MARLBOROUGH, Mass.,
Nov. 12, 2015 /PRNewswire/ -- RXi
Pharmaceuticals Corporation (NASDAQ: RXII), a biotechnology company
focused on discovering and developing innovative therapeutics
primarily in the areas of dermatology and ophthalmology, today
reported its financial results for the quarter ended September 30, 2015 and provided a business
update.
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"Since the beginning of Q3 of this year, RXi has made great
progress on many fronts," said Dr. Geert
Cauwenbergh, President and CEO of RXi Pharmaceuticals. He
added that, "The Company achieved important value inflection
events, (1) announced positive clinical data results with RXI-109
for the treatment of hypertrophic scars, (2) the activation of an
IND for our ophthalmology program with RXI-109, (3) granted several
patents strengthening our valuable intellectual property estate,
(4) made an exciting discovery that our sd-rxRNA® platform can be
used to target long non-coding RNAs, and (5) selected two sd-rxRNA
compounds for development in the cosmetic space of skin care. We
outlined a strategic plan to deliver increased shareholder value
over the next twelve months during our last earnings call in August
and we are confident that our achievements to date have laid the
foundation for accelerated value creation."
The Company will host a conference call today at 4:30 p.m. EST to discuss financial results and
provide an update on the Company. The webcast link will be
available under the "Investors" section of the Company's website,
www.rxipharma.com. The event may also be accessed by dialing
toll-free in the United States and
Canada: +1 888-669-0684.
International participants may access the event by dialing: +1
862-225-5361. An archive of the webcast will be available on the
Company's website approximately two hours after the
presentation.
Selected Third Quarter 2015 Financial Highlights
Common Stock
On November 4, 2015, the NASDAQ
Stock Market (NASDAQ) provided written notice and granted the
Company an additional 180 calendar days to regain compliance with
the minimum bid price requirements set forth in the NASDAQ listing
rules. As a result of the extension, the Company has until
May 2, 2016 to regain compliance by
maintaining a closing bid price of at least $1.00 for 10 consecutive business days. The
Company intends to closely monitor the closing bid price of its
common stock and may consider implementing available options, if
appropriate, to regain compliance. The NASDAQ written notice has no
effect on the listing of the Company's common stock at this
time.
Cash Position
At September 30, 2015, the Company
had cash, cash equivalents and short-term investments of
approximately $12.0 million,
compared with cash and cash equivalents of $8.5 million at December
31, 2014.
The Company believes that its existing cash, cash equivalents
and short-term investments should be sufficient to fund operations
for at least one year.
Research and Development Expenses
Research and development expenses for the quarter ended
September 30, 2015 were $1.7 million, which included $0.2 million of non-cash stock-based compensation
expense, as compared with $1.5
million for the quarter ended September 30, 2014, which included $0.2 million of non-cash stock-based compensation
expense. The increase in research and development expenses in the
third quarter of 2015 as compared to the third quarter of 2014 was
primarily due to a new drug manufacture of RXI-109 that commenced
early in the third quarter of 2015.
General and Administrative Expenses
General and administrative expenses for the quarter ended
September 30, 2015 were $0.8 million, which included $0.2 million of non-cash stock-based compensation
expense, as compared with $0.8
million for the quarter ended September 30, 2014, which included $0.2 million of non-cash stock-based compensation
expense. General and administrative expenses in the third quarter
of 2015 were consistent with those in the third quarter of
2014.
Net Loss Applicable to Common Stockholders
Net loss applicable to common stockholders for the quarter ended
September 30, 2015 was $2.5 million, compared with $2.9 million for the quarter ended September 30, 2014. The decrease in net loss
applicable to common stockholders in the third quarter of 2015 as
compared to the third quarter of 2014 was due to the change in
operating expenses, driven by research and development expenses as
described above, and a decrease in the Company's preferred stock
dividends as all outstanding shares of Series A and Series A-1
convertible preferred stock were converted into common stock in the
second quarter of 2015. As a result of the full conversion, there
will be no further accumulation and payment of dividends on these
series of preferred stock.
