Full Press Release Details
Inc. Reports First Quarter 2022 Financial Results and Business Updates
| - | Entered into $100 Million Private Placement Agreement | |
| - | Finalized pivotal Phase 3 trial design for gedatolisib | |
| - | Received FDA Fast Track designation for gedatolisib in HR+/HER2- advanced breast cancer | |
| - | Management to host webcast and conference call today, May 16, 2022, at 4:30 p.m. ET |
May 16, 2022 - Celcuity Inc. (Nasdaq: CELC), a clinical-stage biotechnology company pursuing an integrated therapeutic and
companion diagnostic strategy for treating patients with cancer, today announced financial results for the first quarter ended March
31, 2022 and other recent business progress.
today, we entered into a definitive securities purchase agreement with a premier group of biopharmaceutical investors in a private placement
that is expected to result in aggregate gross proceeds to Celcuity of $100 million," said Brian Sullivan, CEO and Co-Founder of
Celcuity. "The expected proceeds will further support the clinical development of gedatolisib, including our planned Phase 3 clinical
study, VIKTORIA-1. We are very pleased to have attracted such a well-regarded group of investors in this very difficult equity capital
is an urgent unmet need for better therapeutic options for patients with HR+/HER2- metastatic breast cancer given the limited benefit
currently available targeted therapies provide. This financing transaction is a testament to gedatolisib's potential to address
this unmet need," Sullivan added.
Quarter 2022 Business Highlights and Other Recent Developments
| In March, the company announced the design for its pivotal Phase 3 trial for gedatolisib, an investigational pan-PI3K/mTOR inhibitor. The pivotal Phase 3 clinical trial, which is named VIKTORIA-1, will be an open-label, randomized study to evaluate the safety and efficacy of gedatolisib in combination with fulvestrant with or without palbociclib in adults with HR+/HER2- advanced breast cancer whose disease progressed while receiving prior CDK4/6 therapy. This multi-center, international trial is expected to enroll subjects at clinical sites across the U.S., Europe, and Asia. Celcuity expects to initiate the clinical trial in mid-2022. | |
| In January, the FDA granted Fast Track designation to Celcuity's lead drug candidate, gedatolisib, for the treatment of patients with HR+/HER2- metastatic breast cancer whose disease progressed while receiving a CDK4/6 inhibitor. | |
| Enrollment in the trials evaluating CELsignia selected patients was impacted by COVID-19 related delays during early 2022. Hospitalizations of patients with COVID-19 increased dramatically during this period which led hospitals to reduce clinical trial related activities. The first interim results from these studies are now expected to be available in the first half of 2023. |
Quarter 2022 Financial Results
otherwise stated, all comparisons are for the first quarter ended March 31, 2022, compared to the first quarter ended March 31, 2021.
operating expenses were $7.5 million for the first quarter of 2022, compared to $2.8 million for the first quarter of 2021. Net cash
used in operating activities for the first quarter of 2022 was $5.9 million, compared to $2.5 million for the first quarter of 2021.
Research and development (R&D) expenses were $6.7 million for the first quarter of 2022, compared to $2.2 million for the first quarter
of 2021. The approximately $4.5 million increase during the first quarter of 2022, compared to the first quarter of 2021, resulted primarily
from the development of gedatolisib. Employee related expenses, including consulting fees, accounted for $1.6 million of the $4.5 million
increase, including $0.2 million in non-cash stock-based compensation. The remaining increase of $2.9 million of the $4.5 million is
related to costs for existing clinical trials and for activities supporting the initiation of the VIKTORIA-1 pivotal trial.
and administrative (G&A) expenses were $0.8 million for the first quarter of 2022, compared to $0.6 million for the first quarter
of 2021. The approximately $0.2 million increase in G&A during the first quarter of 2022, compared to the first quarter of 2021,
arose primarily from employee related expenses, including approximately $0.1 million in non-cash stock-based compensation.
loss for the first quarter of 2022 was $7.9 million, or $0.53 per share, compared to a net loss of $2.8 million, or $0.25 per share for
2021. Non-GAAP adjusted net loss for the first quarter of 2022 was $7.0 million, or $0.47 per share, compared to non-GAAP adjusted net
loss of $2.3 million, or $0.21 per share, for the first quarter of 2021. Non-GAAP adjusted net loss excludes stock-based compensation
expense and non-cash interest. Because these items have no impact on Celcuity's cash position, management believes non-GAAP adjusted
net loss better enables Celcuity to focus on cash used in operations. For a reconciliation of financial measures calculated in accordance
with generally accepted accounting principles (GAAP) in the United States to non-GAAP financial measures, please see the financial tables
at the end of this news release.
March 31, 2022, Celcuity had cash and cash equivalents of $78.3 million, compared to cash and cash equivalents of $84.3 million at December
and Conference Call Information
Celcuity management team will host a webcast/conference call at 4:30 p.m. ET today to discuss the first quarter 2022 financial results
and provide a corporate update. To participate in the teleconference, domestic callers should dial (844) 825-9789 and international callers
should dial (412) 317-5180 and reference conference code 10166506. A live webcast presentation can also be accessed using this weblink:
https://viavid.webcasts.com/starthere.jsp?ei=1545538&tp_key=5a345444e1. A replay of the webcast will be available on the Celcuity
website following the live event.
