Sunesis Pharmaceuticals Reports First Quarter 2014 Financial Results and Recent Highlights
Receives FDA Acceptance for Trademark Name Qinprezo™
Sunesis to Host Conference Call Today at
"We have made tremendous progress in the last several quarters across all our programs, bringing Sunesis closer to becoming an integrated oncology company leading with Qinprezo and a growing pipeline of novel and differentiated therapeutic programs," said
Mr. Swisher added: "The coming quarters will also be important for the development of our pipeline, which now includes three proprietary programs and two partnered programs. Supporting this progress is a strong balance sheet, reinforced by a
First Quarter 2014 and Recent Highlights
Continued progress of VALOR trial. Unblinding of the pivotal, Phase 3 VALOR trial of Qinprezo plus cytarabine in first relapsed or refractory acute myeloid leukemia (AML) is expected in the third or fourth quarter of 2014, after reaching 562 events and locking the final study database. The updated guidance for unblinding of the trial reflects a slowing rate of events among the pool of patients in follow up.
Announced data from ongoing
MD Anderson Cancer Center-sponsored trial of Qinprezo and decitabine in frontline AML and high-risk MDS at AACR. In March 2014, Sunesis announced the presentation of updated results from an ongoing Phase 1b/2 University of Texas MD Anderson Cancer Center-sponsoredtrial of Qinprezo in combination with decitabine in older patients with previously untreated AML and high-risk myelodysplastic syndrome (MDS). The combination of Qinprezo and decitabine showed robust clinical benefit and good tolerability in older patients with AML and high-risk MDS. The poster presented at the American Association for Cancer ResearchAnnual Meeting 2014 (AACR), titled "Phase I/II study of vosaroxin and decitabine in older patients (pts) with acute myeloid leukemia (AML) and high risk myelodysplastic syndrome (MDS)," is available on the Sunesis website at www.sunesis.com.
Announced updated data from
MD Anderson Cancer Center-sponsored trial will be presented at ASCO2014 Annual Meeting (Poster #383). Updated data from the ongoing MD Anderson Cancer Center-sponsored study will be presented at the 2014 American Society of Clinical OncologyAnnual Meeting ( ASCO) in Chicago, Illinois. The poster titled "Phase I/II study of vosaroxin and decitabine in older patients with AML and high-risk MDS," will be presented at McCormick Place, S Hall A2, during the Leukemia, Myelodysplasia, and Transplantation Poster Session on Monday, June 2, 2014from 1:15 p.m. to 5:00 p.m. Central Time.
Appointed Chief Commercial Officer. In
February 2014, Sunesis announced the appointment of Joseph I. DePintoto the newly created position of Executive Vice President and Chief Commercial Officer. Mr. DePinto brings over two decades of experience in global commercial operations, including the leadership of the commercial, marketing and strategic development efforts behind a number of prominent oncology products.
Expanded oncology franchise through global licensing agreements with Biogen and Takeda/Millennium. In
January 2014, Sunesis announced that it expanded its oncology franchise through separate global licensing agreements for two preclinical kinase inhibitor programs. The first agreement, with Biogen Idec, is for global commercial rights to SNS-062, a potent and selective non-covalently binding oral inhibitor of BTK (Bruton's tyrosine kinase). BTK is a mediator of B-cell receptor signaling, which is integral to the pathogenesis of B-cell malignancies. Sunesis anticipates filing an investigational new drug (IND) application for SNS-062 with the FDAwithin one year to begin human clinical trials.
The second agreement, with
March 4, 2014, Sunesis completed a $43.0 millionunderwritten offering of 4,650,000 shares of common stock together with two warrants, each to purchase one share of the company's common stock. The public offering price of each share of common stock and two accompanying warrants was $9.25. Net proceeds from the sale were approximately $40.0 million, after deducting the underwriting discount and estimated offering expenses.
The warrants may only be exercised for cash following unblinding of the VALOR trial. The per share exercise price of the first warrant (Series A warrants) is
Cash and investments totaled
$70.7 millionas of March 31, 2014, as compared to $39.3 millionas of December 31, 2013. The increase of $31.4 millionwas primarily due to net proceeds of $45.0 millionfrom equity financing arrangements and the exercise of warrants and stock options, partially offset by $11.4 millionof net cash used in operating activities and $2.3 millionof principal payments against notes payable. As of March 31, 2014, outstanding debt totaled $16.0 million.
Revenue for the three months ended
March 31, 2014and 2013 was $2.0 millionin each period. Revenue in both periods was due to deferred revenue recognized related to the royalty agreement with Royalty Pharma.
Research and development expense was
$7.6 millionfor the three months ended March 31, 2014, as compared to $7.4 millionfor the same period in 2013, primarily relating to the Qinprezo development program in each period. The increase between the periods was primarily due to increases in personnel, licensing, drug manufacturing and consulting costs, partially offset by a reduction in clinical trial expenses.
General and administrative expenses for the three months ended
March 31, 2014were $3.4 million, as compared to $2.4 millionfor the same period in 2013. The increase between the periods was primarily due to an increase in personnel costs, including non-cash stock-based compensation expenses, and from the addition of commercial and medical affairs staff.
