Denali Therapeutics Reports Second Quarter 2018 Financial Results
August 09 2018 - 4:30PM
Denali Therapeutics Inc. (NASDAQ:DNLI), a biopharmaceutical company
developing a broad portfolio of product candidates for
neurodegenerative diseases, today reported financial results for
the second quarter ended June 30, 2018.
Second Quarter 2018 Financial Results
For the three months ended June 30, 2018, Denali reported a net
loss of $54.7 million compared with a net loss of $22.1 million for
the three months ended June 30, 2017.
Collaboration revenue was $1.6 million for the three
months ended June 30, 2018, with no collaboration revenue
recognized for the three months ended June 30, 2017. The
increase was due to revenue recognized under the Option and
Collaboration Agreement with Takeda Pharmaceutical Company Limited,
which was entered into in January 2018.
Total research and development expenses were $52.1 million for
the three months ended June 30, 2018, including non-cash
stock-based compensation of $2.6 million, compared to $19.0 million
for the three months ended June 30, 2017, including non-cash
stock-based compensation $0.7 million. The increase in total
research and development expenses of $33.1 million was primarily
attributable to a $26.7 million increase in BBB platform external
expenses, the majority of which related to expense associated with
the acquisition of F-star Gamma Limited and the nomination of two
additional Fcab targets under the F-star Collaboration Agreement.
Additionally, there was an increase in personnel related expenses
including stock-based compensation driven by increased headcount
and options granted at higher valuations subsequent to the IPO, as
well as an increase in lab consumable costs and facilities related
expenses.
General and administrative expenses were $6.9 million for the
three months ended June 30, 2018, including non-cash stock-based
compensation of $2.1 million, compared to $3.6 million for the
three months ended June 30, 2017, including non-cash stock-based
compensation of $0.4 million. The increase in total general and
administrative expenses of $3.3 million was primarily attributable
to an increase in personnel related expenses, including stock-based
compensation, and an increase in legal and professional service
expenses. The increases were primarily attributable to an increase
in general and administrative headcount and options granted at
higher valuations subsequent to the IPO, as well as the increased
professional services required to support Denali's ongoing
operations as a public company.
Cash, cash equivalents, and marketable securities were $551.3
million as of June 30, 2018, compared to $467.0 million as of
December 31, 2017. The increase of $84.3 million was
primarily attributable to $155.0 million in cash received
related to the Option and the Collaboration Agreement and Stock
Purchase Agreement with Takeda, both entered into in January 2018,
offset by operating and investing cash payments.
About Denali Therapeutics
Denali is a biopharmaceutical company developing a broad
portfolio of product candidates for neurodegenerative diseases.
Denali pursues new treatments by rigorously assessing genetically
validated targets, engineering delivery across the blood-brain
barrier and guiding development with biomarker monitoring to
demonstrate target engagement and select patients. Denali is based
in South San Francisco. For additional information, please visit
www.denalitherapeutics.com.
|
Denali Therapeutics Inc.Condensed
Consolidated Statements of
Operations(Unaudited)(In thousands,
except share and per share amounts) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Collaboration
revenue |
$ |
1,648 |
|
|
$ |
— |
|
|
$ |
2,289 |
|
|
$ |
— |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research
and development |
52,134 |
|
|
19,004 |
|
|
72,953 |
|
|
37,474 |
|
General
and administrative |
6,896 |
|
|
3,564 |
|
|
12,466 |
|
|
6,838 |
|
Total
operating expenses |
59,030 |
|
|
22,568 |
|
|
85,419 |
|
|
44,312 |
|
Loss from
operations |
(57,382 |
) |
|
(22,568 |
) |
|
(83,130 |
) |
|
(44,312 |
) |
Interest and other
income, net |
2,658 |
|
|
434 |
|
|
4,728 |
|
|
858 |
|
Net loss |
$ |
(54,724 |
) |
|
$ |
(22,134 |
) |
|
$ |
(78,402 |
) |
|
$ |
(43,454 |
) |
Net loss per share,
basic and diluted |
$ |
(0.59 |
) |
|
$ |
(2.29 |
) |
|
$ |
(0.86 |
) |
|
$ |
(4.65 |
) |
Weighted average number
of shares outstanding, basic and diluted |
92,899,524 |
|
|
9,670,449 |
|
|
91,239,274 |
|
|
9,346,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Denali Therapeutics Inc.Condensed Consolidated
Balance Sheet Data(Unaudited)(In thousands) |
|
June 30, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
33,088 |
|
|
$ |
218,375 |
|
Short-term marketable securities |
339,503 |
|
|
187,851 |
|
Prepaid
expenses and other current assets |
4,827 |
|
|
3,381 |
|
Total
current assets |
377,418 |
|
|
409,607 |
|
Long-term marketable
securities |
178,703 |
|
|
60,750 |
|
Property and equipment,
net |
13,323 |
|
|
14,923 |
|
Other non-current
assets |
2,611 |
|
|
1,441 |
|
Total assets |
$ |
572,055 |
|
|
$ |
486,721 |
|
Liabilities and
stockholders' equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
9,176 |
|
|
$ |
2,716 |
|
Accrued
liabilities |
5,537 |
|
|
5,364 |
|
Accrued
compensation |
2,751 |
|
|
5,166 |
|
Contract
liability |
8,715 |
|
|
— |
|
Deferred
rent |
4,782 |
|
|
855 |
|
Other
current liabilities |
47 |
|
|
63 |
|
Total
current liabilities |
31,008 |
|
|
14,164 |
|
Contract liability,
less current portion |
49,590 |
|
|
— |
|
Deferred rent, less
current portion |
1,029 |
|
|
6,294 |
|
Other non-current
liabilities |
156 |
|
|
467 |
|
Total liabilities |
81,783 |
|
|
20,925 |
|
Total stockholders'
equity |
490,272 |
|
|
465,796 |
|
Total liabilities and
stockholders’ equity |
$ |
572,055 |
|
|
$ |
486,721 |
|
|
|
|
|
|
|
|
|
Contacts:
Morgan Warners (202)
337-0808 mwarners@gpg.com
OR
Lizzie Hyland (646)
495-2706 lhyland@gpg.com
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