Mirati Therapeutics, Inc. reported financial results for the second quarter ended June 30, 2018.
SAN DIEGO, Aug. 1, 2018 /PRNewswire/ -- Mirati Therapeutics, Inc. (NASDAQ: MRTX), a clinical-stage targeted oncology company, today reported financial results for the second quarter ended June 30, 2018.
"In June we successfully completed a financing, with net proceeds of $130.7 million, enabling us to expand our sitravatinib and KRAS programs," said Charles M. Baum, M.D., Ph.D., President and Chief Executive Officer. "We plan to present sitravatinib data at the 2018 European Society of Medical Oncologists Congress (ESMO) in October and to file our Investigational New Drug application (IND) for MRTX849, a potent and selective inhibitor of KRAS G12C, in the fourth quarter of 2018."
Financial Results for the Second Quarter 2018
Cash, cash equivalents, and short-term investments were $260.2 million at June 30, 2018, compared to $150.8 million at December 31, 2017. In June 2018, we completed a public offering of our common stock and pre-funded common stock warrants with net proceeds of $130.7 million.
License and collaboration revenues for the six months ended June 30, 2018 were $9.5 million, compared to none in the same period of 2017. License and collaboration revenues relate to the Collaboration and License Agreement between the Company and BeiGene, Ltd., which became effective January 7, 2018.
Research and development expenses for the second quarter of 2018 were $23.8 million, compared to $15.0 million for the same period in 2017. Research and development expenses for the six months ended June 30, 2018 were $43.5 million compared to $29.4 million for the same period in 2017. The increase in research and development expenses for both the three and six months ended June 30, 2018 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 second quarter of 2018 were $4.8 million, compared to $3.7 million for the same period in 2017. General and administrative expenses for the six months ended June 30, 2018 were $10.0 million compared to $7.3 million for the same period of 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 and six months ended June 30, 2018 compared to the same periods in 2017.
Net loss for the second quarter of 2018 was $27.9 million, or $0.94 per share basic and diluted, compared to net loss of $18.3 million, or $0.74 per share basic and diluted for the same period in 2017. Net loss for the six months ended June 30, 2018 was $42.6 million, or $1.45 per share, compared to $36.2 million, or $1.47 per share, for the same period of 2017.
About Mirati Therapeutics
Mirati Therapeutics, Inc. is a clinical-stage oncology company developing 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 we believe would be most likely to benefit from targeted drug treatment. In immuno-oncology, we are advancing clinical programs where our product candidates have the potential to improve the immune environment of tumor cells and may enhance and expand the efficacy of existing cancer 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)
June 30, 2018 December 31,
2017
----
(Unaudited)
Assets
Current assets
Cash, cash equivalents and
short-term investments $260,184 $150,837
Other current assets 3,412 4,922
----- -----
Total current assets 263,596 155,759
Property and equipment, net 445 525
Other long-term assets 1,146 962
Total assets $265,187 $157,246
======== ========
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable and accrued
liabilities $17,811 $13,644
Deferred revenue 318 -
--- ---
Total current liabilities 18,129 13,644
Deferred revenue and other
liabilities 714 314
Total liabilities 18,843 13,958
------ ------
Stockholders' equity 246,344 143,288
------- -------
Total liabilities and
stockholders' equity $265,187 $157,246
======== ========
Mirati Therapeutics, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(in thousands except per share data, unaudited)
Three Months Ended Six months ended
June 30, June 30,
--------
2018 2017 2018 2017
---- ---- ---- ----
Revenues
License and collaboration revenues $ - $ - $9,467 $ -
--- --- --- --- ------ --- ---
Total Revenue - - 9,467 -
Operating Expenses
Research and development $23,829 $14,962 $43,488 $29,359
General and administrative 4,841 3,654 9,995 7,347
-----
Total operating expenses 28,670 18,616 53,483 36,706
Loss from operations (28,670) (18,616) (44,016) (36,706)
Other income, net 801 277 1,438 521
--- --- ----- ---
Net loss $(27,869) $(18,339) $(42,578) $(36,185)
======== ======== ======== ========
Unrealized gain (loss) on
available-for-sale investments 154 (104) (134) (33)
--- ---- ---- ---
Comprehensive loss $(27,715) $(18,443) $(42,712) $(36,218)
======== ======== ======== ========
Basic and diluted net loss per
share $(0.94) $(0.74) $(1.45) $(1.47)
====== ====== ====== ======
Weighted average number of shares
used in computing net loss per
share, basic and diluted 29,758 24,950 29,303 24,669
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SOURCE Mirati Therapeutics, Inc.
Company Codes: NASDAQ-SMALL:MRTX
