Odonate Therapeutics, Inc. (NASDAQ: ODT) today announced financial results for the three months ended March 31, 2021.
Odonate recently announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations. Odonate is working with clinical sites to transition patients in ongoing tesetaxel studies to appropriate alternative therapies or facilitate continuation of treatment with tesetaxel under compassionate use programs where appropriate.
As of March 31, 2021, Odonate had $133.2 million in cash compared to $157.3 million as of December 31, 2020. This decrease in cash resulted primarily from cash used in operating activities for the three months ended March 31, 2021 of $24.9 million. Odonate’s net loss for the three months ended March 31, 2021 and 2020 was $33.8 million and $30.2 million, or $0.90 and $0.99 per share, respectively.
About Odonate Therapeutics, Inc.
Odonate Therapeutics, Inc. is a pharmaceutical company formerly focused on the development of tesetaxel, an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer. Odonate recently announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations.
ODONATE THERAPEUTICS, INC. Condensed Balance Sheets (in thousands, except par value and share amounts) | ||||||||
March 31, | December 31, | |||||||
2021 | 2020 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 133,160 | $ | 157,265 | ||||
Prepaid expenses and other current assets | 2,943 | 2,607 | ||||||
Total current assets | 136,103 | 159,872 | ||||||
Property and equipment, net | 2,132 | 2,286 | ||||||
Right-of-use lease assets | 3,876 | 4,017 | ||||||
Restricted cash | 714 | 714 | ||||||
Other | 54 | 997 | ||||||
Total assets | $ | 142,879 | $ | 167,886 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 15,252 | $ | 14,168 | ||||
Accrued expenses | 17,128 | 12,247 | ||||||
Lease liabilities, current portion | 715 | 658 | ||||||
Total current liabilities | 33,095 | 27,073 | ||||||
Lease liabilities, less current portion | 4,483 | 4,668 | ||||||
Total liabilities | 37,578 | 31,741 | ||||||
Stockholders' equity: | ||||||||
Common stock, $0.01 par value—100,000,000 shares authorized; 38,507,109 and 38,562,281 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 368 | 367 | ||||||
Additional paid-in capital | 505,128 | 502,205 | ||||||
Accumulated deficit | (400,195 | ) | (366,427 | ) | ||||
Total stockholders' equity | 105,301 | 136,145 | ||||||
Total liabilities and stockholders' equity | $ | 142,879 | $ | 167,886 | ||||
ODONATE THERAPEUTICS, INC. Condensed Statements of Operations (Unaudited) (in thousands, except share and per share amounts) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Operating expenses: | ||||||||
Research and development | $ | 30,928 | $ | 27,947 | ||||
General and administrative | 2,890 | 2,874 | ||||||
Total operating expenses | 33,818 | 30,821 | ||||||
Loss from operations | (33,818 | ) | (30,821 | ) | ||||
Other income, net | 50 | 658 | ||||||
Net loss | $ | (33,768 | ) | $ | (30,163 | ) | ||
Net loss per share: | ||||||||
Basic and diluted | $ | (0.90 | ) | $ | (0.99 | ) | ||
Weighted-average shares outstanding: | ||||||||
Basic and diluted | 37,400,369 | 30,610,696 | ||||||
ODONATE THERAPEUTICS, INC. Condensed Statements of Cash Flows (Unaudited) (in thousands) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (33,768 | ) | $ | (30,163 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Equity-based compensation expense | 2,099 | 2,586 | ||||||
Depreciation and amortization | 126 | 62 | ||||||
Non-cash lease expense | 141 | - | ||||||
Loss on disposal of property and equipment | 53 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses and other assets | 607 | (624 | ) | |||||
Accounts payable | 1,080 | (696 | ) | |||||
Accrued expenses | 4,881 | 990 | ||||||
Lease liabilities | (128 | ) | - | |||||
Net cash used in operating activities | (24,909 | ) | (27,845 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (21 | ) | (19 | ) | ||||
Net cash used in investing activities | (21 | ) | (19 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock under employee stock plans | 825 | 521 | ||||||
Net cash provided by financing activities | 825 | 521 | ||||||
Net decrease in cash and restricted cash | (24,105 | ) | (27,343 | ) | ||||
Cash and restricted cash, beginning of period | 157,979 | 181,174 | ||||||
Cash and restricted cash, end of period | $ | 133,874 | $ | 153,831 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Property and equipment purchases included in accounts payable | $ | 4 | $ | 7 | ||||
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Contacts:
Michael Hearne
Chief Financial Officer
(332) 208-7611
mhearne@odonate.com
