Full Press Release Details
Aldeyra Therapeutics Announces Second-Quarter 2020 Financial
Results and Provides Corporate Update
LEXINGTON, Mass., August 6, 2020 Aldeyra Therapeutics, Inc. (Nasdaq: ALDX) (Aldeyra), a clinical-stage biotechnology company
focused on the development of novel therapies with the potential to improve the lives of patients with immune-mediated diseases, today announced financial results for the second quarter of 2020 and provided a corporate update.
We continue to make important progress in advancing a number of clinical-stage programs focused on the development of reproxalap and ADX-629, our first-in-class reactive aldehyde species (RASP) inhibitors, stated Todd C. Brady, M.D., Ph.D., President and CEO of
Aldeyra. Following a successful meeting with the US Food and Drug Administration (FDA) in June, we are on track to initiate clinical trials assessing levels of RASP, a pro-inflammatory mediator, in the
tears of patients with dry eye disease. Clinical development of ADX-629, an orally available RASP inhibitor, in COVID-19, psoriasis, and atopic asthma is expected to
begin during the second half of this year.
We also have enhanced our financial flexibility with recent common stock sales to Perceptive
Advisors and Avidity Partners, transactions that generated gross proceeds of approximately $19.5 million and completed our previously announced at-the-market
offering program, Dr. Brady continued. We now expect to be able to fund operations through 2022, including potential approvals for reproxalap in dry eye disease and allergic conjunctivitis.
Clinical-Stage Pipeline Updates
Financial Results for the Quarter Ended June 30,
For the quarter ended June 30, 2020, Aldeyra reported a net loss of $7.5 million, compared with a net loss of $13.3 million for
the quarter ended June 30, 2019. Net loss per share was $0.25 for the quarter ended June 30, 2020, compared with $0.49 for the same period in 2019. Losses have resulted from the costs of Aldeyra s clinical trials and research and
development programs, as well as from general and administrative expenses.
Research and development expenses were $4.9 million for the quarter ended
June 30, 2020, compared with $10.7 million for the same period in 2019. The decrease of $5.8 million is primarily related to the decreases in clinical and preclinical development, manufacturing, and personnel costs.
General and administrative expenses were $2.2 million for the quarter ended June 30, 2020, compared with $3.1 million for the same period in
2019. The decrease of $0.9 million is due to decreases in personnel related costs, including stock-based compensation, and other miscellaneous administrative costs.
For the quarter ended June 30, 2020, total operating expenses were $7.1 million, compared with
total operating expenses of $13.7 million for the same period in 2019.
As of June 30, 2020, cash, cash equivalents, and marketable securities
were $66.2 million. Subsequent to June 30, 2020, $25.2 million in cash was received from at-the-market offering program sales to Perceptive Advisors,
Avidity Partners, and other investors. Based on current operating plans, cash, cash equivalents, and marketable securities as of June 30, 2020, plus the additional
at-the-market offering program proceeds, are expected to be sufficient to fund operations through the end of 2022, including potential NDA approvals for reproxalap in
dry eye disease and allergic conjunctivitis, assuming positive clinical trial results, and planned NDA submissions, acceptances, and approvals. Use of Aldeyra s cash, cash equivalents, and marketable securities are also expected to include the
continuation of Part 1 of the Phase 3 GUARD Trial in PVR, and Phase 2 clinical testing of ADX-629, an orally administered RASP inhibitor, in inflammatory diseases.
Conference Call & Webcast Information
will host a conference call today at 8:00 a.m. ET to discuss its second-quarter 2020 financial results. The dial-in numbers are (866) 211-4098 for domestic callers and
(647) 689-6613 for international callers. The Conference ID number is 9297174. Due to the expected high demand on our conference provider, please plan to dial in to the call at least 15 minutes prior to the
A live webcast of the conference call will also be available on the investor relations page of the company s corporate website at
https://ir.aldeyra.com. After the live webcast, the event will remain archived on the Aldeyra Therapeutics website for 90 days.
