered and validated in animal models, demonstrating downregulation of the three key pathologies of NASH: steatosis, inflammation and fibrosis. The effect of Aramchol on fibrosis is mediated by downregulation of steatosis and directly on human collagen producing cells. Aramchol has been granted Fast Track designation status by the FDA for the treatment of NASH.
NASH is an emerging world crisis impacting an estimated 3% to 5% of the U.S. population and an estimated 2% to 4% globally. It is the fastest growing cause of liver cancer and liver transplant in the U.S. due to the rise in obesity. NASH is the progressive form of non-alcoholic fatty liver disease that can lead to cardiovascular disease, cirrhosis and liver-related mortality.
About Galmed Pharmaceuticals Ltd.
Galmed is a clinical-stage biopharmaceutical company focused on the development of Aramchol, a first in class, novel, once-daily, oral therapy for the treatment of NASH for variable populations. Galmed recently announced top-line results of the ARREST Study, a multicenter, randomized, double blind, placebo-controlled Phase IIb clinical study designed to evaluate the efficacy and safety of Aramchol in subjects with NASH, who are overweight or obese, and who are pre-diabetic or type-II-diabetic. Galmed is currently preparing for an end of Phase IIb meeting with the FDA to discuss the results of the ARREST Study and a Phase III study protocol, with a view to initiating a Phase III clinical study of Aramchol in 2019.
Forward-Looking Statements:
This press release may include forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to Galmed's objectives, plans and strategies, as well as statements, other than historical facts, that address activities, events or developments that Galmed intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as "believes," "hopes," "may," "anticipates," "should," "intends," "plans," "will," "expects," "estimates," "projects," "positioned," "strategy" and similar expressions and are based on assumptions and assessments made in light of management's experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many factors could cause Galmed's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the timing and cost of Galmed's planned Phase III trial for Aramchol, or whether a Phase III trial will be conducted at all; completion and receiving favorable results of a Phase III trial for Aramchol or any other pre-clinical or clinical trial; regulatory action with respect to Aramchol by the FDA or the EMA; the commercial launch and future sales of Aramchol or any other future products or product candidates; Galmed's ability to comply with all applicable post-market regulatory requirements for Aramchol in the countries in which it seeks to market the product; Galmed's ability to achieve favorable pricing for Aramchol; Galmed's expectations regarding the commercial market for NASH; third-party payor reimbursement for Aramchol; Galmed's estimates regarding anticipated capital requirements and Galmed's needs for additional financing; market adoption of Aramchol by physicians and patients; the timing, cost or other aspects of the commercial launch of Aramchol; the development and approval of the use of Aramchol for additional indications or in combination therapy; and Galmed's expectations regarding licensing, acquisitions and strategic operations. More detailed information about the risks and uncertainties affecting Galmed is contained under the heading "Risk Factors" included in Galmed's most recent Annual Report on Form 20-F filed with the SEC on March 13, 2018, and in other filings that Galmed has made and may make with the SEC in the future. The forward-looking statements contained in this press release are made as of the date of this press release and reflect Galmed's current views with respect to future events, and Galmed does not undertake and specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
GALMED PHARMACEUTICALS LTD.
Consolidated Balance Sheets
---------------------------
U.S. Dollars in thousands, except share data and per share data
As of As of
June 30, December 31,
2018 2017
---- ----
Unaudited Audited
--------- -------
Assets
Current assets
Cash and cash
equivalents $6,151 $13,021
Marketable securities 87,954 5,976
Other accounts
receivable 368 155
--- ---
Total current assets 94,473 19,152
------ ------
Property and
equipment, net 374 491
--- ---
Total assets $94,847 $19,643
======= =======
Liabilities and
stockholders' equity
Current liabilities
Trade payables $2,346 $2,276
Other accounts payable 1,458 1,034
Short-term portion of
deferred revenue - 538
--- ---
Total current
liabilities 3,804 3,848
----- -----
Stockholders' equity:
Ordinary shares par
value NIS 0.01 per
share; Authorized
50,000,000; 58 40
Issued and
outstanding:
20,912,754 shares as
of June 30, 2018;
14,435,161 shares as
of December 31, 2017
Additional paid-in
capital 172,824 92,381
Accumulated other
comprehensive loss (29) (7)
Accumulated deficit (81,810) (76,619)
------- -------
Total stockholders'
equity 91,043 15,795
------ ------
Total liabilities and
stockholders' equity $94,847 $19,643
======= =======
GALMED PHARMACEUTICALS LTD.
Consolidated Statements of Operations (Unaudited)
------------------------------------------------
U.S. Dollars in thousands, except share data and per share data
Three months ended Six months ended
June 30, June 30,
-------- --------
2018 2017 2018 2017
---- ---- ---- ----
Revenue $270 $270 $538 $538
Research and development expenses 1,940 2,347 3,884 5,090
General and administrative expenses 1,105 624 1,988 1,413
----- --- ----- -----
Total operating expenses 2,775 2,701 5,334 5,965
Financial expenses (income), net (90) (9) (143) (111)
--- --- ---- ----
Loss before income taxes 2,685 2,692 5,191 5,854
Taxes on Income - - - -
--- --- --- ---
Net loss $2,685 $2,692 $5,191 $5,854
====== ====== ====== ======
Basic and diluted net loss per share $0.17 $0.22 $0.34 $0.48
===== ===== ===== =====
Weighted-average number of shares outstanding 15,711,736 12,175,147 15,243,785 12,171,668
used in computing basic and diluted net loss per share
GALMED PHARMACEUTICALS LTD.
Consolidated Statements of Cash Flows (Unaudited)
------------------------------------------------
U.S. Dollars in thousands
Six months ended
June 30,
--------
2018 2017
---- ----
Cash flow from operating
activities
Net loss $(5,191) $(5,854)
Adjustments required to
reconcile net loss to
net cash used
in operating activities
Depreciation and
amortization 118 120
Stock-based compensation
expense 417 709
Amortization of discount/
premium on marketable
securities (4) (207)
Loss from Realization of
marketable securities 5 115
Changes in operating
assets and liabilities:
Decrease (increase) in
other accounts
receivable (213) 18
Increase (decrease) in
trade payables 70 (757)
Increase (decrease) in
other accounts payable 424 (178)
Decrease in related party - (117)
Decrease in deferred
revenue (538) (538)
---- ----
Net cash used in
operating activities (4,912) (6,689)
------ ------
Cash flow from investing
activities
Purchase of property and
equipment (1) (8)
Investment in available
for sale securities (85,174) -
Consideration from sale
of available for sale
securities 3,173 5,100
----- -----
Net cash provided in
(used in) investing
activities (82,002) 5,092
------- -----
Cash flow from financing
activities
Issuance of Ordinary
Shares 79,164 -
Proceeds from exercise of
options 880 247
--- ---
Net cash provided in
financing activities 80,044 247
------ ---
Decrease in cash and cash
equivalents (6,870) (1,350)
Cash and cash equivalents
at the beginning of the
period 13,021 3,097
------ -----
Cash and cash equivalents
at the end of the period $6,151 $1,747
====== ======
Supplemental disclosure
of cash flow
information:
Cash received from
interest $171 136
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SOURCE Galmed Pharmaceuticals Ltd.
Company Codes: Berlin:GPH, NASDAQ-SMALL:GLMD, Frankfurt:GPH, Stuttgart:GPH