Sunesis Pharmaceuticals Reports Second Quarter 2020 Financial Results and Recent Highlights
“We are committing our resources to the development of our first-in-class PDK-1 inhibitor, SNS-510, as we evaluate the path forward for vecabrutinib. In addition, we initiated a review of strategic alternatives to maximize shareholder value that can include in-licensing, partnering, and mergers and acquisitions,” said
Bolstered Balance Sheet with Completion of Public Offering and Retiring Debt. In
Announced Reduction in Workforce to Streamline Resources. In July, Sunesis announced a reduction in workforce of approximately 30% to right size the organization to achieve its objectives and preserve cash resources.
Announced Review of Strategic Alternatives. In July, the Company announced plans to review strategic alternatives to maximize shareholder value that can include asset in-licensing, partnering, and mergers and acquisitions. There can be no assurance that the strategic review will result in any transaction or other outcome. The Company does not currently intend to publicly discuss or disclose further developments of the strategic review unless and until its Board of Directors has approved a transaction or otherwise determined that further disclosure is appropriate.
Continued program of IND-enabling Activities for its PDK-1 Inhibitor SNS-510. In
This follows the Company’s decision to not advance its non-covalent BTK inhibitor vecabrutinib into the originally planned Phase 2 portion of the Phase 1b/2 trial in adults with BTK inhibitor resistant relapsed/refractory chronic lymphocytic leukemia (CLL) and other B-cell malignancies. Vecabrutinib continues to exhibit an excellent safety profile and showed clinical activity, although this was insufficient to support advancing to the Phase 2 in BTK inhibitor resistant disease. One CLL patient experienced a partial remission and several patients had stable disease for over 6 months.
- Cash and cash equivalents and restricted cash totaled
$23.2 millionas of June 30, 2020, as compared to $34.6 millionas of December 31, 2019. The decrease of $11.4 millionwas due to cash used in operating activities, mainly resulting from our net loss of $12.2 millionfor the six months ended June 30, 2020, partially offset by adjustments for non-cash items of $0.7 million. In July 2020, the Company raised approximately $12.6 million in net proceeds from a common stock public offering.
- Revenue was nil and
$0.1 millionfor the three and six months ended June 30, 2020, respectively, and nil for the same periods in 2019. The revenue during the six months ended June 30, 2020was primarily due to revenue recognized from the upfront payment received under the license agreement with Denovo.
- Research and development expense was
$4.3 millionand $8.0 millionfor the three and six months ended June 30, 2020, respectively, compared to $3.7 millionand $6.9 millionfor the same periods in 2019. The increase of $0.6 millionbetween the comparable three months periods was primarily due to a $1.1 millionincrease in professional service expenses related to the progress in the Phase 1b portion of the clinical trial for vecabrutinib. The increase is partially offset by a $0.3 milliondecrease in salary and personnel expenses due to lower headcount and a $0.2 milliondecrease in clinical research organizations related expenses. The $1.1 millionincrease in the comparable six months period was primarily due to a $1.7 millionincrease in professional services and a $0.1 millionincrease in clinical expenses related to the progress in the Phase 1b portion of our ongoing clinical trial for vecabrutinib. The increase is partially offset by a $0.7 milliondecrease in salary and personnel expenses due to lower headcount.
- General and administrative expense was
$2.1 millionand $4.3 millionfor the three and six months ended June 30, 2020, respectively, compared to $2.5 millionand $5.0 millionfor the same periods in 2019. The decreases between the comparable periods was primarily due to decrease in professional service expenses due to lower patent expenses and decrease in salary and personnel expenses due to lower headcount and less business-related travel.
- Interest expense was
$0.1 millionfor each of the three and six months ended June 30, 2020, compared to $0.1 millionand $0.4 millionfor the same periods in 2019, respectively. The decrease in interest expenses in the comparable six months period resulted from lower interest paid due to the lower interest rate on the lower principal amount under the SVB Loan Agreement as compared to the prior loan agreement with Western Alliance Bankand Solar Capital Ltd. in 2019.
- Net cash used in operating activities was
$11.5 millionfor the six months ended June 30, 2020, as compared to $13.0 millionfor the same period in 2019. Net cash used in the six months ended June 30, 2020, resulted primarily from the net loss of $12.2 million, partially offset by adjustments for non-cash items of $0.7 million. Net cash used in the six months ended June 30, 2019, resulted primarily from the net loss of $12.1 million, partially offset by adjustments for non-cash items of $0.9 millionand changes in operating assets and liabilities of $1.8 million.
Conference Call Information
Sunesis will host a conference call today at 4:30 p.m. Eastern Time. The call can be accessed by dialing (844) 296-7720 (
SNS-510 is a PDK1 inhibitor licensed from
About Sunesis Pharmaceuticals
Sunesis is a biopharmaceutical company developing novel targeted inhibitors for the treatment of hematologic and solid cancers. Sunesis has built an experienced drug development organization committed to improving the lives of people with cancer. The Company is focused on advancing its novel kinase inhibitor pipeline, including first-in-class PDK1 inhibitor SNS-510 and its oral non-covalent BTK inhibitor vecabrutinib. SNS-510 is in IND-enabling studies and vecabrutinib is completing a Phase 1b trial in patients with advanced B cell malignancies.
For additional information on Sunesis, please visit www.sunesis.com.
SUNESIS and the logos are trademarks of Sunesis Pharmaceuticals, Inc.
This press release contains forward-looking statements, including statements related to Sunesis’ continued development and potential of its kinase inhibitor pipeline, including the timing of the additional preclinical findings related to SNS-510; the timing of the potential IND filing for SNS-510; completion of the Phase 1b trial of vecabrutinib and the therapeutic potential of vecabrutinib; and the sufficiency of Sunesis’ cash resources and financial position. Words such as “expect,” “will,” “look forward,” 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. These and other risk factors are discussed under "Risk Factors" in Sunesis' Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and Sunesis' other filings with the Securities and Exchange Commission. Sunesis expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Sunesis' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|AND COMPREHENSIVE LOSS|
|(In thousands, except per share amounts)|
|Three months ended
||Six months ended
|License and other revenue||$||-||$||-||$||120||$||-|
|Research and development||4,281||3,683||7,971||6,931|
|General and administrative||2,064||2,523||4,292||4,962|
|Total operating expenses||6,345||6,206||12,263||11,893|
|Loss from operations||(6,345||)||(6,206||)||(12,143||)||(11,893||)|
|Other income, net||20||76||113||164|
|Unrealized loss on available-for-sale securities||-||-||(1||)||-|
|Basic and diluted loss per common share:|
|Shares used in computing basic and diluted loss per common share||111,416||72,190||111,405||65,702|
|Basic and diluted loss per common share||$||(0.06||)||$||(0.09||)||$||(0.11||)||$||(0.18||)|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|Cash and cash equivalents||$||17,653||$||12,761|
|Prepaids and other current assets||1,712||1,697|
|Total current assets||24,865||36,322|
|Property and equipment, net||-||3|
|Operating lease right-of-use asset||545||817|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued clinical expense||402||521|
|Other accrued liabilities||1,836||1,109|
|Operating lease liability - current||545||545|
|Total current liabilities||9,400||9,416|
|Operating lease liability - long term||-||272|
|Convertible preferred stock||11,769||11,769|
|Additional paid-in capital||699,291||698,562|
|Accumulated other comprehensive income||-||1|
|Total stockholders’ equity||16,106||27,543|
|Total liabilities and stockholders’ equity||$||25,506||$||37,240|
|Note 1: The consolidated balance sheet as of
|Investor and Media Inquiries:
Source: Sunesis Pharmaceuticals, Inc.