Crinetics Pharmaceuticals Reports Second Quarter 2018 Financial Results and Provides Corporate Update
“Crinetics has made major progress in 2018 with the company’s initial public offering, which raised net proceeds of
Second Quarter 2018 and Subsequent Highlights
- Completed initial public offering. In
July 2018, Crinetics closed its initial public offering of 6,900,000 shares of common stock at a public offering price of $17.00per share. Crinetics received approximately $106.4 millionin net proceeds, after deducting underwriting discounts, commissions, and estimated offering expenses.
- Awarded up to
$3.2 millionin SBIR grants for congenital hyperinsulinism and acromegaly. In June 2018, Crinetics was awarded up to approximately $3.2 millionin Small Business Innovation Research(SBIR) grants from the National Institute of Diabetes and Digestiveand Kidney Diseases of the National Institutes of Health(NIH) to fund the continued research and development of its nonpeptide, oral somatostatin agonists for congenital hyperinsulinemias (CHI) and acromegaly. Crinetics will be eligible to receive funding for up to approximately $1.9 millionfor CHI and $1.3 millionfor acromegaly.
Alan S. Krasner, M.D. as Chief Medical Officer. In June 2018, Crinetics appointed Alan S. Krasner, M.D. as Chief Medical Officer. Dr. Krasner joined Crinetics from Shire Pharmaceuticalswhere he was a Senior Medical Director and served as Global Development Lead for Natpara®, the first recombinant human intact parathyroid hormone treatment for hypoparathyroidism. Prior to Shire, he worked at Biodel and Pfizer conducting clinical research at various stages of product development in diabetes and obesity.
Second Quarter 2018 Financial Results
- Research and development expenses were
$5.2 millionand $9.9 millionfor the three and six months ended June 30, 2018, respectively, compared to $2.1 millionand $4.1 millionfor the same periods in 2017. The increases were primarily attributable to increased manufacturing and development activities associated with clinical and preclinical programs and increased personnel-related costs due to the hiring of additional development personnel.
- General and administrative expenses were
$1.1 millionand $2.4 millionfor the three and six months ended June 30, 2018, compared to $0.4 millionand $1.0 millionfor the same periods in 2017. The increases were primarily due to increased spending on pre-commercialization activities and legal costs, as well as higher personnel-related costs to support the growth of operating activities.
- Net loss for the three months ended
June 30, 2018was $5.6 million, compared to a net loss of $1.6 millionfor the three months ended June 30, 2017. For the six months ended June 30, 2018, the company’s net loss was $11.0 millioncompared to a net loss of $4.3 millionfor the six months ended June 30, 2017.
- Cash, cash equivalents and short-term investments totaled
$68.4 millionas of June 30, 2018, which does not include the $106.4 millionin net proceeds from the initial public offering in July 2018, compared with $14.2 millionas of December 31, 2017.
- As of
August 24, 2018, the company had 24,024,231 common shares outstanding.
Crinetics cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding growing the company’s operations, the anticipated timing to commence Phase 2 clinical trials for CRN00808 and plans to develop its other programs in hyperinsulinemia, neuroendocrine tumors and Cushing’s disease. The inclusion of forward-looking statements should not be regarded as a representation by Crinetics that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Crinetics’ business, including, without limitation: potential delays in the commencement, enrollment and completion of clinical trials; the company’s dependence on third parties in connection with product manufacturing, research and preclinical and clinical testing; the success of Crinetics’ clinical trials and preclinical studies for CRN00808 and its other product candidates; regulatory developments in
Chief Financial Officer
|CRINETICS PHARMACEUTICALS, INC.|
|CONDENSED CONSOLIDATED FINANCIAL STATEMENT DATA|
|Three months ended June 30,||Six months ended June 30,|
|(in 000s, except per share data)||2018||2017||2018||2017|
|Consolidated Statements of Operations Data:|
|Research and development||5,222||2,083||9,942||4,148|
|General and administrative||1,118||392||2,366||981|
|Total operating expenses||6,340||2,475||12,308||5,129|
|Loss from operations||(5,683||)||(1,643||)||(11,209||)||(4,252||)|
|Total other income (expense), net||115||(5||)||177||(2||)|
|Net loss per share - basic and diluted||$||(2.41||)||$||(1.22||)||$||(5.28||)||$||(3.34||)|
|Weighted average shares - basic and diluted||2,307||1,348||2,089||1,273|
|June 30,||December 31,|
|Consolidated Balance Sheet Data:|
|Cash and cash equivalents||$||68,408||$||14,192|
|Convertible preferred stock||$||92,975||$||29,700|
|Total stockholders’ equity (deficit)||$||(25,177||)||$||(15,022||)|
Source: Crinetics Pharmaceuticals, Inc.