ARCA biopharma Announces 2023 Financial Results
February 01 2024 - 4:35PM
ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company
applying a precision medicine approach to developing genetically
targeted therapies for cardiovascular diseases, today reported 2023
financial results and provided a corporate update.
In April 2022, the Board of Directors
established a Special Committee (the “Special Committee”) and, in
May 2022, retained Ladenburg Thalmann & Co. Inc. (“Ladenburg”)
to evaluate strategic options, including transactions involving a
merger, sale of all or part of the Company’s assets, or other
alternatives with the goal of maximizing stockholder value (the
“Strategic Review”). The Company and Ladenburg have reviewed
several potential strategic transactions and continue to evaluate
further potential development of the Company’s existing assets, in
order to maximize stockholder value. The Company does not have a
defined timeline for the strategic review process and the review
may not result in any specific action or transaction.
Full Year 2023 Summary Financial
Results
Cash and cash equivalents were
$37.4 million as of December 31, 2023, compared to
$42.4 million as of December 31, 2022. ARCA believes that its
current cash and cash equivalents, consisting primarily of money
market funds, will be sufficient to fund its operations through the
middle of 2025.
General and administrative (G&A)
expenses were $6.3 million for the year ended
December 31, 2023, compared to $5.8 million for 2022, an
increase of approximately $0.4 million. During the year ended
December 31, 2023, the Company recorded $159,000 for one-time
termination benefits related to the mutually-agreed to conclusion
of Christopher D. Ozeroff's employment, the former Secretary,
Senior Vice President and General Counsel of ARCA, effective March
31, 2023. During the year ended December 31, 2022, the Company
recorded total restructuring charges of approximately $755,000, of
which $470,000 and $285,000 were recognized in research and
development and general and administrative expenses, respectively,
in connection with the restructuring, all in the form of one-time
termination benefits. The increase in expenses during 2023 was
primarily a result of increases in professional fees and fees to
the Special Committee in connection with the Strategic Review,
offset by lower one-time termination benefits and lower personnel
costs from the reductions discussed above. G&A expenses in 2024
are expected to be consistent with those in 2023 as the Company
maintains administrative activities to support our ongoing
operations.
Research and development
(R&D) expenses were $1.0 million for the year ended
December 31, 2023, compared to $4.7 million for 2022, a
$3.7 million decrease. R&D personnel costs decreased
approximately $1.2 million for the year ended December 31,
2023, as compared to the corresponding periods of 2022, due to
one-time termination benefits incurred in 2022 and decreased
headcount from the July 2022 personnel reduction discussed
above. Clinical expense decreased approximately $1.0 million
for the year ended December 31, 2023, as compared to the
corresponding period of 2022. Manufacturing process development
costs decreased approximately $1.1 million for the year ended
December 31, 2023, as compared to the corresponding period of
2022. The majority of clinical and manufacturing close out
costs related to the rNAPc2 (AB201) international Phase 2b clinical
trial were incurred in the first half of 2022, with no comparable
costs for the corresponding periods of 2023. R&D expenses in
2024 are expected to be lower than 2023.
Total operating expenses for
the year ended December 31, 2023 were $7.3 million
compared to $10.6 million in 2022.
Net loss for the year ended
December 31, 2023 was $5.3 million, or $0.37 per basic
and diluted share, compared to $9.9 million, or $0.69 per basic and
diluted share in 2022.
About ARCA biopharmaARCA
biopharma is dedicated to developing genetically and other targeted
therapies for cardiovascular diseases through a precision medicine
approach to drug development. At present, ARCA is evaluating
options for development of its assets, including partnering and
other strategic options. For more information, please visit
www.arcabio.com or follow the Company on LinkedIn.
Safe Harbor StatementThis press
release contains "forward-looking statements" for purposes of the
safe harbor provided by the Private Securities Litigation Reform
Act of 1995. These statements include, but are not limited to,
statements regarding potential future development plans for Gencaro
and rNAPc2, if any, and the Company’s review of strategic options.
Such statements are based on management's current expectations and
involve risks and uncertainties. Actual results and performance
could differ materially from those projected in the forward-looking
statements as a result of many factors, including, without
limitation, the risks and uncertainties associated with: ARCA’s
financial resources and whether they will be sufficient to meet its
business objectives and operational requirements; ARCA’s ability to
raise sufficient capital on acceptable terms, or at all; the
Company’s ability to continue development of Gencaro or rNAPc2 or
to otherwise continue operations in the future; the Company’s
ability to complete a strategic transaction; results of earlier
clinical trials may not be confirmed in future clinical trials; the
protection and market exclusivity provided by ARCA’s intellectual
property; risks related to the drug discovery and the regulatory
approval processes; and the impact of competitive products and
technological changes. These and other factors are identified and
described in more detail in ARCA’s filings with the Securities and
Exchange Commission, including without limitation ARCA’s annual
report on Form 10-K for the year ended December 31, 2023,
and subsequent filings. ARCA disclaims any intent or obligation to
update these forward-looking statements.
All forward-looking statements in this press
release are current only as of the date hereof and, except as
required by applicable law, ARCA undertakes no obligation to revise
or update any forward-looking statement, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise. All forward-looking statements are
qualified in their entirety by this cautionary statement.
Investor & Media
Contact:Jeff Dekker720.940.2122ir@arcabio.com
(Tables follow)
ARCA BIOPHARMA, INC.BALANCE SHEET
DATA (in thousands)
(unaudited) |
|
|
December 31, 2023 |
|
December 31, 2022 |
Cash and cash equivalents |
$ |
37,431 |
|
|
$ |
42,445 |
|
Working capital |
$ |
36,955 |
|
|
$ |
41,567 |
|
Total assets |
$ |
37,861 |
|
|
$ |
43,085 |
|
Total stockholders’ equity |
$ |
37,020 |
|
|
$ |
41,673 |
|
|
|
|
|
|
|
|
|
ARCA BIOPHARMA, INC. STATEMENTS OF
OPERATIONS |
|
|
Years Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
(in thousands, except shareand per share
amounts) |
|
Costs and expenses: |
|
|
|
|
|
General and administrative |
$ |
6,283 |
|
|
$ |
5,847 |
|
Research and development |
|
1,013 |
|
|
|
4,749 |
|
Total costs and expenses |
|
7,296 |
|
|
|
10,596 |
|
Loss from operations |
|
(7,296 |
) |
|
|
(10,596 |
) |
|
|
|
|
|
|
Interest and other income |
|
1,957 |
|
|
|
675 |
|
Other loss |
|
— |
|
|
|
(5 |
) |
Net loss |
$ |
(5,339 |
) |
|
$ |
(9,926 |
) |
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
Basic and diluted |
$ |
(0.37 |
) |
|
$ |
(0.69 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
Basic and diluted |
|
14,415,877 |
|
|
|
14,410,143 |
|
|
|
|
|
|
|
|
|
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