LA JOLLA, Calif., May 9, 2019 /PRNewswire/ -- Regulus Therapeutics
Inc. (Nasdaq: RGLS), a biopharmaceutical company focused on
the discovery and development of innovative medicines targeting
microRNAs (the "Company" or "Regulus"), today reported financial
results for the first quarter ended March
31, 2019 and provided a summary of recent events.
"I am proud of the significant progress we have made thus far in
2019 to reposition Regulus with a strengthened balance sheet,
restructured term loan and reduced operating cash burn rate.
Importantly, the team has maintained its focus in its engagement
with FDA, and we look forward to resuming our ADPKD clinical
program pending FDA alignment. We believe the total potential
proceeds from the recent financing, highlighted by a strong
investor syndicate, provides sufficient capital to fund planned
activities into the second half of 2021," said Jay Hagan, CEO of Regulus. "We look forward to
providing future updates on our ADPKD program, as well as further
advancements from our promising preclinical pipeline."
First Quarter 2019 Corporate Highlights and Recent
Updates
- Private Financing: In May
2019, the Company closed the first tranche of its
$41.8 million private placement of
equity (the "Private Placement"). Regulus received net proceeds of
approximately $15.7 million from the
first tranche, after deducting placement agent fees and other
offering expenses. Subject to the Company's public announcement on
or before December 31, 2019 of its
plan to recommence the Phase 1 multiple ascending dose clinical
trial for RGLS4326 based upon correspondence from FDA, the
investors who purchased securities in the first tranche of the
Private Placement have agreed to purchase shares of non-voting
convertible preferred stock and accompanying warrants to purchase
shares of common stock in a second closing (the "Milestone
Closing"). If the Milestone Closing occurs, the gross proceeds to
the Company from that closing will be approximately $25.1 million. The Company expects to use the
proceeds from the Private Placement primarily to advance RGLS4326
for the treatment of ADPKD, to advance select programs from its
pipeline of microRNA therapies and for general corporate
purposes.
- Term Loan Amendments: In January
2019, March 2019, and
April 2019 the Company amended its
Term Loan with Oxford Finance to provide for additional periods of
interest only for the months of February
2019, March 2019, and
April 2019, respectively. The
maturity date of the Term Loan remained unchanged. In May 2019, and concurrently with the Private
Placement, the Company amended its Term Loan with Oxford Finance to
provide a new twelve-month period of interest-only payments,
commencing May 2019, and a two-year
extension of its maturity date from June
2020 to May 2022. Upon the
closing of the second tranche of the Company's Private Placement,
the Company will receive an additional twelve-month period of
interest-only payments, commencing May
2020.
- RG-012 Transition to Sanofi: In November 2018, the Company and Sanofi agreed to
transition further development activities of the miR-21 programs,
including the Company's RG-012 program, to Sanofi who will be
responsible for all costs incurred in the development of these
miR-21 programs (the "2018 Sanofi Amendment"). As of March 31, 2019, the transition activities,
including the transfer of the investigational new drug application
(""IND"), were substantially completed. The Company received
$2.5 million and $1.8 million in upfront and material
transfer-related payments in November
2018 and March 2019,
respectively. In April 2019, the
Company received an additional $2.5
million upfront payment. These payments, totaling
$6.8 million, were recognized as
revenue in the first quarter ended March 31,
2019. Regulus is also eligible to receive up to $40 million in clinical milestone payments.
- Lease Agreement: In February
2019, the Company entered into an amendment of its lease
(the "Lease Amendment") of 59,248 square feet located at 10614
Science Center Drive, San Diego,
California 92121. Under the terms of the Lease Amendment,
the expiration of the lease was accelerated from April 30, 2024 to March
31, 2019 and the lease terminated on April 1, 2019. Concurrently with the Lease
Amendment, the Company entered into a new lease agreement (the
"Lease") for 24,562 square feet at 10628 Science Center Drive,
Suite 100, San Diego, California,
92121, which it expects to use as its new principal offices and
laboratory for research and development. This relocation reduced
the Company's facility size by approximately 60% and reduced its
future contractual lease obligations by approximately 70%.
