Sunesis Pharmaceuticals Reports Third Quarter 2020 Financial Results and Recent Highlights
“Our number one priority is our review of strategic alternatives while continuing to build value in our internal and partnered programs” said
Presented SNS-510 Preclinical Data from Ongoing Program at the 32nd EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapies. In
Bolstered Balance Sheet with Completion of Public Offering and Retiring Debt. In
Announced Review of Strategic Alternatives. In
Announced Reduction in Workforce to Streamline Resources. In
- Cash and cash equivalents totaled
$26.0 millionas of September 30, 2020, as compared to cash and cash equivalents and restricted cash totaled $34.6 millionas of December 31, 2019. The decrease of $8.6 millionwas due to cash used in operating activities, mainly resulting from our net loss of $16.8 millionfor the nine months ended September 30, 2020, the $5.5 millionprincipal payment of the SVB Loan Agreement, offset by the $12.6 millionnet proceeds from issuance of common stock and adjustments for non-cash items of $1.1 million.
- Total revenue was nil and
$0.1 millionfor the three and nine months ended September 30, 2020, respectively, and nil for the comparable periods in 2019. The revenue during the nine months ended September 30, 2020was primarily due to revenue recognized from the upfront payment received under the license agreement with Denovo.
- Research and development expense was
$2.2 millionand $10.1 millionfor the three and nine months ended September 30, 2020, respectively, compared to $3.5 millionand $10.5 millionfor the same periods in 2019. The decrease of $1.3 millionbetween the comparable three months periods was primarily due to a $0.7 milliondecrease in clinical expenses and a $0.4 milliondecrease in professional service expenses due to the decision not to advance our clinical trial for vecabrutinib into Phase 2. The decrease is further due to a $0.2 milliondecrease in salary and personnel expenses due to lower headcount. The $0.4 milliondecrease in the comparable nine months period was primarily due to a $0.9 milliondecrease in salary and personnel expenses due to lower headcount and a $0.6 milliondecrease in clinical research organization (“CRO”) related expenses, partially offset by a $1.3 millionincrease in professional services mainly due to progress in the SNS-510 studies.
- General and administrative expense was
$2.3 millionand $6.6 millionfor the three and nine months ended September 30, 2020, respectively, compared to $2.5 millionand $7.5 millionfor the same periods in 2019. The decrease of $0.2 millionbetween the comparable three months periods was primarily due to a $0.4 milliondecrease in salary and personnel expenses due to lower headcount and less business-related travel, offset by a $0.1 millionincrease in professional service expenses and a $0.1 millionincrease in Delawarefranchise tax due to reverse split. The $0.9 milliondecrease in the comparable nine months periods was primarily due to a $0.6 milliondecrease in salary and personnel expenses due to lower headcount and less business-related travels and a $0.3 milliondecrease in professional service expenses due to lower patent expenses.
- Interest expense was
$0.2 millionand $0.3 millionfor the three and nine months ended September 30, 2020, compared to $0.1 millionand $0.4 millionfor the same periods in 2019, respectively. The increase in the interest expenses in the comparable three months periods was mainly due to the final payment related to the repayment of the outstanding debt under the SVB Loan Agreement in July 2020. The decrease in the comparable nine months periods was mainly due to lower interest paid due to the lower interest rate on the lower principal amount under the SVB Loan Agreement as compared to our prior loan agreement with Western Alliance Bankand Solar Capital Ltd. in 2019.
- Net cash used in operating activities was
$15.8 millionfor the nine months ended September 30, 2020, as compared to $18.4 millionfor the same period in 2019. Net cash used in operating activities in the nine months ended September 30, 2020, resulted primarily from the net loss of $16.8 million, partially offset by adjustments for non-cash items of $1.1 million. Net cash used in operating activities in the nine months ended September 30, 2019, resulted primarily from the net loss of $18.0 millionand changes in operating assets and liabilities of $1.8 million, offset by adjustments for non-cash items of $1.4 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 (
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. SNS-510 is in IND-enabling studies.
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 additional IND enabling studies related to SNS-510; Sunesis' ability to maximize stockholder value through Sunesis' strategic review process; 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 September 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
||Nine months ended
|License and other revenue||$||-||$||-||$||120||$||-|
|Research and development||2,157||3,534||10,128||10,465|
|General and administrative||2,315||2,507||6,607||7,469|
|Total operating expenses||4,472||6,041||16,735||17,934|
|Loss from operations||(4,472||)||(6,041||)||(16,615||)||(17,934||)|
|Other income, net||1||170||114||334|
|Unrealized loss on available-for-sale securities||-||-||(1||)||-|
|Basic and diluted loss per common share:|
|Shares used in computing basic and diluted loss per common share(1)||15,929||10,507||12,748||7,897|
|Basic and diluted loss per common share(1)||$||(0.29||)||$||(0.57||)||$||(1.32||)||$||(2.28||)|
|Note 1: Share and per-share data in the condensed consolidated statement of operations and comprehensive loss have been adjusted to give retroactive effect to the Reverse Split for all periods presented.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|Cash and cash equivalents||$||26,048||$||12,761|
|Prepaids and other current assets||1,576||1,697|
|Total current assets||27,624||36,322|
|Property and equipment, net||-||3|
|Operating lease right-of-use asset||409||817|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued clinical expense||380||521|
|Other accrued liabilities||1,727||1,109|
|Operating lease liability - current||409||545|
|Total current liabilities||3,567||9,416|
|Operating lease liability - long term||-||272|
|Convertible preferred stock||5,545||11,769|
|Additional paid-in capital||718,522||698,562|
|Accumulated other comprehensive income||-||1|
|Total stockholders’ equity||24,466||27,543|
|Total liabilities and stockholders’ equity||$||28,033||$||37,240|
|Note 2: The consolidated balance sheet as of
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Source: Sunesis Pharmaceuticals, Inc.