Nabriva Reports First Quarter 2016 Financial Results
“We continue enrolling patients in our lefamulin development program for the treatment of patients with moderate to severe Community Acquired Bacterial Pneumonia (CABP),” said Dr.
RECENT CORPORATE HIGHLIGHTS
- We initiated our second global, registrational trial, Lefamulin Evaluation Against Pneumonia (LEAP) 2, in April 2016.
- Agreement was reached with the
US Food and Drug Administration( FDA) on an amendment to our LEAP 1 Special Protocol Assessment in April 2016. Gary Senderwas appointed as Chief Financial Officer on May 2, 2016.
- For the three months ended
March 31, 2016, Nabriva reported a net loss of $13.6 million, or $6.41per share, compared to a net loss of $9.7 million, or $29.97per share for the three months ended March 31, 2015.
- Research and development expenses increased by
$10.2 millionfrom $2.8 millionfor the three months ended March 31, 2015to $13.0 millionfor the three months ended March 31, 2016. The increase was primarily due to higher costs related to our Phase 3 clinical trials for lefamulin.
- General and administrative expenses increased by
$2.2 millionfrom $0.9 millionfor the three months ended March 31, 2015to $3.1 millionfor the three months ended March 31, 2016. This increase was primarily due to an increase in staff costs related to the addition of employees in the United States(including non-cash compensation expense,) as well as an increase in professional service fees and other general operating expenses related to operating as a public company.
- As of
March 31, 2016, Nabriva had $101.5 millionin cash, cash equivalents and investments on the balance sheet compared to $111.4 millionas of December 31, 2015.
As discussed in our 2015 annual report we have significantly expanded our operations in
We are a clinical stage biopharmaceutical company engaged in the research and development of novel anti-infective agents to treat serious infections, with a focus on the pleuromutilin class of antibiotics. We are developing our lead product candidate, lefamulin, to be the first pleuromutilin antibiotic for systemic administration in humans. We are developing both intravenous, or IV, and oral formulations of lefamulin for the treatment of community-acquired bacterial pneumonia, or CABP, and intend to develop lefamulin for additional indications other than pneumonia. We initiated two pivotal, international Phase 3 clinical trials of lefamulin for the treatment of moderate to severe CABP. These are the first clinical trials we have conducted with lefamulin for the treatment of CABP. We initiated the first of these trials in
We expect to continue to incur significant expenses and increasing operating losses for at least the next several years. We expect our expenses to increase substantially in connection with our ongoing activities, particularly as we continue the development of and potentially seek marketing approval for lefamulin and, possibly, other product candidates and continue our research activities. Our expenses will increase if we suffer any delays in our Phase 3 clinical program for lefamulin for CABP, including delays in enrollment of patients. If we obtain marketing approval for lefamulin or any other product candidate that we develop, we expect to incur significant commercialization expenses related to product sales, marketing, distribution and manufacturing. Furthermore, we expect to incur additional costs associated with operating as a public company.
Based on our current plans, we do not expect to generate significant revenue unless and until we obtain marketing approval for, and commercialize, lefamulin. We do not expect to obtain marketing approval before 2018, if at all. Accordingly, we will need to obtain substantial additional funding in connection with our continuing operations. Adequate additional financing may not be available to us on acceptable terms, or at all. If we are unable to raise capital when needed or on attractive terms, we could be forced to delay, reduce or eliminate our research and development programs or any future commercialization effort.
Other income increased by $0.8 million from $0.6 million for the three months ended
Research and Development Expenses
Research and development expenses increased by
General and Administrative Expenses
General and administrative expenses increased by
Other Gains, Net
Other net gains increased by
Financial Income and Expenses
Net Financial result changed by
During the three months ended
Other financial expenses decreased from approximately
Cash flow utilized by operating activities increased by
Cash flow from investing activities changed by
Cash flow generated from financing activities decreased by
|Consolidated Statement of Comprehensive Income (Loss)|
|Three Months Ended
|(in thousands, except share and per share data)||2015||2016|
|Research and development expenses||(2,788||)||(13,017||)|
|General and administrative expenses||(904||)||(3,085||)|
|Other gains (losses), net||1||997|
|Loss before taxes||(9,719||)||(13,598||)|
|Taxes on income||(12||)||17|
|Loss for the period||(9,731||)||(13,581||)|
|Other comprehensive income for the year||4,484||41|
|Total comprehensive loss for the year||$||(5,247||)||$||(13,540||)|
|Three Months Ended
|Loss per share||2015||2016|
|Basic ($ per share)||($||29.97||)||($||6.41||)|
|Diluted ($ per share)||($||29.97||)||($||6.41||)|
|Consolidated Statement of Financial Position|
|(in thousands)||December 31,
|Property, plant and equipment||$||417||$||412|
|Deferred tax assets||616||634|
|Marketable securities and term deposits||74,994||72,080|
|Cash and cash equivalents||36,446||29,453|
|Equity and liabilities|
|Capital and reserves|
|Investment from silent partnership||-||-|
|Other financial liabilities||-||-|
|Deferred tax liability||-||-|
|Other non-current liabilities||84||91|
|Other financial liabilities||-||-|
|Current income tax liabilities||170||169|
|Total equity and liabilities||$||117,711||$||109,494|
|Selected Cash Flows Data|
|Three Months Ended
|Cash flow utilized by operating activities||$||(2,482||)||$||(9,955||)|
|Cash flow utilized by investing activities||(40||)||2,933|
|Cash flow generated from financing activities||4,006||29|
|Net cash flow||$||1,484||$||(6,993||)|
|Cash and cash equivalents at beginning of period||$||2,150||$||36,446|
|Effects of exchange rate changes on the balance of cash & cash
equivalents held in foreign currencies
|Cash and cash equivalents at end of period||$||3,374||$||29,453|
Select Notes to the Statements Presented
1. Basis of accounting
The consolidated financial statements of the Company presented in this press release have been prepared on a historical cost basis in accordance with the International Financial Reporting Standards, or IFRS, as issued by the
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It requires management to exercise its judgment in the process of applying the Company’s accounting policies.
