Sun BioPharma, Inc. (Nasdaq: SNBP), a clinical stage
biopharmaceutical company developing disruptive therapeutics for
the treatment of patients with pancreatic cancer, today provides a
business update and reports financial results for the quarter ended
September 30, 2020. Management is hosting an earnings call today at
4:30 p.m. ET.
The third quarter of 2020 was marked by meaningful corporate,
financial and clinical progress.
Highlights
- New CEO appointed on July 15, 2020
- Fast Track designation received for SBP-101
- Uplisted to Nasdaq Capital Market
- Closed $10.5 Million Public Offering
“During the third quarter we strengthened our leadership team,
bolstered the balance sheet and broadened our potential investor
audience by uplisting to Nasdaq,” said Jennifer K. Simpson, PhD,
MSN, CRNP President & Chief Executive Officer of Sun BioPharma.
“These Q3 accomplishments lay the foundation to execute on
near-term milestones. Those upcoming milestones include completing
SBP-101’s enrollment in the current Phase 1b trial in Q4 2020,
reporting data from our Phase 1 trial in 1H 2021, initiating a
randomized Phase 2 study in 1H 2021 while evaluating additional
opportunities for SBP-101. Looking ahead, we’re focused on rapidly
advancing SBP-101’s clinical development to create significant
shareholder value.”
Based on interim data from our Phase I trial, SBP-101
demonstrated a 54% objective response rate in combination with
gemcitabine & abraxane (G&A); more than double historical
standard of care for metastatic pancreatic cancer with G&A.
We believe SBP-101 has the potential to expand into other
cancers with known elevated levels of polyamine metabolism.
Upcoming Milestones
- Completion of enrollment in the expansion cohort targeting
(Q4'20)
- Data from phase 1 trial (1H'21)
- Conference presentations (1H'21 or 2H'21)
- Initiation of randomized phase 2 study (1H'21)
Third Quarter ended September 30, 2020 Financial
Results
General and administrative expenses increased to $1.2 million in
the third quarter of 2020, up from $0.6 million in the third
quarter of 2019. The change in the third quarter is due primarily
to increased employee compensation expense.
Research and development expenses increased to $0.8 million in
the third quarter of 2020, up from $0.7 million in the third
quarter of 2019. The change in the third quarter is due to
increased spending on the company’s clinical study.
Operating expenses in the third quarter of 2020 were partially
offset by a foreign currency exchange gain on the intercompany
receivable balance; for the same quarter in 2019 other expense, net
was primarily a foreign currency exchange loss.
Net loss in the third quarter of 2020 was $1.7 million, or $0.21
per diluted share, compared to a net loss of $1.4 million, or $0.23
per diluted share, in the third quarter of 2019.
Total cash was $10.9 million as of September 30, 2020. Total
current assets were $11.4 million and current liabilities were $1.9
million as of the same date.
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes
before the beginning of the call.
Date: November 12, 2020Time: 4:30 PM Eastern TimeToll Free:
877-407-9205International: 201-689-8054
A replay of the call will be available from November 13, 2020
through November 26, 2020
Toll Free: 877-481-4010International: 919-882-2331Replay
Passcode: 38324
The call will also be available over the Internet and accessible
at: https://www.webcaster4.com/Webcast/Page/2556/38324
About SBP-101 SBP-101 is a proprietary
polyamine analogue designed to induce polyamine metabolic
inhibition (PMI) by exploiting an observed high affinity of the
compound for the exocrine pancreas and pancreatic ductal
adenocarcinoma. The molecule has shown signals of tumor growth
inhibition in clinical studies of US and Australian metastatic
pancreatic cancer patients, suggesting complementary activity with
an existing FDA-approved chemotherapy regimen. In clinical studies
to date, SBP-101 has not shown exacerbation of the typical
chemotherapy-related adverse events of bone marrow suppression and
peripheral neuropathy. The safety data and PMI profile observed in
Sun BioPharma’s current clinical trial provides support for
continued evaluation of the compound in a randomized clinical
trial. For more information, please
visit https://clinicaltrials.gov/ct2/show/NCT03412799.
