Zalicus Reports Financial Results for the Third Quarter 2013
CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Zalicus Inc. (Nasdaq Capital Market: ZLCS), a biopharmaceutical company that discovers and develops novel treatments for patients suffering from pain, today reported financial results for the third quarter ended September 30, 2013.
During the quarter we completed dosing in two Phase 2 clinical trials of Z160, a first-in-class, oral, state dependent, selective N-type calcium channel modulator for the potential treatment of chronic neuropathic pain. Z160 also received designation as an orphan drug from the FDA for the management of postherpetic neuralgia. In addition, we initiated and completed a Phase 1b clinical study of Z944, a novel, oral, T-type calcium channel modulator, in an experimental model of pain, commented Mark H.N. Corrigan, MD, President and CEO of Zalicus (ZLCS). We remain on track to report top-line data for the two Phase 2 clinical trials of Z160, including lumbosacral radiculopathy and postherpetic neuralgia, in the fourth quarter of 2013. In addition, based on the positive results of the Z944 Phase 1b Laser-Evoked-Potentials (LEP) study, we are planning to initiate a Phase 2 clinical study in an appropriate pain indication with a modified release formulation of Z944 next year.
Third Quarter 2013 and Recent Accomplishments:
Z944. Initiated and completed a Phase 1b
clinical study of Z944, a novel, oral, T-type calcium channel
modulator. The Phase 1b study is an experimental clinical model
utilizing Laser-Evoked-Potentials (LEP) to provide both subjective and
objective assessments of the activity of Z944 in induced neuropathic
and inflammatory pain states. Results from the LEP study will further
inform Zalicuss development plans for Z944 in a variety of potential
pain indications. Zalicus is planning to advance a modified-release
formulation of Z944 into Phase 2 clinical development for an
appropriate pain indication in 2014.
In addition, a second United States patent (U.S. Patent number 8,569,344) for Z944 covering methods of treating pain was issued on October 29, 2013, providing additional patent protection for Z944 in the United States until at least 2029.
Z160. Received Orphan Drug designation
from the U.S. Food and Drug Administration (FDA) for the management of
postherpetic neuralgia (PHN). Orphan drug designation is granted by
the FDA Office of Orphan Drug Products to novel drugs that treat a
rare disease or condition affecting fewer than 200,000 patients in the
U.S. The designation provides the drug developer with a seven-year
period of marketing exclusivity in the United States. PHN is a painful
neuropathic condition resulting from an outbreak of the herpes zoster
virus, otherwise known as shingles. The FDAs designation of Z160 as
having orphan drug status is an important milestone for Zalicus as we
continue the clinical development work required for potential FDA
approval of Z160.
Completed patient dosing in two Phase 2 clinical studies of Z160 for chronic neuropathic pain indications including postherpetic neuralgia and lumbosacral radiculopathy. Top-line results of both studies are expected in the fourth quarter of 2013.
- ZLCS Common Stock. Effected a 1-for-6 reverse stock split of Zalicus common stock, effective October 3, 2013. As a result of the reverse stock split, effective October 14, 2013, Zalicus regained compliance with the $1.00 per share minimum bid price requirement for continued listing on The Nasdaq Capital Market. Zalicus currently has approximately 26.1 million shares outstanding.
Third Quarter Financial Results (Unaudited):
As of September 30, 2013, Zalicus had cash, cash equivalents, restricted cash and short-term investments of $20.0 million compared to $20.8 million as of June 30, 2013.
For the three months ended September 30, 2013, revenue was $3.4 million compared to $3.5 million for the quarter ended September 30, 2012. Zalicus recognized $1.5 million in royalty revenue from Mallinckrodt plc based on Exalgo® net sales for the quarter ended September 30, 2013 and Zalicus has recognized a total of $14.0 million in royalty revenue from Exalgo through September 30, 2013 since its commercial launch in April 2010.
For the quarter ended September 30, 2013, research and development expense was $9.3 million compared to $12.1 million for the quarter ended September 30, 2012. Research and Development expense in the quarter ended September 30, 2013 included approximately $5.5 million devoted to the execution of two Phase 2 clinical studies for Z160 and approximately $0.5 million in development expenses related to Z944.