Third Quarter 2015 and Recent Corporate Highlights
Ophthalmology
The Company continued to make advancements within its
Ophthalmology Franchise with the initiation of a clinical trial,
RXI-109-1501. This Phase 1/2 study will evaluate the safety
and clinical activity of RXI-109 to prevent the progression of
retinal scarring, a harmful component of numerous retinal
diseases. Currently, there is no effective way to prevent the
formation or progression of retinal scars that may occur as a
consequence of several devastating ocular diseases.
RXI-109 is a self-delivering RNAi (sd-rxRNA) compound developed
to target connective tissue growth factor (CTGF), a key regulator
of scar formation in the skin and known to be involved in retinal
scarring as well. Wet AMD is currently treated with anti-VEGF
therapies to block vascular endothelial growth factor (VEGF) from
causing blood vessel leakiness and the consequential damage to the
retina. However, as the disease progresses, many advanced patients
also experience retinal scarring which leads to further vision
loss. Our ultimate goal is to reduce the scarring that is secondary
to advanced wet AMD and in doing so, preserve vision for a longer
period time.
Currently, there are no approved therapeutics in the U.S. for
the treatment and prevention of subretinal fibrosis. Such a therapy
could benefit patients with the advanced wet AMD as well as those
with other ocular indications with a scarring component such as
proliferative vitreoretinopathy (PVR) and proliferative diabetic
retinopathy (PDR).
Dermatology
Several key advancements were announced within the Company's
Dermatology Franchise. Results from the Company's Phase 2
clinical trial for the treatment of hypertrophic scars with RXI-109
showed that sites treated with RXI-109 after scar revision surgery
achieved better scores as compared to untreated sites in the same
subjects, three months after the scar revision surgery. All
subjects were assessed using four evaluation methods and the
results indicate that the RXI-109-treated revision sites scored
statistically significantly better than the untreated revision
sites in all four evaluations.
Not only do these four evaluation methods confirm the same
positive conclusion, the results also bring the Company another
step closer to identifying the final treatment schedule for RXI-109
in the management of surgical incision sites in subjects prone to
hypertrophic scarring. Our continued clinical development will now
focus on identifying the optimum treatment length.
RXi's cosmetic development program ('cosmeceuticals') is based
on its proprietary self-delivering RNAi (sd-rxRNA)
technology. The term 'cosmeceuticals' refers to compounds
that affect the appearance of the skin and make no preventative or
therapeutic claims. These compounds may be developed more
rapidly than therapeutics, therefore the path to market may be much
shorter and less expensive.
The Company has selected collagenase and tyrosinase as targets
for our self-delivering RNAi platform. These two targets are
excellent additions to our dermatology franchise because they are
relevant for both cosmeceutical and pharmaceutical
development. The combined global market potential for
cosmetic product development is approximately $200B for skin lightening and skin
rejuvenation. RXi's is currently evaluating topical forms of
delivery for these compounds.
Two lead compounds have been selected to move forward into
cosmetic product development. RXI-231, an sd-rxRNA compound
developed to target TYR, has been selected for development as a
product that may act as a skin lightening agent. Treatment with
RXI-231 resulted in a visible reduction of pigmentation in
melanocytes in a 3-dimensional tissue culture model of human
epidermis. RXI-185, an sd-rxRNA compound developed to target MMP1,
has been selected for development as a product that may improve
skin appearance. Results from studies evaluating RXI-185 show a
pronounced reduction in MMP1 mRNA levels that correspond to a
similar reduction in MMP1 enzyme activity in cell culture in vitro.
The Company is also actively testing other sd-rxRNAs targeting TYR
and MMP1 for possible therapeutic development.
Research
Remarkable and positive results from a collaborative study with
Biogazelle NV produced a significant advancement for RXi's
proprietary sd-rxRNA platform. Specifically designed
sd-rxRNAs demonstrated robust and potent reduction of the levels of
long non-coding RNAs (lncRNAs) in a target specific manner. lncRNAs
are a diverse class of non-protein coding RNA molecules that are
greater than 200 nucleotides in length. lncRNAs are involved
in crucial cellular processes, including the regulation of gene
expression, and have been implicated in many diseases and
disorders, including cancer, cardiovascular diseases, neurological
disorders, diabetes and HIV.
This discovery constitutes a significant value inflection point
for our self-delivering platform by expanding the breadth of
therapeutic targets by four fold. This expands business development
and partnering opportunities with our sd-rxRNA platform, further
supporting RXi's initiatives to build shareholder value.