About Sun BioPharma
Sun BioPharma Inc. is a clinical-stage biopharmaceutical company
developing disruptive therapeutics for patients with urgent unmet
medical needs. The company’s initial product candidate, SBP-101, is
for the treatment of patients with metastatic pancreatic ductal
adenocarcinoma, the most common type of pancreatic cancer. Sun
BioPharma Inc. is dedicated to treating patients with pancreatic
cancer and exploring SBP-101’s potential for efficacy in
combination with other agents and in treating other types of
cancer. SBP-101 was invented by Raymond J. Bergeron, PhD, a
Distinguished Professor Emeritus at the University of Florida. Sun
BioPharma has scientific collaborations with pancreatic disease
experts at Cedars Sinai Medical Center in Los Angeles, the
University of Rochester in New York, Scripps MD Anderson Cancer
Center in San Diego, California, the University of Florida, the
Austin Health Cancer Trials Centre in Melbourne, Australia, the
Ashford Cancer Centre in Adelaide, Australia, the Blacktown Cancer
and Haematology Centre in Sydney, Australia and the John Flynn
Private Hospital in Tugun, Queensland, Australia. The company’s
independent Data Safety Monitoring Board (DSMB) is Chaired by James
Abbruzzese, MD, Professor of Medicine, and Chief, Division of
Medical Oncology at Duke University School of Medicine. Professor
David Goldstein, FRACP, Senior Staff Specialist at the Prince Henry
& Prince of Wales Hospital / Cancer Care Centre in Sydney,
Australia is Co-Chair of the DSMB. Further information can be found
at: www.sunbiopharma.com. Sun BioPharma’s
common stock is listed on The Nasdaq Stock Market LLC under the
symbol SNBP.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains “forward-looking statements,”
including within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by
words such as: “believes,” “dedicated,” “expects,” “intends,”
“may,” “milestone,” or “plans.” Examples of forward-looking
statements include, among others, statements we make regarding,
potential effects of FDA Fast Track designation, future
determinations of the characteristics of SBP-101 and its
effectiveness, uses of proceeds from recent financings.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations, and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially and adversely from the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following: (i) our ability to obtain
additional funding to complete Phase 1 clinical trial; (ii)
progress and success of our Phase 1 clinical trial; (iii) the
impact of the current COVID-19 pandemic on our ability to complete
enrollment in our current clinical trial; (iv) our ability to
demonstrate the safety and effectiveness of our SBP-101 product
candidate (v) our ability to obtain regulatory approvals for our
SBP-101 product candidate in the United States, the European Union
or other international markets; (vi) the market acceptance and
level of future sales of our SBP-101 product candidate; (vii) the
cost and delays in product development that may result from changes
in regulatory oversight applicable to our SBP-101 product
candidate; (viii) the rate of progress in establishing
reimbursement arrangements with third-party payors; (ix) the effect
of competing technological and market developments; (x) the costs
involved in filing and prosecuting patent applications and
enforcing or defending patent claims; and (xi) such other factors
as discussed in Part I, Item 1A under the caption “Risk Factors” in
our most recent Annual Report on Form 10-K, any additional risks
presented in our Quarterly Reports on Form 10-Q and our Current
Reports on Form 8-K. Any forward-looking statement made by us in
this press release is based on information currently available to
us and speaks only as of the date on which it is made. We undertake
no obligation to publicly update any forward-looking statement or
reasons why actual results would differ from those anticipated in
any such forward-looking statement, whether written or oral,
whether as a result of new information, future developments or
otherwise.
