KalVista Pharmaceuticals Provides Operational Update and Fiscal Year Financial Results - July 13, 2021

July 13, 2021 10:30 UTC
  • FDA End-of-Phase 2 Meeting on KVD900 Oral HAE Phase 3 Program Scheduled for Late Q3 2021
  • FDA Response Submission for KVD824 Phase 2 Clinical Hold Expected Q3 2021

CAMBRIDGE, Mass. & SALISBURY, England--(BUSINESS WIRE)-- KalVista Pharmaceuticals, Inc. (NASDAQ: KALV), a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of small molecule protease inhibitors, today provided an operational update and released financial results for the fiscal year ended April 30, 2021.

“This past fiscal year we made great strides in providing data to support the development of the candidates in our oral hereditary angioedema franchise,” said Andrew Crockett, Chief Executive Officer of KalVista. “Now we are at an important inflection point as we work with regulatory agencies to both finalize the Phase 3 program for KVD900 and begin the Phase 2 clinical trial of KVD824. With our financing earlier this year we are well-capitalized to focus on execution of these activities, and we look forward to providing additional details on the trials later this year as they begin.”

Fiscal 2021 and Recent Business Highlights:

  • Reported positive results for KVD900 in a Phase 2 clinical trial demonstrating statistically and clinically significant responses across primary and secondary endpoints as an oral on-demand treatment for hereditary angioedema (HAE) attacks. An end-of-Phase 2 meeting has been scheduled late in the third quarter of calendar year 2021 with the Food and Drug Administration (FDA) to review the planned KVD900 Phase 3 program.
  • Provided data on KVD824 as a twice-daily oral candidate for prophylactic treatment of HAE. Work to optimize the exposure profile of KVD824 yielded a formulation that maintained the plasma concentrations that KalVista believes are required to compete with approved injectable therapies, while showing an encouraging safety and tolerability profile in up to 14 days of dosing.
  • Announced a novel oral Factor XIIa inhibitor program as the next area of focus. KalVista’s internal research team has discovered multiple series of oral Factor XIIa inhibitors, initially being advanced with the potential to provide the next generation of HAE therapeutics. Investigational New Drug (IND)-enabling studies for oral Factor XIIa inhibitor candidates are expected to commence in calendar year 2021.
  • Closed an upsized public offering of common stock and full exercise of the underwriters’ options to purchase additional shares. The gross proceeds, before deducting the underwriting discounts and commissions and other offering expenses were approximately $222.5 million.
  • Appointed Nancy Stuart to the Board of Directors of the Company.
  • Submitted an IND for a Phase 2 clinical trial to evaluate KVD824 as a potential prophylactic treatment for the prevention of HAE attacks. The U.S. FDA notified the Company in a letter that it has placed a clinical hold on the proposed Phase 2 clinical trial of KVD824. The FDA letter requested further information and analysis related to certain preclinical studies of KVD824 submitted to support the planned Phase 2 trial, as well as refinements to the intended KVD824 Phase 2 study protocol. The Company intends to submit its response to the FDA during the third quarter of calendar year 2021. KalVista also continues to progress regulatory filings for other countries where it plans to initiate sites for the KVD824 Phase 2.
  • Expanded senior leadership team with appointment of Paul K. Audhya, MD, MBA as Chief Medical Officer.
  • Presented data from oral HAE franchise at the C1-Inhibitor Deficiency & Angioedema Workshop.

Fourth Quarter and Full Year Financial Results:

