Cocrystal Pharma Reports Third Quarter 2019 Financial Results and Provides Corporate Update
– Following new positive data from Phase 2a study, Company outlines next steps in clinical development plan for lead program CC-31244 for ultrashort treatment of hepatitis C (HepC) –
– Preclinical influenza A/B program fully-funded by development and commercialization partner, Merck Sharp & Dohme Corp. (Merck) advancing with lead molecule selection expected in Q4 2020 –
BOTHELL, WA, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Cocrystal Pharma, Inc. (NASDAQ: COCP), (“Cocrystal” or the “Company”), a clinical stage biotechnology company discovering and developing novel antiviral therapeutics, announced today its financial results for the quarter ended September 30, 2019 and provided a corporate update.
“2019 has been an active and very productive year for the Company. We continue to drive our clinical and research programs forward and believe we now have established a clear development pathway for our lead program CC-31244 for the ultrashort treatment of HepC,” commented Dr. Gary Wilcox, Chairman and Chief Executive Officer of Cocrystal. “Over the past nine months, we have worked closely with the Merck team advancing the influenza A/B antiviral agents and have had monthly and quarterly collaborative discussions that are guiding the next phase of this important program. We are very encouraged by the scientific developments made to-date and expect the lead influenza A/B molecule to be selected in the fourth quarter of next year.”
“On the corporate side, we expect to close the year with a strong financial position, having secured enough cash runway to fund operations through 2020. Additionally, we remain opportunistic as we advance our ongoing business development discussions with the goal of securing additional strategic partnerships across our pipeline in order to infuse non-dilutive capital into the Company, as witnessed by our Merck transaction. As we move into 2020, we believe the Company is well positioned to successfully achieve the corporate and clinical milestones in front of us,” added Dr. Wilcox.
Influenza A/B Inhibitors: Exclusive license and collaboration agreement with Merck to discover and develop certain proprietary influenza A/B antiviral agents.
Upcoming Influenza A/B Program Milestones
CC-42344 Influenza Program: Novel, broad spectrum influenza antivirals that are specifically designed to be effective against all significant A strains of the influenza virus and to have a high barrier to resistance due to the way they target the virus’ replication machinery.
Upcoming CC-42344 Program Milestones
CC-31244 HepC Clinical Program: Pan-Genotypic Non-Nucleoside Inhibitor for Ultrashort Treatment
Upcoming CC-31244 Clinical Program Milestones:
For additional information about the U.S. Phase 2a study of CC-31244 for the treatment of viral hepatitis C, please visit ClinicalTrials.gov and reference identifier NCT03501550.
Summary of Financial Results for the Quarter Ended September 30, 2019
As of September 30, 2019, the Company had approximately $6,044,000 cash on hand. On November 4, 2019, the Company closed a public offering and received gross proceeds of approximately $3.0 million and net proceeds of $2.6 million. Based on management’s current projections, the Company expects to have sufficient cash to fund operations through the end of 2020.
The Company recorded revenue for the three and nine months ended September 30, 2019 of $492,000 and $6,162,000, respectively, compared to no revenue during the same periods ended September 30, 2018. Revenue resulted from the Merck Collaboration during the three months ended September 30, 2019 and consisted of program services and expense reimbursements received for research and development costs associated with the Company’s influenza A/B program in accordance with the Merck Collaboration Agreement, and for the nine months ended September 30, 2019 of program services, expense reimbursements and an initial license payment.
Total research and development expenses for the three and nine months ended September 30, 2019 were approximately $1,077,000 and $3,046,000, respectively, compared with approximately $1,467,000 and $3,464,000 for the three and nine months ended September 30, 2018, respectively.
General and administrative expenses for the three and nine months ended September 30, 2019 were approximately $1,223,000 and $3,597,000, respectively, compared with $952,000 and $3,157,000 for the three and nine months ended September 30, 2018, respectively.
The Company reported net loss for the three and nine months ended September 30, 2019 of approximately $1,780,000 and $324,000, respectively, compared with a net loss of approximately $1,868,000 and $4,762,000 for the three and nine months ended September 30, 2018, respectively.
About Cocrystal Pharma, Inc.
Cocrystal Pharma, Inc. is a clinical stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication machinery of influenza viruses, hepatitis C viruses, and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including anticipated advancements under our collaboration agreement with Merck, achievement of expected near-term clinical and research milestones, including the selection of the lead influenza A/B molecule, the expected progress and timing of the influenza A IND-enabling studies, filing of a regulatory submission and Phase 1 study, the anticipated progress and timing of the HepC Phase 2a study in Hong Kong, expected advancement of discussions with potential strategic partners, and our liquidity. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events. Some or all of the events anticipated by these forward-looking statements may not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to, risks arising from our reliance on continuing collaboration with Merck under the collaboration agreement, the availability of products manufactured by third parties, the results of preclinical and clinical studies, the research organizations’ inability to recruit subjects and complete the studies timely or at all, including as the result of civil unrest and political instability in Hong Kong, general risks arising from clinical trials, receipt of regulatory approvals, our ability to find and enter into agreements with suitable collaboration partners, litigation expenses and other expenses and factors that affect the capital markets in general and early stage biotechnology companies specifically. Further information on our risk factors is contained in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2018, as updated and supplemented by the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
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COCRYSTAL PHARMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
COCRYSTAL PHARMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
See accompanying notes to condensed consolidated financial statements.