Metacrine Reports First-Quarter 2022 Results
May 12 2022 - 4:05PM
Metacrine, Inc. (NASDAQ:MTCR), a clinical-stage biopharmaceutical
company pioneering differentiated therapies for patients with
gastrointestinal diseases, today reported its first-quarter 2022
financial results and provided a business update.
Metacrine announced today that it has engaged a strategic
financial advisor and initiated a review of strategic alternatives
with the goal of maximizing shareholder value. Potential strategic
alternatives to be explored and evaluated may include a merger,
sale, or other business combination, a strategic partnership with
one or more parties, or the licensing, sale or divestiture of its
programs.
“Our cash position through 2023 provides us the opportunity to
carefully consider a wide range of potential strategic alternatives
designed to maximize shareholder value,” said Preston Klassen,
M.D., MHS, president and chief executive officer of Metacrine.
“As we assess potential strategic alternatives, we have delayed
clinical development efforts related to our planned Phase 2a
clinical trial of MET642 for the treatment of Ulcerative
Colitis.”
First-Quarter 2022 Financial Results
- Cash Balance - Cash, cash equivalents and
short-term investments were $62.7 million as of March 31,
2022. Metacrine believes it has sufficient capital to fund its
current operating plan through 2023.
- R&D Expenses - Research and development
expenses were $6.7 million for the three months ended March
31, 2022, as compared to $10.9 million for the prior-year period.
The decrease was primarily driven by lower clinical development
costs related to the advancement of our MET409 and MET642
programs.
- G&A Expenses - General and administrative
expenses were $5.5 million for the three months ended March
31, 2022, as compared to $3.7 million for the prior-year period.
The increase was attributable to higher employee-related costs and
expenses associated with operating as a publicly traded
company.
- Restructuring Charges -
Restructuring charges were $0.9 million for the three months ended
March 31, 2022, as compared to none for the prior-year period.
Restructuring charges were attributable to the restructuring plan
implemented in February 2022. The restructuring plan was completed
in April 2022.
- Gain from Lease Termination and Asset Sale
– Gain from lease termination and asset sale was
$0.5 million for the three months ended March 31, 2022, as compared
to none for the prior-year period. The gain from lease termination
and asset sale was related to the termination of the facility lease
for our former corporate headquarters and sale of certain personal
property in March 2022.
- Net Loss - Net loss
was $12.9 million for the three months ended March 31, 2022, as
compared to $14.8 million for prior-year period.
About Metacrine
Metacrine, Inc. is a clinical-stage biopharmaceutical company
developing differentiated therapies to treat gastrointestinal
diseases. Metacrine has developed a proprietary farnesoid X
receptor (FXR) platform utilizing a unique chemical scaffold, which
has demonstrated an improved therapeutic profile in clinical
trials. To learn more, visit www.metacrine.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Statements in this press release that are not purely
historical are forward-looking statements. Such forward-looking
statements include, among other things, statements about the
design, progress, timing, scope and results of clinical trials;
plans for initiating future clinical trials and studies; plans for
optimizing Metacrine’s capital resources; anticipated drivers of
value; and statements about Metacrine’s evaluation of strategic
alternatives. Words such as “may,” “will,” “expect,” “plan,” “aim,”
“projected,” “likely,” ”anticipate,” “estimate,” “intend,”
“potential,” “prepare,” “perceived,” “believes” and similar
expressions (as well as other words or expressions referencing
future events, conditions or circumstances) are intended to
identify forward-looking statements. These forward-looking
statements are based on Metacrine’s expectations and assumptions
that may never materialize or prove to be incorrect. Each of these
forward-looking statements involves risks and uncertainties. Actual
results may differ materially from those projected in any
forward-looking statements due to numerous risks and uncertainties,
including but not limited to: risks related to Metacrine’s ability
to identify and consummate strategic alternatives that yield
additional value for stockholders; the timing, benefits and outcome
of Metacrine’s strategic alternatives review process, including the
determination of whether or not to pursue or consummate any
strategic alternative; the structure, terms and specific risks and
uncertainties associated with any potential strategic transaction;
potential disruptions in Metacrine’s business and the stock price
as a result of the evaluation of strategic alternatives or the
public announcement thereof and any decision or transaction
resulting from such evaluation; potential delays in initiating,
enrolling or completing any clinical trials; competition from third
parties; and Metacrine’s ability to obtain, maintain and protect
its intellectual property. Information regarding the foregoing and
additional risks may be found in the section entitled “Risk
Factors” in Metacrine’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission (the “SEC”) on May 12, 2022,
and in Metacrine’s other filings with the SEC. All forward-looking
statements contained in this press release speak only as of the
date on which they were made. Except as required by law, Metacrine
assumes no obligation to update any forward-looking statements
contained herein to reflect any change in expectations, even as new
information becomes available.
Investor & Media Contact
Investor RelationsMetacrine, Inc.investors@metacrine.com
Metacrine, Inc.
Unaudited Condensed Consolidated
Statements of Operations(In thousands)
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
|
2021 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
$ |
6,680 |
|
|
$ |
10,857 |
|
General and administrative |
|
5,482 |
|
|
|
3,696 |
|
Restructuring charges |
|
858 |
|
|
|
— |
|
Gain from lease termination and asset sale |
|
(508 |
) |
|
|
— |
|
Total operating expenses |
|
12,512 |
|
|
|
14,553 |
|
Loss from operations |
|
(12,512 |
) |
|
|
(14,553 |
) |
Total other income
(expense) |
|
(368 |
) |
|
|
(215 |
) |
Net loss |
$ |
(12,880 |
) |
|
$ |
(14,768 |
) |
Metacrine, Inc.
Unaudited Condensed Consolidated Balance
Sheets(In thousands)
|
|
March 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash, cash equivalents, and short-term investments |
|
$ |
62,689 |
|
|
$ |
76,427 |
|
Prepaid expenses and other current assets |
|
|
4,047 |
|
|
|
2,313 |
|
Total current assets |
|
|
66,736 |
|
|
|
78,740 |
|
Property and equipment, net |
|
|
— |
|
|
|
347 |
|
Operating lease right-of-use
asset |
|
|
— |
|
|
|
902 |
|
Total assets |
|
$ |
66,736 |
|
|
$ |
79,989 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
264 |
|
|
$ |
368 |
|
Accrued and other current liabilities |
|
|
5,209 |
|
|
|
7,392 |
|
Total current liabilities |
|
|
5,473 |
|
|
|
7,760 |
|
Long-term debt, net of debt
discount |
|
|
13,425 |
|
|
|
13,303 |
|
Other long-term liabilities |
|
|
1,388 |
|
|
|
1,571 |
|
Stockholders’ equity |
|
|
46,450 |
|
|
|
57,355 |
|
Total liabilities and stockholders’ equity |
|
$ |
66,736 |
|
|
$ |
79,989 |
|
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