Contact Information:
Investors:James CarbonaraHayden IR(646)
755-7412james@haydenir.com
Media:Tammy GroeneSun BioPharma, Inc.(952)
479-1196IR@sunbiopharma.com
Sun BioPharma,
IncConsolidated Statements of Operations and
Comprehensive Loss (unaudited)(In thousands, except share
and per share amounts)
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Three months ended
September 30, |
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Nine months ended
September 30, |
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2020 |
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2019 |
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Percent Change |
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2020 |
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2019 |
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Percent Change |
|
Operating
expenses: |
|
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|
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General and administrative |
|
$ |
1,223 |
|
|
$ |
622 |
|
|
96.6 |
% |
|
$ |
2,348 |
|
|
$ |
1,505 |
|
|
56.0 |
% |
|
Research and development |
|
|
773 |
|
|
|
720 |
|
|
7.4 |
% |
|
|
1,805 |
|
|
|
1,578 |
|
|
14.4 |
% |
|
Operating loss |
|
|
(1,996 |
) |
|
|
(1,342 |
) |
|
48.7 |
% |
|
|
(4,153 |
) |
|
|
(3,083 |
) |
|
34.7 |
% |
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Other income
(expense): |
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Interest expense |
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(3 |
) |
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(3 |
) |
|
0.0 |
% |
|
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(12 |
) |
|
|
(2,187 |
) |
|
-99.5 |
% |
|
Other income |
|
|
239 |
|
|
|
(219 |
) |
|
-209.1 |
% |
|
|
55 |
|
|
|
(287 |
) |
|
-119.2 |
% |
|
Total other income (expense) |
|
|
236 |
|
|
|
(222 |
) |
|
-206.3 |
% |
|
|
43 |
|
|
|
(2,474 |
) |
|
-101.7 |
% |
|
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|
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|
Loss before
income tax benefit |
|
|
(1,760 |
) |
|
|
(1,564 |
) |
|
12.5 |
% |
|
|
(4,110 |
) |
|
|
(5,557 |
) |
|
-26.0 |
% |
|
|
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|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit |
|
|
89 |
|
|
|
190 |
|
|
-53.2 |
% |
|
|
222 |
|
|
|
331 |
|
|
-32.9 |
% |
|
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|
|
|
|
|
|
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|
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|
Net
loss |
|
|
(1,671 |
) |
|
|
(1,374 |
) |
|
21.6 |
% |
|
|
(3,888 |
) |
|
|
(5,226 |
) |
|
-25.6 |
% |
|
Foreign
currency translation adjustment (loss) |
|
|
(246 |
) |
|
|
202 |
|
|
-221.8 |
% |
|
|
(164 |
) |
|
|
219 |
|
|
-174.9 |
% |
|
Comprehensive Loss |
|
$ |
(1,917 |
) |
|
$ |
(1,172 |
) |
|
63.6 |
% |
|
$ |
(4,052 |
) |
|
$ |
(5,007 |
) |
|
-19.1 |
% |
|
|
|
|
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|
|
|
|
|
|
|
|
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|
Basic and diluted net loss per share |
$ |
(0.21 |
) |
|
$ |
(0.23 |
) |
|
-8.7 |
% |
|
$ |
(0.55 |
) |
|
$ |
(0.97 |
) |
|
-43.3 |
% |
|
Weighted
average shares outstanding - basic and diluted |
|
|
7,888,609 |
|
|
|
6,009,904 |
|
|
31.3 |
% |
|
|
7,085,326 |
|
|
|
5,385,986 |
|
|
31.6 |
% |
|
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Sun BioPharma, Inc.Consolidated Balance
Sheets (unaudited)(In thousands, except share amounts)
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September 30, 2020 |
|
December 31, 2019 |
ASSETS |
|
(Unaudited) |
|
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Current
assets: |
|
|
|
|
Cash |
|
$ |
10,870 |
|
|
$ |
2,449 |
|
Prepaid expenses and other current assets |
|
|
335 |
|
|
|
283 |
|
Income tax receivable |
|
|
228 |
|
|
|
361 |
|
Total
current assets |
|
|
11,433 |
|
|
|
3,093 |
|
Other
noncurrent assets |
|
|
52 |
|
|
|
51 |
|
Total
assets |
|
$ |
11,485 |
|
|
$ |
3,144 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
422 |
|
|
$ |
597 |
|
Accrued expenses |
|
|
632 |
|
|
|
304 |
|
Term debt |
|
|
37 |
|
|
|
116 |
|
Payroll protection plan loan |
|
|
103 |
|
|
|
