Mirna Therapeutics, Inc. (Nasdaq:MIRN), a biopharmaceutical
company, today reported financial results for the first quarter of
2017 and provided a corporate update.
Following its late 2016 discontinuation of all research and
development activities, the Company engaged a financial advisor and
has been pursuing activities to evaluate strategic alternatives,
including a possible merger or sale of the Company. Further
operating cost and workforce reductions were also implemented to
reduce overall cash burn.
“We are committed to serving our shareholders’ best interests
and are continuing our strategic discussions with third parties in
an effort to consummate a transaction,” said President and CEO Paul
Lammers, M.D., M.Sc.
FIRST QUARTER 2017 FINANCIAL RESULTS
- Cash Position and Guidance:
Cash, cash equivalents, and marketable securities totaled $57.5
million as of March 31, 2017, compared to $60.5 million as of
December 31, 2016. The Company has no debt.The Company expects its
quarterly cash burn rate to range from $1.5 million to $2.0
million. This quarterly guidance includes contractual commitments
and obligations, but excludes any one-time charges related to any
strategic transaction should such be consummated, and contractual
payments for executive severance and change-in-control
provisions.
- Research and development
expenses: Research and development expenses were approximately
$0.2 million for the three months ended March 31,
2017, compared to research and development expenses of $4.5
million during the comparable period in 2016. The decrease was
primarily due to the discontinuation of the Company's research and
development activities, including the development of MRX34 and our
microRNA pipeline, and a corresponding reduction in force, both of
which were initiated in November 2016.
- General and administrative
expenses: General and administrative expenses were
approximately $2.3 million for the three months ended
March 31, 2017, compared to general and administrative
expenses of $2.1 million during the comparable period in 2016. The
increase for the three months ended March 31, 2017 was primarily
due to approximately $0.5 million in legal fees for transaction
costs related to the Company's evaluation of strategic
alternatives. This increase was largely offset by a decline in
personnel and operating expenses following the reduction in force
initiated in November 2016 to reduce costs and streamline
operations while the Company evaluates strategic alternatives.
- Restructuring charges:
Restructuring charges were approximately $2.6 million for the three
months ended March 31, 2017, and $0 for the three months ended
March 31, 2016. The Company and its landlord agreed to terminate
the Company's lease of approximately 23,578 square feet of office
and laboratory space for consideration of $3.8 million. As a result
of the contingent settlement, the Company recognized incremental
contract termination costs based on the contractual settlement
amount of approximately $2.3 million, which were recorded in
restructuring charges during the three months ended March 31,
2017.
- Net Loss: Net loss was
approximately $5.0 million for the three months ended March 31,
2017, compared to a net loss of $6.6 million for the comparable
period in 2016. The results included non-cash, stock-based related
compensation charges of $364,000 and $447,000 for the three months
ended March 31, 2017 and March 31, 2016, respectively.
About Mirna Therapeutics, Inc.
Mirna is a biopharmaceutical company that has been focused on
the development of microRNA-based oncology therapeutics. Mirna's
first product candidate, MRX34, the first microRNA mimic to enter
clinical development in oncology, was studied as a single agent in
a multicenter Phase 1 clinical trial. In September 2016, Mirna
voluntarily halted enrollment and dosing in the clinical study
following multiple immune-related serious adverse events (SAEs)
observed in patients dosed with MRX34 over the course of the trial.
Subsequently, the U.S. Food and Drug Administration (FDA) notified
the Company that the Investigational New Drug (IND) Application for
MRX34 was placed on full clinical hold. The Company has since
closed the IND and is currently evaluating strategic alternatives,
including the possibility of a merger or sale of the Company.
Forward-Looking Statements
To the extent that statements contained in this press release
are not descriptions of historical facts regarding Mirna, they are
forward-looking statements reflecting the current beliefs and
expectations of management made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including statements regarding the evaluation of strategic
alternatives and our expectations regarding our quarterly cash burn
rate. Such forward-looking statements involve substantial risks and
uncertainties that could cause our future results, performance or
achievements to differ significantly from those expressed or
implied by the forward-looking statements. We undertake no
obligation to update or revise any forward-looking statements. For
a further description of the risks and uncertainties that could
cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to our
business in general, see our Quarterly Report on Form 10-Q filed
with the U.S. Securities and Exchange Commission (SEC) on May 9,
2017.
Mirna Therapeutics,
Inc.Condensed Balance Sheets(in thousands, except
share data)
March 31, December 31,
2017 2016 Assets (unaudited) Current Assets:
Cash and cash equivalents $ 17,121 $ 16,432 Short-term marketable
securities 40,408 44,066 Prepaid expenses and other current assets
620 882 Total current assets 58,149 61,380 Property
and equipment, net 26 354 Restricted cash 2,433 2,432
Total assets $ 60,608 $ 64,166
Liabilities and
Stockholders’ Equity (Deficit) Current Liabilities: Accounts
payable $ 371 $ 361 Accrued expenses 4,486 2,400
Total current liabilities 4,857 2,761 Lease obligations, long-term
— 1,053 Total liabilities 4,857 3,814
Stockholders’ Equity (Deficit):
Common stock, $0.001 par value;
250,000,000 shares authorizedat March 31, 2017 and December 31,
2016; 20,856,693 and20,841,393 shares issued and outstanding at
March 31, 2017 andDecember 31, 2016, respectively
21 21 Additional paid in capital 163,518 163,126 Accumulated
deficit (107,771 ) (102,791 ) Other comprehensive loss (17 ) (4 )
Total stockholders’ equity 55,751 60,352 Total
liabilities and stockholders’ equity $ 60,608 $ 64,166
Mirna Therapeutics,
Inc.Condensed Statement of Operations and Comprehensive Loss
(unaudited)(in thousands)
Three Months EndedMarch
31,
2017 2016 Operating expenses: Research and
development $ 242 $ 4,523 General and administrative 2,264 2,130
Restructuring charges 2,557 — Total operating
expenses 5,063 6,653 Other income: Interest income 86 82
Net loss attributable to common stockholders $ (4,977 ) $
(6,571 )
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version on businesswire.com: http://www.businesswire.com/news/home/20170509006790/en/
InvestorsMirna Therapeutics, Inc.Alan Fuhrman,
512-901-0950afuhrman@mirnarx.comorMediaBMC
CommunicationsBrad Miles,
646-513-3125bmiles@bmccommunications.com
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