News Business

Nuvation Bio Reports Second Quarter 2023 Financial Results and Provides Business Update

August 3, 2023 |

8 min read

Nuvation Bio Inc. (NYSE: NUVB), a biopharmaceutical company tackling some of the greatest unmet needs in oncology by developing differentiated and novel therapeutic candidates, today reported its financial results for the second quarter ended June 30, 2023, and provided a business update.

Enrollment ongoing in the Phase 1b study of NUV-868 in combination with olaparib or enzalutamide

Enrollment ongoing in the Phase 1 monotherapy study of NUV-868

Expect to submit an IND for first Drug-Drug Conjugate (DDC) clinical candidate by year end 2023

Announced formation of oncology-focused Scientific Advisory Board

Strong balance sheet with cash, cash equivalents and marketable securities of $630.9 million as of June 30, 2023

NEW YORK--(BUSINESS WIRE)-- Nuvation Bio Inc. (NYSE: NUVB), a biopharmaceutical company tackling some of the greatest unmet needs in oncology by developing differentiated and novel therapeutic candidates, today reported its financial results for the second quarter ended June 30, 2023, and provided a business update.

“We continue to enroll patients in the Phase 1 and Phase 1b studies of NUV-868 where dose escalation is ongoing. We also look forward to expanding our pipeline as we progress our first nominated DDC clinical candidate toward an IND filing, which we expect by the end of 2023,” said David Hung, M.D., Founder, President, and Chief Executive Officer of Nuvation Bio. “Lastly, we announced the formation of our Scientific Advisory Board, composed of leading experts in oncology drug and clinical development. We are excited to work alongside them to bring innovative new therapies to cancer patients.”

Recent Business Updates

NUV-868, BD2-Selective BETi: Advanced solid tumors

Dosing underway in both regimens of the Phase 1b combination study. Nuvation Bio continues to enroll the Phase 1b study of NUV-868 in combination with olaparib in patients with ovarian cancer, pancreatic cancer, metastatic castration-resistant prostate cancer (mCRPC), triple negative breast cancer and other solid tumors, and in combination with enzalutamide in patients with mCRPC.
Dosing underway in the Phase 1 monotherapy study. Nuvation Bio continues to enroll the Phase 1 monotherapy study in advanced solid tumors.

Drug-Drug Conjugate Platform: Solid tumors

Nominated first clinical candidate. Nuvation Bio remains on track to submit an Investigational New Drug (IND) application for an undisclosed DDC candidate with the U.S. Food and Drug Administration by year end 2023.

Corporate Updates

Announced formation of oncology-focused Scientific Advisory Board. The Scientific Advisory Board will work alongside the Nuvation Bio management team to advance its pipeline of therapeutic candidates for some of the most difficult-to-treat cancers.

Second Quarter 2023 Financial Results

As of June 30, 2023, Nuvation Bio had cash, cash equivalents and marketable securities of $630.9 million. For the three months ended June 30, 2023, research and development expenses were $18.6 million, compared to $28.9 million for the three months ended June 30, 2022. The decrease was primarily due to a $0.7 million decrease in personnel-related costs driven by a headcount reduction as well as a $9.6 million decrease in third-party costs related to research services and manufacturing primarily due to the termination of the NUV-422 program.

For the three months ended June 30, 2023, general and administrative expenses were $7.5 million, compared to $8.9 million for the three months ended June 30, 2022. The decrease was primarily due to a $0.6 million decrease in insurance, a $0.6 million decrease in recruiting and computer expenses, a $0.6 million decrease in legal fees and a $0.2 million decrease in other professional fees offset by a $0.6 million increase in personnel-related costs driven by stock-based compensation and other benefits.

For the three months ended June 30, 2023, Nuvation Bio reported a net loss of $20.6 million, or $(0.09) per share. This compares to a net loss of $34.9 million, or $(0.16) per share, for the comparable period in 2022.

About Nuvation Bio

Nuvation Bio is a biopharmaceutical company tackling some of the greatest unmet needs in oncology by developing differentiated and novel therapeutic candidates. Nuvation Bio’s proprietary portfolio includes mechanistically distinct oncology therapeutic product candidates, each targeting some of the most difficult-to-treat types of cancer. Nuvation Bio was founded in 2018 by biopharma industry veteran David Hung, M.D., who previously founded Medivation, Inc., which brought to patients one of the world’s leading prostate cancer medicines. Nuvation Bio has offices in New York and San Francisco. For more information, please visit www.nuvationbio.com.

