Sunesis Pharmaceuticals Reports Second Quarter 2014 Financial Results and Recent Highlights
VALOR Trial Reaches Prespecified Events for Unblinding
Sunesis to Host Conference Call Today at
"As we near unblinding of our pivotal, Phase 3 VALOR trial in first relapsed or refractory AML, an increasing focus of our resources is the advancement of our QINPREZO™ regulatory, commercial and lifecycle management strategies," said
Mr. Swisher added: "Having now reached the prespecified number of events, we continue to expect unblinding of the VALOR trial in the second half of 2014. Our progress with the QINPREZO program, together with our growing pipeline of novel and differentiated therapeutic programs and a strong balance sheet, position Sunesis to reach our goal of becoming a leading, integrated oncology company."
Second Quarter 2014 and Recent Highlights
VALOR trial reaches prespecified number of events for unblinding. VALOR recently reached the prespecified milestone of 562 events. Sunesis is currently working closely with its VALOR investigators and study sites to finalize and lock the study database. Sunesis continues to expect a top-line readout of VALOR in the second half of 2014.
Announced acceptance of Pediatric Investigation Plan (PIP) by EMA for QINPREZOTM (vosaroxin). In
June 2014, Sunesis announced that the Pediatric Committee of the European Medicines Agency (EMA) issued a positive opinion on the company's Pediatric Investigation Plan (PIP) for QINPREZO. A PIP is part of the EMA approval process and must be accepted prior to submission of a Marketing Authorization Application (MAA) for the drug in the European Union. A PIP describes how a company intends to evaluate the use of a given drug in children. The completion of studies outlined in the PIP is not required prior to any European Unionapproval as a deferral for completion has been received.
Announced presentation of positive updated results from
MD Anderson Cancer Center-sponsored trial at ASCO2014. In June 2014, Sunesis announced the presentation of updated results from an ongoing Phase 1b/2 University of Texas MD Anderson Cancer Center-sponsoredtrial of vosaroxin in combination with decitabine in older patients with previously untreated AML and high-risk myelodysplastic syndrome (MDS). The results were presented at the American Society of Clinical OncologyAnnual Meeting 2014 ( ASCO) in Chicago, Illinois. The combination of vosaroxin and decitabine showed robust clinical benefit and good tolerability in older patients with AML and high-risk MDS. The poster, titled "Phase I/II study of vosaroxin and decitabine in older patients with acute myeloid leukemia (AML) and high risk myelodysplastic syndrome (MDS)," is available on the Sunesis website at www.sunesis.com.
Parvinder S. HyareVice President, Market Access. In July 2014, Sunesis appointed Parvinder S. Hyareto the newly created position of Vice President, Market Access. Mr. Hyare brings over 14 years of experience in managing commercial strategies to provide pricing, reimbursement and access for oncology and specialty products promoted among hospital, group purchasing organization (GPO), commercial, trade and government payers. Prior to joining Sunesis, Mr. Hyare was Executive Director, Managed Markets & Reimbursement at AMAG Pharmaceuticals, Inc.and previously served as National Sales Director for that company. Prior to AMAG, Mr. Hyare was Region Business Director at Johnson & Johnson. He began his career at Merck & Co.as a Sales Representative/Vaccine Specialist.
Cash and investments totaled
$58.5 millionas of June 30, 2014, as compared to $39.3 millionas of December 31, 2013. The increase of $19.2 millionwas primarily due to net proceeds of $45.5 millionfrom equity financing arrangements and the exercise of warrants and stock options, partially offset by $21.6 millionof net cash used in operating activities and $4.6 millionof principal payments against notes payable. As of June 30, 2014, outstanding debt totaled $13.8 million.
Revenue for the three and six months ended
June 30, 2014and 2013 was $2.0 millionand $4.0 million. Revenue in each period was due to deferred revenue recognized related to the royalty agreement with Royalty Pharma.
Research and development expense was
$7.2 millionand $14.8 millionfor the three and six months ended June 30, 2014, as compared to $7.7 millionand $15.1 millionfor the same periods in 2013, primarily relating to the QINPREZO development program in each period. Partially offset by spending on our kinase inhibitor programs, the decreases between the three and six month periods were primarily due to lower clinical trial expenses.