Interest expense was
$0.5 millionfor the three months ended March 31, 2014, as compared to $0.8 millionfor the same period in 2013. The decrease in 2014 was due to the reduced principal balance outstanding on notes payable.
Net other expense was
$5.1 millionfor the three months ended March 31, 2014, as compared to $3.0 millionfor the same period in 2013. The amounts for each period were primarily comprised of non-cash charges for the revaluation of warrants issued in the October 2010underwritten offering.
Cash used in operations was
$11.4 millionfor the three months ended March 31, 2014, as compared to $9.5 millionfor the same period in 2013. Net cash used in 2014 resulted primarily from the net loss of $14.6 millionand changes in operating assets and liabilities of $3.2 million, partially offset by net adjustments for non-cash items of $6.4 million.
Net loss was
$14.6 millionfor the three months ended March 31, 2014, as compared to $11.6 millionfor the same period in 2013.
Conference Call Information
Sunesis will host an update conference call today,
VALOR is a Phase 3, randomized, double-blind, placebo-controlled, pivotal trial in patients with first relapsed or refractory AML. The trial enrolled 712 patients at more than 100 leading sites in the U.S.,
Qinprezo™ (vosaroxin) is a first-in-class anti-cancer quinolone derivative (AQD), a class of compounds that has not been used previously for the treatment of cancer. Both the
AML is a rapidly progressing cancer of the blood characterized by the uncontrolled proliferation of immature blast cells in the bone marrow.
Sunesis is a biopharmaceutical company focused on the development and commercialization of new oncology therapeutics for the treatment of solid and hematologic cancers. Sunesis has built a highly experienced cancer drug development organization committed to advancing its lead product candidate, Qinprezo, in multiple indications to improve the lives of people with cancer. For additional information on Sunesis, please visit http://www.sunesis.com.
SUNESIS and the logos are trademarks of
This press release contains forward-looking statements, including statements related to Sunesis' overall strategy, the design, conduct, progress, timing and results of the VALOR trial and Sunesis' other clinical trials, the sufficiency of Sunesis' financial resources and the commercial potential for Qinprezo™ (vosaroxin). Words such as "anticipate," "approximately," "assume," "becoming," "believe," "could," "expect," "potential," "transform," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Sunesis' current expectations. Forward-looking statements involve risks and uncertainties. Sunesis' actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to Sunesis' need for substantial additional funding to complete the development and commercialization of Qinprezo, risks related to whether outstanding warrants will be exercised in the future, risks related to Sunesis' ability to raise the capital that it believes to be accessible and is required to fully finance the development and commercialization of Qinprezo, the risk that raising funds through lending arrangements may restrict our operations or produce other adverse results, the risk that Sunesis' development activities for Qinprezo could be otherwise halted or significantly delayed for various reasons, the risk that Sunesis' clinical studies for Qinprezo may not demonstrate safety or efficacy or lead to regulatory approval, the risk that data to date and trends may not be predictive of future data or results, the risk that Sunesis' nonclinical studies and clinical studies may not satisfy the requirements of the
|SUNESIS PHARMACEUTICALS, INC.|
|CONSOLIDATED BALANCE SHEETS|
|March 31,||December 31,|
|Cash and cash equivalents||$ 50,354||$ 15,121|
|Prepaids and other current assets||1,099||1,199|
|Total current assets||71,755||40,492|
|Property and equipment, net||41||23|
|Deposits and other assets||33||10|
|Total assets||$ 71,829||$ 40,525|
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)|
|Accounts payable||$ 1,011||$ 953|
|Accrued clinical expense||3,637||4,750|
|Other accrued liabilities||2,169||1,645|
|Current portion of deferred revenue||7,956||7,956|
|Current portion of notes payable||9,293||9,018|
|Total current liabilities||37,670||33,972|
|Non-current portion of deferred revenue||1,724||3,712|
|Non-current portion of notes payable||6,671||9,025|
|Stockholders' equity (deficit):|
|Additional paid-in capital||520,022||473,509|
|Accumulated other comprehensive income (loss)||4||(3)|
|Total stockholders' equity (deficit)||25,764||(6,184)|
|Total liabilities and stockholders' equity (deficit)||$ 71,829||$ 40,525|
|Note 1: The consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013.|
|SUNESIS PHARMACEUTICALS, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|AND COMPREHENSIVE LOSS|
|(In thousands, except per share amounts)|
Three months ended
|License and other revenue||$ 1,995||$ 1,989|
|Research and development||7,552||7,377|
|General and administrative||3,417||2,444|
|Total operating expenses||10,969||9,821|
|Loss from operations||(8,974)||(7,832)|
|Other income (expense), net||(5,052)||(2,961)|
|Unrealized gain (loss) on available-for-sale securities||7||(21)|
|Comprehensive loss||$ (14,566)||$ (11,645)|
|Basic and diluted loss per common share:|
|Net loss||$ (14,573)||$ (11,624)|
|Shares used in computing basic and diluted net loss per common share||56,313||51,587|
|Basic and dliuted loss per common share||$ (0.26)||$ (0.23)|
CONTACT: Investor and Media Inquiries:
David Pitts Argot Partners212-600-1902 Eric Bjerkholt Sunesis Pharmaceuticals Inc.650-266-3717