Intellectual Property
The Company has been diligent and proactive with its approach to
broadly protect its valuable corporate assets by securing
protection for its RNAi platform.
A core patent granted by the United States Patent and Trademark
Office (USPTO) expands the scope of coverage of the Company's core
self-delivering RNAi (sd-rxRNA) platform. This patent broadly
covers the overall structure and modifications of our
self-delivering technology in addition to covering an alternative
delivery strategy wherein a hydrophobic conjugate is not
utilized.
A second issued patent was granted by the State Intellectual
Property Office of the People's Republic
of China (SIPO) for the composition and methods of use for
RXI-109 and other connective tissue growth factor (CTGF) targeting
self-delivering RNAi compounds (sd-rxRNA) for the treatment of
fibrotic disorders, including skin fibrosis. RXI-109 and other
CTGF-targeting sd-rxRNA compounds may be beneficial for the
treatment of fibrotic diseases, including dermal scarring, a
condition with a much higher prevalence in people with darker skin.
Skin pigmentation is classified in VI categories known as the
Fitzpatrick scale. In China,
individuals tend to have skin types between III and V. The
prevalence rates for hypertrophic scarring in individuals with
higher Fitzpatrick phototypes can be up to 40-70% following
surgery, making China a
significant market for RXI-109 in the treatment of dermal scarring.
According to Persistence Market Research, China is predicted to be one of the fastest
growing markets for scar treatments in Asia.
In addition, RXi was issued a patent from the USPTO covering the
methods of use of siRNA sequences targeting vascular endothelial
growth factor (VEGF). The patent is part of RXi's acquired OPKO
estate. RNAi compounds targeting these VEGF sequences may be
beneficial for the treatment of neovascularization disorders,
including wet age-related macular degeneration (AMD) and diabetic
retinopathy. RNAi compounds targeting these sequences also have the
potential to be useful in combination with RXI-109 which could
address both the neovascularization and scarring components
encountered in AMD.
The issuance of these patents not only expands and strengthens
our intellectual property estate, it further increases the value
proposition of our both our Dermatology and Ophthalmology
Franchises and positions the Company for numerous strategic
partnering opportunities.
About RXi Pharmaceuticals Corporation
RXi Pharmaceuticals Corporation (NASDAQ: RXII) is a
biotechnology company focused on discovering and developing
innovative therapeutics primarily in the areas of dermatology and
ophthalmology that address high-unmet medical needs. Our discovery
and clinical development programs are based on siRNA technology as
well as immunotherapy agents. These compounds include, but are not
limited to, our proprietary, self-delivering RNAi (sd-rxRNA®)
compounds for the treatment of dermal and ocular scar formation. It
also includes an immunomodulator, Samcyprone™, a proprietary
topical formulation of diphenylcyclopropenone (DPCP), for the
treatment of disorders such as warts, alopecia areata,
non-malignant skin tumors and cutaneous metastases of melanoma.
Building on the pioneering work of RXi's Scientific Advisory
Board Chairman and Nobel Laureate Dr. Craig
Mello, the Company's first RNAi product candidate, RXI-109
(an sd-rxRNA compound) is the Company's first clinical development
candidate. RXI-109 silences Connective Tissue Growth Factor (CTGF),
which plays a key role in tissue regeneration and repair and is
initially being developed to reduce or inhibit scar formation in
the skin and in the eye. RXI-109 is currently being evaluated in
Phase 2a clinical trials in dermatology and a Phase 1/2 trial is
planned to initiate this year in ophthalmology.