About Aldeyra Therapeutics
Aldeyra Therapeutics is a clinical-stage biotechnology company focused on the development of novel therapies with the potential to improve the lives of
patients with immune-mediated diseases. Two of the company s lead compounds, reproxalap and ADX-629, target reactive aldehyde species (RASP), which are elevated in ocular and systemic inflammatory disease
and result in cytokine release via activation of a broad array of inflammatory factors, including NF-KB, inflammasomes, and Scavenger Receptor A. Reproxalap is being evaluated in Phase 3
clinical trials in patients with dry eye disease and allergic conjunctivitis. The company s clinical pipeline also includes ADX-2191, a dihydrofolate reductase inhibitor in Phase 3 testing for
proliferative vitreoretinopathy, and ADX-1612, a chaperome inhibitor in Phase 2 testing for COVID-19 and ovarian cancer. For more information, visit
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding
Aldeyra s strategy, future operations, expected cash runway, prospects, plans, and objectives and Aldeyra s plans and expectations for its product candidates, including reproxalap, ADX-629, ADX-2191, and ADX-1612. Aldeyra intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in
Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, may, might,
will, objective, intend, should, could, can, would, expect, believe, anticipate, project, on track,
scheduled, target, design, estimate, predict, potential, aim, plan or the negative of these terms, and similar expressions intended to identify
forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions and uncertainties. Aldeyra is at an early stage of development and may not ever have any
products that generate significant revenue. All of Aldeyra s development timelines may be subject to adjustment depending on recruitment rate, regulatory review, preclinical and clinical results, and other factors that could delay the
initiation or completion of clinical trials.
As a result of the COVID-19 pandemic, clinical site availability,
staffing, and patient recruitment have been negatively affected and the timelines to complete our clinical trials may be delayed. Important factors that could cause actual results to differ materially from those reflected in Aldeyra s
forward-looking statements include, among others, the timing of enrollment, commencement and completion of Aldeyra s clinical trials, the timing and success of preclinical studies and clinical trials conducted by Aldeyra and its development
partners; updated or refined data based on Aldeyra s continuing review and quality control analysis of clinical data, Aldeyra s ability to design clinical trials with protocols and endpoints acceptable to applicable regulatory authorities;
delay in or failure to obtain regulatory approval of Aldeyra s product candidates; the ability to maintain regulatory approval of Aldeyra s product candidates, and the labeling for any approved products; the risk that prior results, such
as signals of safety, activity or durability of effect, observed from preclinical or clinical trials, will not be replicated or will not continue in ongoing or future studies or trials involving Aldeyra s product candidates; the scope,
progress, expansion, and costs of developing and commercializing Aldeyra s product candidates; the current and potential future impact of the COVID-19 pandemic on our business, results of operations and
financial position; uncertainty as to Aldeyra s ability to commercialize (alone or with others) Aldeyra s product candidates following regulatory approval, if any; the size and growth of the potential markets and pricing for Aldeyra s
product candidates and the ability to serve those markets; Aldeyra s expectations regarding Aldeyra s expenses and revenue, the sufficiency or use of Aldeyra s cash resources and needs for additional financing; political, economic,
legal, social and health risks, including the recent COVID-19 outbreak and subsequent public health measures, that may affect Aldeyra s business or the global economy; the rate and degree of market
acceptance of any of Aldeyra s product candidates; Aldeyra s expectations regarding competition; Aldeyra s anticipated growth strategies; Aldeyra s ability to attract or retain key personnel; Aldeyra s limited sales and
marketing infrastructure; Aldeyra s ability to establish and maintain development partnerships; Aldeyra s ability to successfully integrate acquisitions into its business; Aldeyra s expectations regarding federal, state and foreign
regulatory requirements; regulatory developments in the United States and foreign countries; Aldeyra s ability to obtain and maintain intellectual property protection for its product candidates; the anticipated trends and challenges in
Aldeyra s business and the market in which it operates; and other factors that are described in the Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations sections of
Aldeyra s Annual Report on Form 10-K for the year ended December 31, 2019 and Aldeyra s Quarterly Report on Form 10-Q for the quarter ended March 31,
2020, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC s website at www.sec.gov. Additional factors may be set forth in those sections of Aldeyra s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, expected to be filed with the SEC in the third quarter of 2020.