2. Losses per share calculation
Basic losses per share have been calculated by dividing the loss attributable to shareholders for the period by the weighted average number of shares outstanding during the period, excluding shares held by the Company as treasury shares, which amounted to shares for the three months ended
In both periods presented diluted losses per share equal basic loss per share. The effect of potentially dilutive shares has been excluded from the diluted losses per share calculation because it would result in a decrease in the loss per share for the period and is therefore not to be treated as dilutive.
3. Share capital
The number of common shares outstanding as of
4. Change in functional currency
The Company has significantly expanded its presence and operations in
Nabriva owns exclusive, worldwide rights to lefamulin, which is protected by composition of matter patents issued in
Forward Looking Statements
Any statements in this press release about future expectations, plans and prospects for Nabriva, including but not limited to statements about the development of Nabriva’s product candidates, such as plans for the design, conduct and timelines of Phase 3 clinical trials of lefamulin for CABP, the clinical utility of lefamulin for CABP and Nabriva’s plans for filing of regulatory approvals and efforts to bring lefamulin to market, the development of lefamulin for additional indications, the development of additional formulations of lefamulin, plans to pursue research and development of other product candidates and other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “likely,” “will,” “would,” “could,” “should,” “continue,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties inherent in the initiation and conduct of clinical trials, availability and timing of data from clinical trials, whether results of early clinical trials or trials in different disease indications will be indicative of the results of ongoing or future trials, uncertainties associated with regulatory review of clinical trials and applications for marketing approvals, the availability or commercial potential of product candidates including lefamulin for use as a first-line empiric monotherapy for the treatment of moderate to severe CABP, the sufficiency of cash resources and need for additional financing and such other important factors as are set forth under the caption "Risk Factors" in Nabriva’s annual report on Form 20-F as filed with the
Risks Associated with our Business
Our business is subject to a number of risks of which you should be aware. These risks are discussed more fully in the “Risk Factors” section of Nabriva’s annual report on Form 20-F as filed with the
- We depend heavily on the success of lefamulin. Our ability to generate product revenues, which may not occur for several years, if ever, will depend heavily on our obtaining marketing approval for and commercializing lefamulin.
- Our Phase 3 clinical trials of lefamulin for CABP, and other clinical trials we conduct, may not be successful. We have not yet completed any clinical trials of lefamulin for CABP. Our completed Phase 2 clinical trial evaluated lefamulin for ABSSSI. The results of our completed clinical trials may not predict success in our Phase 3 clinical trials of lefamulin for CABP.
- We have a limited operating history. We have not yet demonstrated our ability to successfully complete development of any product candidates, obtain marketing approvals, manufacture a commercial scale product, or arrange for a third party to do so on our behalf, or conduct sales and marketing activities necessary for successful product commercialization.
- If we are unable to obtain required marketing approvals for, commercialize, obtain and maintain patent protection for or gain market acceptance by physicians, patients and third-party payors of lefamulin or any of our other product candidates, or experience significant delays in doing so, our business will be materially harmed and our ability to generate revenue will be materially impaired.
- We have incurred significant operating losses since inception and will need substantial additional funding. If we are unable to raise capital when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts. As of
March 31, 2016, we had accumulated losses of $150.4 million. We expect to incur significant expenses and increasing operating losses for at least the next several years.
- If we are classified as a passive foreign investment company in any taxable year, it may result in adverse U.S. federal income tax consequences to U.S. holders of the ADSs.
- As a foreign private issuer, we are exempt from a number of rules under the U.S. securities laws and
NASDAQ Stock Marketcorporate governance rules and are permitted to file less information with the Securities and Exchange Commissionthan U.S. companies. This may limit the information available to holders of the ADSs.
Will Sargent Nabriva Therapeutics AGWilliam.Sargent@nabriva.com