- |
|
Unsecured promissory note payable |
|
|
742 |
|
|
|
742 |
|
Total
current liabilities |
|
|
1,936 |
|
|
|
1,759 |
|
|
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|
Stockholders' equity: |
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|
Preferred stock, $0.001 par value; 10,000,000 authorized; no shares
issued or outstanding as of September 30, 2020 and December 31
2019 |
|
|
- |
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|
|
- |
|
Common stock, $0.001 par value; 100,000,000 authorized; 9,649,427
and 6,631,308 shares issued and outstanding as of September 30,
2020 and December 31, 2019 respectively |
|
|
10 |
|
|
|
7 |
|
Additional paid-in capital |
|
|
54,544 |
|
|
|
42,331 |
|
Accumulated deficit |
|
|
(45,146 |
) |
|
|
(41,258 |
) |
Accumulated comprehensive income |
|
|
141 |
|
|
|
305 |
|
Total
stockholders' equity |
|
|
9,549 |
|
|
|
1,385 |
|
Total
liabilities and stockholders' equity |
|
$ |
11,485 |
|
|
$ |
3,144 |
|
|
|
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Sun BioPharma, Inc.Consolidated
Statements of Cash Flows (unaudited)
(In thousands)
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Nine Months Ended September 30 |
|
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2020 |
|
2019 |
|
|
Cash
flows from operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(3,888 |
) |
|
$ |
(5,226 |
) |
|
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Stock-based compensation |
|
|
969 |
|
|
|
958 |
|
|
|
Amortization of debt discount |
|
|
- |
|
|
|
2,061 |
|
|
|
Amortization of debt issuance costs |
|
|
- |
|
|
|
12 |
|
|
|
Non-cash interest expense |
|
|
- |
|
|
|
102 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Income tax receivable |
|
|
133 |
|
|
|
44 |
|
|
|
Prepaid expenses and other current assets |
|
|
64 |
|
|
|
(12 |
) |
|
|
Accounts payable |
|
|
(347 |
) |
|
|
179 |
|
|
|
Accrued liabilities |
|
|
328 |
|
|
|
15 |
|
|
|
Net cash used in operating activities |
|
|
(2,741 |
) |
|
|
(1,867 |
) |
|
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Cash
flows from financing activities: |
|
|
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|
Proceeds from sale of common stock and warrants net of offering
costs of $2 |
|
|
1,746 |
|
|
|
3,142 |
|
|
|
Proceeds from public offering of common stock and warrants net of
underwriters discount and offering costs of $1,165 |
|
|
9,335 |
|
|
|
- |
|
|
|
Proceeds from the sale of convertible promissory notes, net of debt
issuance costs of $7 |
|
|
- |
|
|
|
810 |
|
|
|
Proceeds from exercise of warrants |
|
|
52 |
|
|
|
- |
|
|
|
Proceeds from payroll protection loan |
|
|
103 |
|
|
|
- |
|
|
|
Repayment of demand note |
|
|
- |
|
|
|
(25 |
) |
|
|
Repayments of term debt |
|
|
(81 |
) |
|
|
(82 |
) |
|
|
Net cash provided by financing activities |
|
|
11,155 |
|
|
|
3,845 |
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash |
|
|
7 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
Net change
in cash |
|
|
8,421 |
|
|
|
1,972 |
|
|
|
Cash at
beginning of period |
|
|
2,449 |
|
|
|
1,405 |
|
|
|
Cash at end
of period |
|
$ |
10,870 |
|
|
$ |
3,377 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
|
Cash paid during period for interest |
|
$ |
5 |
|
|
$ |
11 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash
transactions: |
|
|
|
|
|
|
Warrants issued for future services |
|
$ |
228 |
|
|
$ |
- |
|
|
|
Warrants issued to underwriter |
|
$ |
353 |
|
|
$ |
- |
|
|
|
Cashless exercise of warrants |
|
$ |
8 |
|
|
$ |
- |
|
|
|
Amortization of warrants as offering costs |
|
$ |
114 |
|
|
$ |
- |
|
|
|
Beneficial conversion feature on convertible notes |
|
$ |
- |
|
|
$ |
353 |
|
|
|
Warrants issued with convertible notes |
|
$ |
- |
|
|
$ |
419 |
|
|
|
Common stock converted into convertible notes payable |
|
$ |
- |
|
|
$ |
25 |
|
|
|
Conversion of convertible notes payable and accrued interest into
common stock |
|
$ |
- |
|
|
$ |
2,281 |
|
|
|
Issuance of unsecured promissory note in exchange of vendor
accounts payable |
|
$ |
- |
|
|
$ |
742 |
|
|
|
|
|
|
|
|
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|
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