CAMBRIDGE, Mass., March 18, 2020 (GLOBE NEWSWIRE) -- Anchiano Therapeutics Ltd. (Nasdaq: ANCN) (“Anchiano”), a biopharmaceutical company focused on discovery and development of novel therapies to treat cancer, today reported financial results for the year ended December 31, 2019.
Key Developments
Year Ended December 31, 2019 Financial Results:
On December 31, 2019, Anchiano had total cash and cash equivalents of approximately $17.6 million. Financial resources are expected to suffice through the end of 2020.
Research and development expenses for the year ended December 31, 2019 were approximately $13.3 million, compared to approximately $7.5 million for the same period in 2018. This increase was mainly due to an increase in clinical trial expenses, manufacturing expenses and manpower expenses, as well as additional startup and initial ongoing expenses in connection with the Collaboration Agreement with ADT.
General and administrative expenses for the year ended December 31, 2019 were approximately $6.2 million, compared to expenses of approximately $5.5 million for the same period in 2018. The increase was mainly due to increases in professional fees, insurance and manpower expenses, offset by a decrease in share-based payment.
Financing expenses, net, in the year ended December 31, 2019 were approximately $4.2 million, compared to approximately $457 thousand for the same period in 2018. This change was mainly due to a revaluation of investor warrants at fair value during a period where these could not be classified within shareholders’ equity.
Restructuring expenses in the year ended December 31, 2019 were approximately $3.4 million, and were comprised principally of contract termination costs and employee severance and associated termination costs related to the reduction of workforce resulting from Anchiano’s decision to discontinue its Phase 2 Codex as described above.
Net loss for the year ended December 31, 2019 was approximately $27.1 million compared to approximately $13.8 million for the same period in 2018.
About Anchiano
Anchiano is a biopharmaceutical company dedicated to the discovery, development, and commercialization of novel targeted therapies to treat cancer in areas of significant clinical need, with its headquarters in Cambridge, MA. Anchiano is developing small-molecule pan-RAS inhibitors and inhibitors of PDE10 and the β-catenin pathway. For more information on Anchiano, please visit www.anchiano.com.
Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to risks and uncertainties. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond the control of Anchiano, including, without limitation, the risk factors and other matters set forth in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019. Anchiano undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Company Contact:
Frank Haluska, M.D., Ph.D.
President and Chief Executive Officer
info@anchiano.com
Investor Contact:
Ashley R. Robinson
Managing Director
LifeSci Advisors, LLC
617-430-7577
arr@lifesciadvisors.com
RESULTS OF OPERATIONS (unaudited)
U.S. dollars in thousands
Year Ended December 31, | |||
2019 | 2018 | ||
Operating expenses | |||
Research and development expenses | 13,303 | 7,514 | |
Restructuring expenses | 3,350 | - | |
General and administrative expenses | 6,245 | 5,521 | |
Operating loss | 22,898 | 13,035 | |
Financing expenses, net | 4,226 | 457 | |
Loss before income tax | 27,124 | 13,492 | |
Income tax | - | 306 | |
Net loss for the period | 27,124 | 13,798 |
STATEMENTS OF FINANCIAL POSITION (unaudited)
U.S. dollars in thousands
December 31, 2019 | December 31, 2018 | ||
Assets | |||
Current Assets | 18,211 | 10,920 | |
Non-Current Assets | 1,544 | 1,841 | |
Total Assets | 19,755 | 12,761 | |
Liabilities | |||
Current Liabilities | 4,121 | 2,746 | |
Non-Current Liabilities | 725 | 210 | |
Total Liabilities | 4,846 | 2,956 | |
Equity | |||
Total equity (deficiency) | 14,909 | 9,805 | |
Total Liabilities and Equity | 19,755 | 12,761 |
CASH FLOWS (unaudited)
U.S. dollars in thousands
Year Ended December 31, | |||||
2019 | 2018 | ||||
Net cash used in operating activities | (16,458 | ) | (14,223 | ) | |
Net cash used in investing activities | (95 | ) | (213 | ) | |
Net cash provided by financing activities | 26,621 | 20,619 | |||
Net increase in cash and cash equivalents | 10,068 | 6,183 |