Mirati Therapeutics Reports First Quarter Financial Results

SAN DIEGO, May 7, 2018 /PRNewswire/ -- Mirati Therapeutics, Inc. (NASDAQ: MRTX), a clinical-stage oncology company, today reported financial results for the first quarter ended March 31, 2018.

"We have made significant progress in all of our programs and continue to be encouraged by positive clinical results for sitravatinib and mocetinostat with planned data presentations at a fall oncology conference," said Charles M. Baum, M.D., Ph.D., President and Chief Executive Officer. "Additionally, we are on track to file our planned Investigational New Drug application (IND) for MRTX849, a potent and selective inhibitor for KRAS, in the fourth quarter of 2018."

Financial Results for the First Quarter 2018

Cash, cash equivalents, and short-term investments were $148.7 million at March 31, 2018, compared to $150.8 million at December 31, 2017.

License and collaboration revenues for the first quarter of 2018 were $9.5 million, compared to none in the same period in 2017. License and collaboration revenues relate to the Collaboration and License Agreement between the Company and BeiGene, Ltd. ("BeiGene"), which became effective January 7, 2018, under which the Company granted BeiGene an exclusive license to develop, manufacture and commercialize sitravatinib in Asia (excluding Japan and certain other countries).

Research and development expenses for the first quarter of 2018 were $19.7 million, compared to $14.4 million for the same period in 2017. The increase in research and development expenses is primarily due to an increase in third party research and development expense for sitravatinib due to the continuation and expansion of ongoing clinical trials. The increase is also related to continued development of our KRAS inhibitor program for costs associated with preparing to file a planned IND application for our selected lead clinical compound, MRTX849. These increases are partially offset by a decrease in glesatinib expenses.

General and administrative expenses for the first quarter of 2018 were $5.2 million, compared to $3.7 million for the same period in 2017. The increase is primarily due to an increase in share-based compensation expense due to an increase in the fair value of stock options granted during the three months ended March 31, 2018 compared to the same period in 2017.

Net loss for the first quarter of 2018 was $14.7 million, or $0.51 per share basic and diluted, compared to net loss of $17.8 million, or $0.73 per share basic and diluted for the same period in 2017.

About Mirati Therapeutics

Mirati Therapeutics, Inc. is a clinical-stage oncology company developing targeted product candidates to address the genetic, epigenetic and immunological promoters of cancer. Our precision oncology clinical programs utilize next-generation genomic testing to identify and select cancer patients who are most likely to benefit from targeted drug treatment. In immuno-oncology, we are advancing clinical programs where the ability of our product candidates to improve the immune environment of tumor cells may enhance and expand the efficacy of existing immunotherapy medicines when given in combination. Our pre-clinical programs include potentially first-in-class and best-in-class product candidates specifically designed to address mutations and tumors where few treatment options exist. We approach each of our discovery and development programs with a singular focus: to translate our deep understanding of the molecular drivers of cancer into better therapies and better outcomes for patients. For more information, visit www.mirati.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release regarding the business of Mirati Therapeutics, Inc. ("Mirati") that are not historical facts may be considered "forward-looking statements," including without limitation statements regarding Mirati's development plans and timelines, potential regulatory actions, expected use of cash resources, the timing and results of clinical trials, and the potential benefits of and markets for Mirati's product candidates. Forward-looking statements are typically, but not always, identified by the use of words such as "may," "will," "would," "believe," "intend," "plan," "anticipate," "estimate," "expect," and other similar terminology indicating future results. Forward-looking statements are based on current expectations of management and on what management believes to be reasonable assumptions based on information currently available to them, and are subject to risks and uncertainties. Such risks and uncertainties may cause actual results to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include without limitation potential delays in development timelines, negative clinical trial results, reliance on third parties for development efforts, changes in the competitive landscape, changes in the standard of care, as well as other risks detailed in Mirati's recent filings on Forms 10-K and 10-Q with the U.S. Securities and Exchange Commission. Except as required by law, Mirati undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.

                     Mirati Therapeutics, Inc.

                    Consolidated Balance Sheets

                           (in thousands)


                            March 31,                December 31,

                                                2018                  2017
                                                ----                  ----

                           (unaudited)

    Assets

    Current assets

    Cash, cash
     equivalents
     and short-
     term
     investments                            $148,652              $150,837

    Other current
     assets                                    4,421                 4,922
                                               -----                 -----

    Total current
     assets                                  153,073               155,759

    Property and
     equipment, net                              484                   525

    Other assets                                 987                   962
                                                 ---                   ---

    Total assets                            $154,544              $157,246
                                            ========              ========


    Liabilities and
     Stockholders'
     Equity

    Current
     liabilities

    Accounts
     payable and
     accrued
     liabilities                             $15,761               $13,644

    Deferred
     revenue and
     other current                               249                     -

        liabilities

    Total current
     liabilities                              16,010                13,644

    Deferred
     revenue and
     other
     liabilities                                 693                   314
                                                 ---                   ---

    Total
     liabilities                              16,703                13,958


    Stockholders'
     equity                                  137,841               143,288
                                             -------               -------


    Total
     liabilities
     and
     stockholders'
     equity                                 $154,544              $157,246
                                            ========              ========

 

                                Mirati Therapeutics, Inc.

              Consolidated Statements of Operations and Comprehensive Loss

                     (in thousands except per share data, unaudited)


                                                           Three Months Ended March 31,
                                                           ----------------------------

                                                                       2018                     2017
                                                                       ----                     ----

    Revenues

    License and
     collaboration revenues                                          $9,467             $          -

    Total revenue                                                     9,467                        -


    Expenses

    Research and development                                        $19,659                  $14,397

    General and
     administrative                                                   5,154                    3,693
                                                                      -----

    Total operating expenses                                         24,813                   18,090


    Loss from operations                                           (15,346)                (18,090)


    Other income, net                                                   637                      244
                                                                        ---                      ---


    Net loss                                                      $(14,709)               $(17,846)
                                                                   ========                 ========


    Unrealized gain (loss)
     on available-for-sale
     investments                                                      (288)                      71


    Comprehensive loss                                            $(14,997)               $(17,775)
                                                                   ========                 ========


    Basic and diluted net
     loss per share                                                 $(0.51)                 $(0.73)
                                                                     ======                   ======



    Weighted average number
     of shares used in
     computing net loss per
     share, basic and
     diluted                                                         28,844                   24,384

 

 

 

CONTACT: Temre Johnson, Mirati Therapeutics Inc., Senior Manager, Investor Relations & Corporate Communications, (858) 332-3562, ir@mirati.com

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SOURCE Mirati Therapeutics, Inc.

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