  • Revenue: No revenue was recognized for the three months ended April 30, 2021, compared to $3.8 million for the same period in the prior fiscal year. No revenue was recognized for the fiscal year ended April 30, 2021, compared to $12.7 million for the prior fiscal year. All of the revenue recognized in the prior fiscal year was attributable to the revenue recognized from the Merck Option Agreement and the absence of revenue in the current year was due to the expiration of that agreement in February 2020.
  • R&D Expenses: Research and development expenses were $11.9 million for the three months ended April 30, 2021, compared to $9.5 million for the same period in the prior fiscal year. Research and development expenses were $41.3 million for the fiscal year ended April 30, 2021, compared to $40.2 million for the prior fiscal year. The increase in spending in the fiscal year ended April 30, 2021 primarily reflects increased costs related to the ongoing clinical trials for KVD900 and KVD824, offset by a decrease in spending on KVD001 due to the conclusion of the Phase 2 clinical trial in December 2019 and a decrease in preclinical spending.
  • G&A Expenses: General and administrative expenses were $6.2 million for the three months ended April 30, 2021, compared to $3.3 million for the same period in the prior fiscal year. General and administrative expenses were $16.6 million for the fiscal year ended April 30, 2021, compared to $13.0 million for the prior fiscal year. The increase in G&A expenses was primarily due to an increase in compensation related expenses and to a lesser extent, increases in professional fees, insurance costs, facility costs and other administrative costs.
  • Net Loss: Net loss was $15.0 million, or $(0.65) per weighted average basic and diluted share, for the three months ended April 30, 2021, compared to net loss of $6.6 million, or $(0.37) per weighted average basic and diluted share for the same period in the prior fiscal year. Net loss was $46.2 million, or $(2.42) per weighted average basic and diluted share for the fiscal year ended April 30, 2021, compared to net loss of $29.1 million, or $(1.64) per weighted average basic and diluted share in the prior fiscal year. The increase in net loss and net loss per share primarily resulted from the absence of revenue in the current fiscal year due to the expiration of the Merck Option Agreement in February 2020, as well as increased spending on research and development activities in the current fiscal year.
  • Cash Position: Cash, cash equivalents and marketable securities were $248.9 million as of April 30, 2021, compared to $67.7 million as of April 30, 2020. The increase in the net cash position in the current fiscal year is primarily due to the proceeds received in the February 2021 public offering of common stock.

On July 11, 2021, the Board of Directors adopted the KalVista Pharmaceuticals, Inc. 2021 Inducement Equity Incentive Plan (the “Plan”). The Plan reserves 350,000 shares of common stock to be used exclusively for grants of awards to individuals that were not previously employees or directors of KalVista, as an inducement material to the individual’s entry into employment with KalVista within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. The Plan was approved by Board of Directors without stockholder approval pursuant to Rule 5635(c)(4), and the terms and conditions of the Plan are substantially similar to KalVista’s stockholder-approved 2017 Equity Incentive Plan, as amended.

About KalVista Pharmaceuticals, Inc.

KalVista Pharmaceuticals, Inc. is a pharmaceutical company focused on the discovery, development, and commercialization of small molecule protease inhibitors for diseases with significant unmet need. KalVista has developed a proprietary portfolio of novel, small molecule plasma kallikrein inhibitors initially targeting hereditary angioedema (HAE) and diabetic macular edema (DME). KalVista is developing KVD900 as an oral on-demand therapy for acute HAE attacks, which completed a Phase 2 efficacy trial in February 2021, demonstrating statistical and clinical significance across all endpoints. KVD824 is in development for prophylactic treatment of HAE. In addition, KalVista’s oral Factor XIIa inhibitor program represents a new generation of therapies that may further improve the treatment of HAE for patients. In DME, an intravitreally administered plasma kallikrein inhibitor, called KVD001, has completed a Phase 2 clinical trial.

For more information, please visit www.kalvista.com.

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. These statements are subject to numerous risks and uncertainties, including the potential impact of COVID-19, that could cause actual results to differ materially from what we expect. Examples of forward-looking statements include, among others, our expectations about safety and efficacy of our product candidates and timing of clinical trials and its results, our ability to commence or complete clinical studies and to obtain regulatory approvals for KVD900, KVD824 and other candidates in development, our ability to resolve a clinical hold with regards to KVD824, the ability of KVD900, KVD824 and other candidates in development to treat HAE or DME, the future progress and potential success of our oral Factor XIIa program, and the sufficiency of our cash, cash equivalents and investments to fund our operations. Further information on potential risk factors that could affect our business and financial results are detailed in our filings with the Securities and Exchange Commission, including in our annual report on Form 10-K for the year ended April 30, 2021 once filed, our quarterly reports on Form 10-Q, and our other reports that we may make from time to time with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

 
KalVista Pharmaceuticals Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(Unaudited)
         
   

April 30,

 

April 30,

   

2021

 

2020

Assets        
Current assets:        
Cash and cash equivalents  

$

50,592

   

$

15,789

 
Marketable securities    

198,337

     

51,925

 
Research and development tax credit receivable    

10,418

     

16,527

 
Prepaid expenses and other current assets    

4,917

     

4,455

 
Total current assets    

264,264

     

88,696

 
Property and equipment, net    

1,791

     

2,043

 
Right of use assets    

5,758

     

1,612

 
Other assets    

200

     

178

 
Total assets  

$

272,013

   

$

92,529

 
Liabilities and stockholders' equity        
Current liabilities:        
Accounts payable  

$

1,981

   

$

1,677

 
Accrued expenses    

6,930

     

5,455

 
Lease liability - current portion    

863

     