Forward Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the potential therapeutic benefit of Nuvation Bio’s product candidates, the expected continued momentum of Nuvation Bio’s clinical trials and the expected timing of an IND filing for Nuvation Bio’s first DDC clinical candidate. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management team of Nuvation Bio and are not predictions of actual performance. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ from those anticipated by the forward-looking statements, including but not limited to the challenges associated with conducting drug discovery and initiating or conducting clinical trials due to, among other things, difficulties or delays in the regulatory process, enrolling subjects or manufacturing or acquiring necessary products; the emergence or worsening of adverse events or other undesirable side effects; risks associated with preliminary and interim data, which may not be representative of more mature data; and competitive developments. Risks and uncertainties facing Nuvation Bio are described more fully in its Form 10-Q to be filed with the SEC on August 3, 2023, under the heading “Risk Factors,” and other documents that Nuvation Bio has filed or will file with the SEC. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release. Nuvation Bio disclaims any obligation or undertaking to update, supplement or revise any forward-looking statements contained in this press release.

NUVATION BIO INC. and Subsidiaries
Consolidated Balance Sheets
Unaudited
(In thousands, except share and per share data)	June 30,			December 31,
	2023			2022

Assets
Current assets:
Cash and cash equivalents	$	50,065		$	101,099
Prepaid expenses and other current assets		3,531			3,819
Marketable securities		580,835			559,915
Interest receivable on marketable securities		2,795			2,485
Total current assets		637,226			667,318
Property and equipment, net		804			894
Operating lease right-of-use assets		3,242			3,791
Lease security deposit		138			138
Total assets	$	641,410		$	672,141

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	2,577		$	2,139
Current operating lease liabilities		1,283			1,206
Accrued expenses		9,553			9,816
Total current liabilities		13,413			13,161
Warrant liability		972			850
Non-current operating lease liabilities		2,393			3,054
Total liabilities		16,778			17,065

Stockholders’ equity
Class A and Class B common stock and additional paid in capital, $0.0001 par value per share; 1,060,000,000
(Class A 1,000,000,000, Class B 60,000,000) shares authorized as of June 30, 2023 and December 31, 2022,
218,899,462 (Class A 217,899,462, Class B 1,000,000) and 218,632,699 (Class A 217,632,699, Class B 1,000,000)
shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		938,395			927,604
Accumulated deficit		(309,368	)		(267,002	)
Accumulated other comprehensive income		(4,395	)		(5,526	)
Total stockholders’ equity		624,632			655,076
Total liabilities and stockholders’ equity	$	641,410		$	672,141

NUVATION BIO INC. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022

Operating expenses:
Research and development	$	18,590		$	28,922		$	37,377		$	49,650
General and administrative		7,541			8,948			15,275			16,411
Total operating expenses		26,131			37,870			52,652			66,061

Loss from operations		(26,131	)		(37,870	)		(52,652	)		(66,061	)

Other income (expense):
Interest income		6,086			841			11,065			1,798
Investment advisory fees		(231	)		(215	)		(461	)		(384	)
Change in fair value of warrant liability		(265	)		3,080			(123	)		9,404
Realized loss on marketable securities		(99	)		(694	)		(195	)		(908	)
Total other income (expense), net		5,491			3,012			10,286			9,910

Loss before income taxes		(20,640	)		(34,858	)		(42,366	)		(56,151	)

Provision for income taxes		-			-			-			-

Net loss	$	(20,640	)	$	(34,858	)	$	(42,366	)	$	(56,151	)
Net loss attributable to common stockholders
Net loss per share attributable to common stockholders, basic and diluted	$	(0.09	)	$	(0.16	)	$	(0.19	)	$	(0.26	)
Weighted average common shares outstanding, basic and diluted		218,848			216,603			218,795			215,016

Comprehensive loss:
Net loss	$	(20,640	)	$	(34,858	)	$	(42,366	)	$	(56,151	)
Other comprehensive loss, net of taxes:
Unrealized (loss) gain on available-for-sale securities		(1,457	)		(761	)		1,131			(5,793	)

Comprehensive loss	$	(22,097	)	$	(35,619	)	$	(41,235	)	$	(61,944	)