For the quarter ended September 30, 2013, net loss was $10.5 million, or ($0.46) per share, compared to a net loss of $12.2 million, or ($0.59) per share, in the quarter ended September 30, 2012. The net loss per share amounts for each quarter have been adjusted for the 1-for-6 reverse stock split effected on October 3, 2013. In addition, the net loss amounts include $2.2 million and $1.0 million of non-cash Exalgo intangible amortization expense in the quarters ended September 30, 2013 and September 30, 2012, respectively.
General and administrative expenses were $2.1 million in the quarter ended September 30, 2013 compared to $2.2 million in the quarter ended September 30, 2012.
Zalicus Inc. (Nasdaq Global Market: ZLCS) is a biopharmaceutical company that discovers and develops novel treatments for patients suffering from pain. Zalicus has a portfolio of proprietary clinical-stage product candidates targeting pain such as Z160 and Z944 and has entered into multiple revenue-generating collaborations with large pharmaceutical companies relating to other products, product candidates and drug discovery technologies. Zalicus applies its expertise in the discovery and development of selective ion channel modulators and its combination high throughput screening capabilities to discover innovative therapeutics for itself and its collaborators in the areas of pain, inflammation, oncology and infectious disease. To learn more about Zalicus, please visit www.zalicus.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Zalicus, its product candidates, including Z160 and Z944, their potential, and its plans for clinical development for Z160 and Z944, the Zalicus selective ion channel modulation technology, and related preclinical product candidates and intellectual property, Zalicuss combination drug discovery technology, cHTS, and its financial condition, results of operations, and other business plans. These forward-looking statements about future expectations, plans, objectives and prospects of Zalicus and its product candidates may be identified by words like "believe," "expect," "may," "will," "should," "seek," plan, project or could and similar expressions and involve significant risks, uncertainties and assumptions, including risks related to the formulation and clinical development of its product candidates Z160 and Z944, the unproven nature of the Zalicus ion channel drug discovery technology, risks related to the sale and marketing of Exalgo by Mallinckrodt, Zalicuss ability to obtain additional financing or funding for its research and development, and those other risks that can be found in the "Risk Factors" section of Zalicus' annual report on Form 10-K on file with the Securities and Exchange Commission and the other reports that Zalicus periodically files with the Securities and Exchange Commission. Actual results may differ materially from those Zalicus contemplated by these forward-looking statements. These forward-looking statements reflect managements current views and Zalicus does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
(c) 2013 Zalicus Inc. All rights reserved.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
|Three months ended September 30,||Nine months ended September 30,|
|cHTS services and other collaborations||1,890||2,132||6,310||5,007|
|Research and development||9,343||12,050||26,267||32,493|
|General and administrative||2,077||2,201||6,178||7,172|
|Amortization of intangible||2,180||974||6,541||2,920|
|Total operating expenses||13,600||15,208||38,986||43,697|
|Loss from operations||(10,200||)||(11,690||)||(28,021||)||(34,935||)|
|Net loss before provision for income taxes||(10,529||)||(12,174||)||(29,138||)||(36,481||)|
|Income tax benefit||441|
|Net loss per sharebasic and diluted||$||(0.46||)||$||(0.59||)||$||(1.33||)||$||(1.90||)|
|Weighted average number of common shares used in net loss per share calculationbasic and diluted||22,931,109||20,760,483||21,952,913||19,011,523|
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
|Cash and cash equivalents||
|Prepaid expenses and other current assets||667||684|
|Total current assets||20,853||38,369|
|Property and equipment, net||2,690||3,535|
|Intangible asset, net||11,112||17,654|
|Restricted cash and other assets||1,802||1,817|
|Liabilities and stockholders equity|
|Accrued expenses and other current liabilities||5,199||4,841|
|Current portion of term loan payable||6,731||6,327|
|Current portion of lease incentive obligation||284||284|
|Total current liabilities||16,255||19,631|
|Term loan payable, net of current portion||3,695||8,772|
|Deferred revenue, net of current portion||600|
|Deferred rent, net of current portion||346||457|
|Lease incentive obligation, net of current portion||662||875|
|Other long-term liabilities||14|
|Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding|
|Common stock, $0.001 par value; 200,000 shares authorized; 24,424 and 21,170 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively||24||21|
|Additional paid-in capital||385,636||372,018|
|Accumulated other comprehensive income||10|
|Total liabilities and stockholders equity||$||36,457||$||61,375|
Justin Renz, 617-301-7575
Gina Nugent, 617-460-3579
Source: Zalicus Inc.Copyright Business Wire 2013