RXi's robust pipeline, coupled with an extensive patent
portfolio, provides for product and business development
opportunities across a broad spectrum of therapeutic areas. We are
committed to being a partner of choice for academia, small
companies, and large multinationals. We welcome ideas and proposals
for strategic alliances, including in- and out-licensing
opportunities, to advance and further develop strategic areas of
interest. Additional information may be found on the Company's
website, www.rxipharma.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about: our ability to successfully develop RXI-109, Samcyprone™ and
our other product candidates (collectively "our product
candidates"); the future success of our clinical trials with our
product candidates; the timing for the commencement and completion
of clinical trials; our ability to enter into strategic
partnerships and the future success of these strategic
partnerships; and our ability to deploy our sd-rxRNA® technology
through partnerships, as well as the prospects of these
partnerships to provide positive returns. Forward-looking
statements about expectations and development plans of RXi's
product candidates and partnerships involve significant risks and
uncertainties, including the following: risks that we may not be
able to successfully develop and commercialize our product
candidates; risks that product development and clinical studies may
be delayed, not proceed as planned and/or be subject to significant
cost over-runs; risks related to the development and
commercialization of products by competitors; risks related to our
ability to control the timing and terms of collaborations with
third parties; and risks that other companies or organizations may
assert patent rights preventing us from developing or
commercializing our product candidates. Additional risks are
detailed in our most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q under the caption "Risk
Factors." Readers are urged to review these risk factors and
to not act in reliance on any forward-looking statements, as actual
results may differ from those contemplated by our forward-looking
statements. RXi does not undertake to update forward-looking
statements to reflect a change in its views, events or
circumstances that occur after the date of this release.
Contact
RXi Pharmaceuticals Corporation
Tamara McGrillen
508-929-3646
tmcgrillen@rxipharma.com
RXi
PHARMACEUTICALS CORPORATION
|
CONDENSED
STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except share and per share
data) (Unaudited)
|
|
|
|
For the
Three
|
|
For the
Three
|
|
For the
Nine
|
|
For the
Nine
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
September 30,
2015
|
|
September 30,
2014
|
|
September 30,
2015
|
|
September 30,
2014
|
|
Revenue
|
$
—
|
|
$
16
|
|
$
34
|
|
$
57
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
1,734
|
|
1,459
|
|
5,202
|
|
4,118
|
|
General and
administrative
|
770
|
|
766
|
|
2,447
|
|
2,459
|
|
Total
operating expenses
|
2,504
|
|
2,225
|
|
7,649
|
|
6,577
|
|
Operating
loss
|
(2,504)
|
|
(2,209)
|
|
(7,615)
|
|
(6,520)
|
|
Interest income,
net
|
8
|
|
4
|
|
10
|
|
15
|
|
Other income
(expense), net
|
—
|
|
(1)
|
|
(2)
|
|
9
|
|
Net loss
|
(2,496)
|
|
(2,206)
|
|
(7,607)
|
|
(6,496)
|
|
Series A and
Series A-1 convertible
preferred stock dividends
|
—
|
|
(700)
|
|
(209)
|
|
(3,668)
|
|
Net loss
applicable to common stockholders
|
$
(2,496)
|
|
$
(2,906)
|
|
$
(7,816)
|
|
$
(10,164)
|
|
Net loss per common share applicable to
common
stockholders:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$
(0.04)
|
|
$
(0.17)
|
|
$
(0.18)
|
|
$
(0.69)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
64,949,121
|
|
17,494,109
|
|
44,451,927
|
|
14,726,417
|
|
|
|
|
|
|
|
|
|
|
|
|
RXi
PHARMACEUTICALS CORPORATION
|
|
|
|
|
CONDENSED BALANCE
SHEETS
|
|
|
|
|
(Amounts in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 4,035
|
|
$ 8,496
|
|
Restricted
cash
|
50
|
|
50
|
|
Short-term
investments
|
8,000
|
|
—
|
|
Prepaid expenses and
other current assets
|
432
|
|
442
|
|
Total current
assets
|
12,517
|
|
8,988
|
|
Property and
equipment, net
|
162
|
|
183
|
|
Other
assets
|
18
|
|
18
|
|
Total
assets
|
$ 12,697
|
|
$
9,189
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE PREFERRED STOCK AND
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
222
|
|
$
285
|
|
Accrued expenses and
other current liabilities
|
1,443
|
|
1,002
|
|
Deferred
revenue
|
—
|
|
47
|
|
Total current
liabilities
|
1,665
|
|
1,334
|
|
Total convertible
preferred stock
|
—
|
|
5,110
|
|
Total stockholders'
equity
|
11,032
|
|
2,745
|
|
Total liabilities,
convertible preferred stock and stockholders' equity
|
$ 12,697
|
|
$
9,189
|
|
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visit:http://www.prnewswire.com/news-releases/rxi-pharmaceuticals-reports-third-quarter-2015-financial-results-and-business-highlights-300177934.html
SOURCE RXi Pharmaceuticals Corporation