Program Updates
- RGLS4326 for ADPKD: In January
2019, the Company announced data from a planned interim
analysis of a new mouse chronic toxicity study after 13 weeks of
dosing in which no adverse or other significant findings across the
range of doses tested were shown. In January
2019, the Company submitted a comprehensive data package for
RGLS4326 to FDA that included the results from the planned 13-week
interim analysis of the repeat mouse chronic toxicity study, as
well as results from additional investigations, analytical testing,
additional data from the previously terminated mouse chronic
toxicity study, data from the completed Phase I SAD study and data
from the first cohort of the Phase I MAD study, to support its plan
to resume the Phase I MAD study. The Company's engagement with FDA
is ongoing.
- RGLS5579 for Glioblastoma Multiforme (GBM): In
January 2019, the Company announced
RGLS5579 as a clinical candidate for the treatment of GBM.
RGLS5579, which targets microRNA-10b, demonstrated statistically
significant improvements in survival as both a monotherapy as well
as in combination with temozolomide ("TMZ") in an orthotopic GBM
animal model. In combination with TMZ, the addition of a single
dose of RGLS5579, delivered intracranially, led to a more than
two-fold improvement in survival compared to TMZ alone. The Company
plans to seek a partner to further advance RGLS5579
development.
- Anti-miR-132 for Nonalcoholic Steatohepatitis (NASH): In
April 2019, Regulus presented a late
breaker poster at the EASL International Liver Congress™ describing
the development of its lead anti-miR-132 for the treatment of NASH.
Across multiple animal models of NASH, the lead candidate
demonstrated improvement in key endpoints, including NAFLD Activity
Score (NAS), liver transaminases, hyperglycemia, and
disease-related gene expression. In the diet-induced NASH mouse
model (Amylin model) after two to four weekly doses, early onset of
improvement across multiple disease parameters including liver
triglycerides and blood levels of transaminases was observed. After
nine weeks of treatment, there was evidence of sustained benefit
with significant improvement of liver fibrosis and hyperglycemia
compared to control-treated animals. The Company believes that
targeting dysregulated microRNA in a complex disease like NASH may
offer a unique mechanism of action from other programs in
development. The Company plans to seek a partner to further advance
the development of this program.
First Quarter 2019 Financial Results
Revenue: Revenue was $6.8
million for the three months ended March 31, 2019, compared to less than
$0.1 million for the three months
ended March 31, 2018. The increase
was associated with revenue recognition of the upfront payments
received under the 2018 Sanofi Amendment related to the transfer of
RG-012 during the three months ended March
31, 2019.
Cash Position: As of March
31, 2019, Regulus had $10.3
million in cash and cash equivalents.
Research and Development (R&D) Expenses:
R&D expenses were $6.0 million
for the three months ended March 31,
2019, compared to $11.8
million for the same period in 2018. The aggregate decrease
was driven by a $3.8 million decrease
in external development expenses during the three months ended
March 31, 2019, primarily
attributable to the pausing of the RGLS4326 program in the third
quarter of 2018 and commencement of the transfer of the RG-012
program to Sanofi under the 2018 Sanofi Amendment in the fourth
quarter of 2018. In addition, personnel and internal expenses
decreased by approximately $1.9
million, primarily as a result of a reduction in headcount
and related costs subsequent to our corporate restructuring in the
third quarter of 2018.
General and Administrative (G&A) Expenses:
G&A expenses were $3.5 million
for the three months ended March 31,
2019 compared to $3.8 million
for the same period in 2018. These amounts reflect
personnel-related and ongoing general business operating costs.
Net Loss: Net loss was $3.3
million, or $0.31 per share
(basic and diluted), for the three months ended March 31, 2019, compared to $16.0 million, or $1.85 per share (basic and diluted), for the same
period in 2018. Historical and current period net loss per
share values have been retroactively adjusted to reflect our
October 2018 reverse stock split.
About Autosomal Dominant Polycystic Kidney Disease
(ADPKD)
ADPKD, caused by the mutations in the PKD1 or PKD2 genes, is
among the most common human monogenic disorders and a leading cause
of end-stage renal disease. The disease is characterized by the
development of multiple fluid filled cysts primarily in the
kidneys, and to a lesser extent in the liver and other organs.
