Entasis Therapeutics Reports Second Quarter 2020 Financial Results and Business Update
WALTHAM, Mass., Aug. 06, 2020 (GLOBE NEWSWIRE) -- Entasis Therapeutics Holdings Inc. (NASDAQ: ETTX), a clinical-stage biopharmaceutical company focused on the discovery and development of novel antibacterial products, announced today its second quarter 2020 financial results and provided a business update.
“I’m pleased to report substantial progress across a number of areas of the Company in the second quarter of 2020 despite significant adjustments to adapt our clinical trial operations to the COVID-19 pandemic restrictions,” commented Manos Perros, President and Chief Executive Officer of Entasis Therapeutics. “First, our two ongoing Phase 3 registration trials addressing carbapenem-resistant Acinetobacter infections and uncomplicated gonorrhea due to Neisseria gonorrhea, two “CDC urgent threats,” continue to make progress in enrolling patients. Each trial, however, has been impacted by the COVID-19 pandemic as it disrupts healthcare facilities and practitioners around the world. As a result of the unpredictability of these disruptions, at this time we cannot provide specific guidance when each trial will be completed.”
“Second, we have strengthened our balance sheet by completing the closing of the $35 million common stock and warrant investment from Innoviva, Inc., which strategically positions us to fund the ATTACK Phase 3 registration trial and advance our pipeline. Third, we secured two non-dilutive funding awards to support our pipeline of novel antibacterial programs. We are pleased to continue our relationship with CARB-X, which, in June, exercised a new option award under our existing arrangement that will support development of ETX0462 to Phase 1-ready status. ETX0462 is being developed to potentially address multidrug-resistant Pseudomonas infections. Additionally, we have been awarded a contract from the National Institute of Allergy and Infectious Diseases (NIAID) that included an initial amount of approximately $3 million and the potential to receive up to $15.5 million. We believe this contract further validates the potential of our NBP platform to yield novel molecules with expanded Gram-negative spectrum against antibiotic-resistant bacterial pathogens. Finally, seven articles were published across our clinical programs SUL-DUR, zoliflodacin, and ETX0282CPDP, including a zoliflodacin article that was chosen as the Editors’ Choice in the May 12, 2020 edition of ACS Infectious Disease. Taken together, these accomplishments provide us with momentum to continue executing on our business objectives in the second half of 2020.”
Second Quarter 2020 and Recent Highlights
Second Quarter 2020 Financial Results
The Company reported a net loss of $13.4 million for the quarter ended June 30, 2020, which is consistent with a net loss of $13.4 million for the quarter ended June 30, 2019.
Research and development expenses were $10.2 million for the quarter ended June 30, 2020, compared to $10.7 million for the quarter ended June 30, 2019. The decrease of $0.5 million was primarily due to decreases in spending related to our SUL-DUR product candidate and were partially offset by an increase in personnel expenses associated with higher headcount, salaries and stock-based compensation expense.
General and administrative expenses were $3.2 million for the quarter ended June 30, 2020, compared to $3.4 million for the quarter ended June 30, 2019. The decrease of $0.2 million was driven primarily by a decrease in legal and consulting expenses and were partially offset by an increase in personnel expenses associated with higher headcount.
As of June 30, 2020, cash, cash equivalents and short-term investments were $50.8 million, compared to $27.5 million as of March 31, 2020 . In April, the Company also entered into an agreement with Innoviva Inc. for the private placement of $35 million. Based on our current operating plan, we believe that our existing cash, cash equivalents and short-term investments will be sufficient to fund our operating expenses and capital expenditure requirements into the second quarter of 2021.
Entasis Forward-looking Statements
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