General and administrative expenses for the three and six months ended
June 30, 2014were $6.4 millionand $9.8 million, as compared to $2.9 millionand $5.3 millionfor the same periods in 2013. The increases between the three and six month periods were primarily due to higher personnel and consulting costs related to commercial planning and medical affairs.
Interest expense was
$0.5 millionand $1.0 millionfor the three and six months ended June 30, 2014, as compared to $0.8 millionand $1.6 millionfor the same periods in 2013. The decreases in 2014 were due to the reduced principal balance outstanding on notes payable.
Net other income was
$0.3 millionfor the three months ended June 30, 2014, as compared to $1.2 millionfor the same period in 2013. Net other expense was $4.8 millionfor the six months ended June 30, 2014, as compared to $1.8 millionfor the same period in 2013. The amounts for each period were primarily comprised of non-cash credits or charges for the revaluation of warrants issued in the October 2010underwritten offering.
Cash used in operations was
$21.6 millionfor the six months ended June 30, 2014, as compared to $19.0 millionfor the same period in 2013. Net cash used in 2014 resulted primarily from the net loss of $26.4 millionand changes in operating assets and liabilities of $2.9 million, partially offset by net adjustments for non-cash items of $7.6 million.
Net loss was
$11.8 millionand $26.4 millionfor the three and six months ended June 30, 2014, as compared to $8.2 millionand $19.8 millionfor the same periods 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.,
About QINPREZO™ (vosaroxin)
QINPREZO 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. Preclinical data demonstrate that QINPREZO both intercalates DNA and inhibits topoisomerase II, resulting in replication-dependent, site-selective DNA damage, G2 arrest and apoptosis. Both the
The trademark QINPREZO has been conditionally accepted by 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, QINPREZO and the related 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 and the commercial potential for QINPREZO™ (vosaroxin). Words such as "anticipate," "approximately," "believe," "continue," "could," "estimate," "expect," "position," "potential," 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|
|June 30,||December 31,|
|Cash and cash equivalents||$ 26,761||$ 15,121|
|Prepaids and other current assets||1,133||1,199|
|Total current assets||59,676||40,492|
|Property and equipment, net||35||23|
|Deposits and other assets||2||10|
|Total assets||$ 59,713||$ 40,525|
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)|
|Accounts payable||$ 513||$ 953|
|Accrued clinical expense||3,938||4,750|
|Other accrued liabilities||4,238||1,645|
|Current portion of deferred revenue||7,690||7,956|
|Current portion of notes payable||9,573||9,018|
|Total current liabilities||39,640||33,972|
|Non-current portion of deferred revenue||--||3,712|
|Non-current portion of notes payable||4,234||9,025|
|Stockholders' equity (deficit):|
|Additional paid-in capital||521,889||473,509|
|Accumulated other comprehensive loss||(7)||(3)|
|Total stockholders' equity (deficit)||15,839||(6,184)|
|Total liabilities and stockholders' equity (deficit)||$ 59,713||$ 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
Six months ended
|License and other revenue||$ 1,989||$ 1,989||$ 3,984||$ 3,978|
|Research and development||7,206||7,674||14,758||15,051|
|General and administrative||6,387||2,889||9,804||5,333|
|Total operating expenses||13,593||10,563||24,562||20,384|
|Loss from operations||(11,604)||(8,574)||(20,578)||(16,406)|
|Other income (expense), net||293||1,152||(4,759)||(1,809)|
|Unrealized gain (loss) on available-for-sale securities||(11)||(17)||(4)||(38)|
|Comprehensive loss||$ (11,792)||$ (8,207)||$ (26,358)||$ (19,852)|
|Basic and diluted loss per common share:|
|Basic||$ (11,781)||$ (8,190)||$ (26,354)||$ (19,814)|
|Diluted||$ (12,114)||$ (9,336)||$ (26,354)||$ (19,814)|
|Shares used in computing net loss per common share:|
|Net loss per common share:|
|Basic||$ (0.20)||$ (0.16)||$ (0.45)||$ (0.38)|
|Diluted||$ (0.20)||$ (0.18)||$ (0.45)||$ (0.38)|
CONTACT: Investor and Media Inquiries:
David Pitts Argot Partners212-600-1902 Eric Bjerkholt Sunesis Pharmaceuticals Inc.650-266-3717