In addition to the risks described above and in Aldeyra s other filings with the SEC, other unknown or
unpredictable factors also could affect Aldeyra s results. No forward-looking statements can be guaranteed, and actual results may differ materially from such statements. The information in this release is provided only as of the date of this
release, and Aldeyra undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
| Corporate Contact: | Investor & Media Contact: | |
| David McMullin | Scott Solomon | |
| Aldeyra Therapeutics, Inc. | Sharon Merrill Associates, Inc. | |
| Tel: 781-761-4904 ext. 218 | Tel: 617-542-5300 | |
| dmcmullin@aldeyra.com | ALDX@investorrelations.com |
ALDEYRA THERAPEUTICS, INC.
CONSOLIDATED BALANCE SHEETS
| June 30, 2020 | December 31, 2019 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 50,688,834 | $ | 16,425,830 | ||||
| Cash equivalent - reverse repurchase agreements | 10,000,000 | $ | 28,000,000 | |||||
| Marketable securities | 5,500,975 | 28,938,545 | ||||||
| Prepaid expenses and other current assets | 5,232,717 | 1,804,450 | ||||||
| Total current assets | 71,422,526 | 75,168,825 | ||||||
| Right-of-use assets | 103,074 | 201,007 | ||||||
| Fixed assets, net | 101,695 | 148,449 | ||||||
| Total assets | $ | 71,627,295 | $ | 75,518,281 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 216,689 | $ | 808,302 | ||||
| Accrued expenses | 3,693,594 | 11,873,122 | ||||||
| Current portion of credit facility | 894,042 | |||||||
| Current portion of operating lease liabilities | 116,124 | 226,328 | ||||||
| Total current liabilities | 4,920,449 | 12,907,752 | ||||||
| Long-term debt | 13,917,180 | 14,528,212 | ||||||
| Total liabilities | 18,837,629 | 27,435,964 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders equity: | ||||||||
| Common stock, voting, $0.001 par value; 150,000,000 authorized and 32,997,346 and 28,656,832 shares issued and outstanding, respectively | 32,997 | 28,657 | ||||||
| Additional paid-in capital | 269,502,290 | 247,409,793 | ||||||
| Accumulated other comprehensive income | 4,754 | 5,866 | ||||||
| Accumulated deficit | (216,750,375 | ) | (199,361,999 | ) | ||||
| Total stockholders equity | 52,789,666 | 48,082,317 | ||||||
| Total liabilities and stockholders equity | $ | 71,627,295 | $ | 75,518,281 |
ALDEYRA THERAPEUTICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 4,885,875 | $ | 10,664,858 | $ | 11,519,478 | $ | 18,513,448 | ||||||||
| Acquired in-process research and development | (49,848 | ) | 6,547,703 | |||||||||||||
| General and administrative | 2,220,003 | 3,116,414 | 5,224,844 | 6,101,452 | ||||||||||||
| Loss from operations | (7,105,878 | ) | (13,731,424 | ) | (16,744,322 | ) | (31,162,603 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 71,710 | 432,908 | 281,809 | 932,049 | ||||||||||||
| Interest expense | (486,048 | ) | (28,649 | ) | (925,863 | ) | (30,612 | ) | ||||||||
| Total other income (expense), net | (414,338 | ) | 404,259 | (644,054 | ) | 901,437 | ||||||||||
| Loss before income taxes | (7,520,216 | ) | (13,327,165 | ) | (17,388,376 | ) | (30,261,166 | ) | ||||||||
| Income tax benefit | 1,309,973 | |||||||||||||||
| Net loss | $ | (7,520,216 | ) | $ | (13,327,165 | ) | $ | (17,388,376 | ) | $ | (28,951,193 | ) | ||||
| Net loss per share - basic and diluted | $ | (0.25 | ) | $ | (0.49 | ) | $ | (0.59 | ) | $ | (1.08 | ) | ||||
| Weighted average common shares outstanding - basic and diluted | 30,118,456 | 26,985,454 | 29,586,148 | 26,836,292 |