588

 
Total current liabilities    

9,774

     

7,720

 
Long-term liabilities:        
Lease liability - net of current portion    

5,046

     

1,057

 
Total long-term liabilities    

5,046

     

1,057

 
Stockholders’ equity:        
Common stock, $0.001 par value    

24

     

18

 
Additional paid-in capital    

426,437

     

207,208

 
Accumulated deficit    

(167,836

)

   

(121,592

)

Accumulated other comprehensive loss    

(1,432

)

   

(1,882

)

Total stockholders’ equity    

257,193

     

83,752

 
Total liabilities and stockholders' equity  

$

272,013

   

$

92,529

 
 
KalVista Pharmaceuticals Inc.
Condensed Consolidated Statement of Operations
(in thousands, except share and per share amounts)
(Unaudited)
                 
                 
   

Three Months Ended

 

Years Ended

   

April 30,

 

April 30,

   

2021

 

2020

 

2021

 

2020

                 
Revenue  

$

-

   

$

3,824

   

$

-

   

$

12,690

 
Operating expenses:                
Research and development    

11,877

     

9,485

     

41,286

     

40,194

 
General and administrative    

6,165

     

3,296

     

16,637

     

13,029

 
Total operating expenses    

18,042

     

12,781

     

57,923

     

53,223

 
Operating loss    

(18,042

)

   

(8,957

)

   

(57,923

)

   

(40,533

)

                 
Other income:                
Interest income    

314

     

363

     

903

     

1,830

 
Foreign currency exchange rate gain (loss)    

132

     

(613

)

   

847

     

(367

)

Other income    

2,639

     

2,498

     

9,929

     

9,830

 
Total other income    

3,085

     

2,248

     

11,679

     

11,293

 
Loss before income taxes    

(14,957

)

   

(6,709

)

   

(46,244

)

   

(29,240

)

Income tax (benefit) expense    

-

     

(124

)

   

-

     

(124

)

Net loss  

$

(14,957

)

 

$

(6,585

)

 

$

(46,244

)

 

$

(29,116

)

                 
Net loss per share, basic and diluted  

$

(0.65

)

 

$

(0.37

)

 

$

(2.42

)

 

$

(1.64

)

                 
Weighted average common shares outstanding, basic and diluted    

23,118,127

     

17,845,599

     

19,094,440

     

17,748,666

 
 
KalVista Pharmaceuticals Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
         
   

Years Ended

   

April 30,

   

2021

 

2020

         
Cash flows from operating activities        
Net loss  

$

(46,244

)

 

$

(29,116

)

Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization    

537

     

512

 
Stock-based compensation expense    

7,118

     

4,448

 
Realized (gain) from sale of marketable securities    

(153

)

   

(300

)

Non-cash operating lease expense    

114

     

13

 
Amortization of premium on available for sale securities    

685

     

193

 
Foreign currency exchange (gain) loss    

(574

)

   

74

 
Changes in operating assets and liabilities:        
Research and development tax credit receivable    

7,457

     

(5,781

)

Prepaid expenses and other current assets    

(222

)

   

(1,112

)

Other assets    

(22

)

   

(5

)

Accounts payable    

150

     

(1,004

)

Accrued expenses    

983

     

(48

)

Deferred revenue    

-

     

(12,690

)

Net cash used in operating activities    

(30,171

)

   

(44,816

)

         
Cash flows from investing activities        
Purchases of available for sale securities    

(201,210

)

   

(49,797

)

Sales and maturities of available for sale securities    

53,638

     

66,770

 
Acquisition of property and equipment    

(82

)

   

(220

)

Net cash provided by (used in) investing activities    

(147,654

)

   

16,753

 
         
Cash flows from financing activities        
Issuance of common stock, net of offering expenses    

210,582

     

11,422

 
Issuance of common stock from equity incentive plans    

1,535

     

216

 
Finance lease principal payments    

-

     

(54

)

Net cash provided by financing activities    

212,117

     

11,584

 
Effect of exchange rate changes on cash and cash equivalents    

511

     

262

 
Net increase (decrease) in cash and cash equivalents    

34,803

     

(16,217

)

Cash and cash equivalents, beginning of year    

15,789

     

32,006

 
Cash and cash equivalents, end of year  

$

50,592

   

$

15,789

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210713005347/en/

Contacts

KalVista Pharmaceuticals, Inc.
Leah Monteiro
Senior Director, Corporate Communications & Investor Relations
857-999-0808
leah.monteiro@kalvista.com

Source: KalVista Pharmaceuticals, Inc.

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