Excessive kidney cyst cell proliferation, a central pathological
feature, ultimately leads to end-stage renal disease in
approximately 50% of ADPKD patients by age 60. It is estimated that
approximately 1 in 1,000 people bear a mutation in either PKD1
or PKD2 genes worldwide.
About RGLS4326
RGLS4326 is a novel oligonucleotide designed to inhibit miR-17
and designed to preferentially target the kidney. Preclinical
studies with RGLS4326 have demonstrated direct regulation of PKD1
and PKD2 in human ADPKD cyst cells, a reduction in kidney cyst
formation, improved kidney weight/body weight ratio, decreased cyst
cell proliferation, and preserved kidney function in mouse models
of ADPKD.
About Regulus
Regulus Therapeutics Inc. (Nasdaq: RGLS) is a biopharmaceutical
company focused on the discovery and development of innovative
medicines targeting microRNAs. Regulus has leveraged its
oligonucleotide drug discovery and development expertise to develop
a pipeline complemented by a rich intellectual property estate in
the microRNA field. Regulus maintains its corporate
headquarters in La Jolla,
California. For more information, please visit
http://www.regulusrx.com.
Forward-Looking Statements
Statements contained in this press release regarding matters
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements associated with the expected ability
of Regulus to undertake certain activities and accomplish certain
goals (including with respect to development and other activities
related to RG-012, RGLS4326, RGLS5579 or its other preclinical
programs), Regulus' sales of securities, including timing, size and
completion of the Milestone Closing, its estimated cash runway and
anticipated cost savings associated with its planned reduction in
workforce, the projected timeline of clinical development
activities, and expectations regarding future therapeutic and
commercial potential of Regulus' business plans, technologies and
intellectual property related to microRNA therapeutics and
biomarkers being discovered and developed by Regulus. Because
such statements are subject to risks and uncertainties, actual
results may differ materially from those expressed or implied by
such forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "intends," "will," "goal,"
"potential" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
based upon Regulus' current expectations and involve assumptions
that may never materialize or may prove to be incorrect.
Actual results and the timing of events could differ materially
from those anticipated in such forward-looking statements as a
result of various risks and uncertainties, which include, without
limitation, risks associated with the process of discovering,
developing and commercializing drugs that are safe and effective
for use as human therapeutics, and in the endeavor of building a
business around such drugs. These and other risks concerning
Regulus' financial position and programs are described in
additional detail in Regulus filings with the Securities and
Exchange Commission. All forward-looking statements contained
in this press release speak only as of the date on which they were
made. Regulus undertakes no obligation to update such statements to
reflect events that occur or circumstances that exist after the
date on which they were made.
Regulus
Therapeutics Inc.
|
|
Selected Financial
Information
|
Condensed
Statement of Operations
|
(In thousands,
except share and per share data)
|
|
|
|
Three months
ended
March
31,
|
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
Revenue under
strategic
alliances
|
|
$
|
6,778
|
|
$
|
18
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
|
5,983
|
|
11,828
|
General and
administrative
|
|
3,533
|
|
3,773
|
Total operating
expenses
|
|
9,516
|
|
15,601
|
Loss from
operations
|
|
(2,738)
|
|
(15,583)
|
Other expense,
net
|
|
(522)
|
|
(441)
|
Loss before income
taxes
|
|
(3,260)
|
|
(16,024)
|
Income tax
benefit
|
|
|
-
|
|
|
(1)
|
Net loss
|
|
$
|
(3,260)
|
|
$
|
(16,025)
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.31)
|
|
$
|
(1.85)
|
Weighted average
shares used to compute basic and diluted net loss per
share:
|
|
|
10,379,830
|
|
|
8,668,695
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Unaudited)
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,320
|
|
$
|
13,935
|
Total assets
|
|
19,877
|
|
27,927
|
Term loan, less debt issuance costs
|
|
15,225
|
|
16,575
|
Stockholders' deficit
|
|
|
(6,069)
|
|
|
(5,854)
|
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SOURCE Regulus Therapeutics Inc.