is a clinical-stage biotechnology company seeking to extend the lives of cancer patients by pursuing an integrated therapeutic and companion
diagnostic strategy. The company's lead therapeutic candidate is gedatolisib, a potent, reversible dual inhibitor that selectively
targets all Class I isoforms of PI3K and mTOR. Its mechanism of action and pharmacokinetic properties are highly differentiated from
other currently approved and investigational therapies that target PI3K or mTOR alone or together. The company expects to initiate a
Phase 3 study evaluating gedatolisib in patients with HR+/HER2- advanced breast cancer in 2022. Its CELsignia companion diagnostic platform
is uniquely able to analyze live patient tumor cells to identify new groups of cancer patients likely to benefit from already approved
targeted therapies. Celcuity is headquartered in Minneapolis. Further information about Celcuity can be found at www.celcuity.com.
press release contains statements that constitute "forward-looking statements" that involve risks and uncertainties including,
but not limited to, the timing of initiating and enrolling patients in clinical trials and receiving results from such trials, including
without limitation, Celcuity's planned Phase 3 clinical trial (VIKTORIA-1), the costs and expected results from any ongoing or
planned clinical trials, expectations with respect to planned clinical collaborations, and the expected timing of funding for the private
placement. In some cases, you can identify forward-looking statements by terminology such as "may," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"potential," "intends" or "continue," and other similar expressions that are predictions of or indicate
future events and future trends, or the negative of these terms or other comparable terminology. Forward-looking statements are subject
to numerous conditions, many of which are beyond the control of Celcuity, which include, but are not limited to, the unknown impact of
the COVID-19 pandemic on Celcuity's business and those other risks set forth in the Risk Factors section in Celcuity's Annual
Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 23, 2022. Readers
are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Celcuity undertakes
no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.
Sullivan, bsullivan@celcuity.com
Hahne, vhahne@celcuity.com
Robert Uhl, robert.uhl@westwicke.com
| March 31, 2022 | December 31, 2021 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 78,295,426 | $ | 84,286,381 | ||||
| Deposits | 22,009 | 22,009 | ||||||
| Deferred transaction costs | 170,503 | 22,144 | ||||||
| Payroll tax receivable | 193,034 | 298,764 | ||||||
| Prepaid assets | 762,882 | 722,677 | ||||||
| Total current assets | 79,443,854 | 85,351,975 | ||||||
| Property and equipment, net | 291,076 | 312,444 | ||||||
| Operating lease right-of-use assets | 194,925 | 241,901 | ||||||
| Total Assets | $ | 79,929,855 | $ | 85,906,320 | ||||
| Liabilities and Stockholders' Equity: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,139,291 | $ | 1,507,099 | ||||
| Finance lease liabilities | 5,860 | 5,850 | ||||||
| Operating lease liabilities | 189,267 | 189,858 | ||||||
| Accrued expenses | 1,216,392 | 802,893 | ||||||
| Total current liabilities | 3,550,810 | 2,505,700 | ||||||
| Finance lease liabilities | 981 | 2,449 | ||||||
| Operating lease liabilities | 15,328 | 61,771 | ||||||
| Note payable, non-current | 14,823,021 | 14,625,923 | ||||||
| Total Liabilities | 18,390,140 | 17,195,843 | ||||||
| Stockholders' Equity: | ||||||||
| Members' equity contributions | - | - | ||||||
| Common stock | 14,920 | 14,919 | ||||||
| Additional paid-in capital | 125,386,089 | 124,622,405 | ||||||
| Accumulated deficit | (63,861,294 | ) | (55,926,847 | ) | ||||
| Total Stockholders' Equity | 61,539,715 | 68,710,477 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 79,929,855 | $ | 85,906,320 |
Condensed Statements of Operations
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Operating expenses: | ||||||||
| Research and development | $ | 6,696,313 | $ | 2,236,342 | ||||
| General and administrative | 811,292 | 555,428 | ||||||
| Total operating expenses | 7,507,605 | 2,791,770 | ||||||
| Loss from operations | (7,507,605 | ) | (2,791,770 | ) | ||||
| Other income (expense) | ||||||||
| Interest expense | (435,001 | ) | (24 | ) | ||||
| Interest income | 8,159 | 389 | ||||||
| Loss on sale of fixed assets | - | (263 | ) | |||||
| Other income (expense), net | (426,842 | ) | 102 | |||||
| Net loss before income taxes | (7,934,447 | ) | (2,791,668 | ) | ||||
| Income tax benefits | - | - | ||||||
| Net loss | $ | (7,934,447 | ) | $ | (2,791,668 | ) | ||
| Net loss per share, basic and diluted | $ | (0.53 | ) | $ | (0.25 | ) | ||
| Weighted average common shares outstanding, basic and diluted | 14,917,187 | 11,072,097 |
Statement Regarding Non-GAAP Financial Measures
press release contains references to non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Management believes these non-GAAP
financial measures are useful supplemental measures for planning, monitoring, and evaluating operational performance as they exclude
stock-based compensation expense, issuance of common
stock and non-cash interest from net loss and net loss per share. Management excludes these items because
they do not impact Celcuity's cash position, which management believes better enables Celcuity to focus on cash used in operations.
However, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share are not recognized measures under GAAP and do not have a
standardized meaning prescribed by GAAP. As a result, management's method of calculating non-GAAP adjusted net loss and non-GAAP
adjusted net loss per share may differ materially from the method used by other companies. Therefore, non-GAAP adjusted net loss and
non-GAAP adjusted net loss per share may not be comparable to similarly titled measures presented by other companies. Investors are cautioned
that non-GAAP adjusted net loss and non-GAAP adjusted net loss per share should not be construed as alternatives to net loss, net loss
per share or other statements of operations data (which are determined in accordance with GAAP) as an indicator of Celcuity's performance
or as a measure of liquidity and cash flows.
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss and
GAAP Net Loss Per Share to Non-GAAP Adjusted Net Loss Per Share
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP net loss | $ | (7,934,447 | ) | $ | (2,791,668 | ) | ||
| Adjustments: | ||||||||
| Stock-based compensation | ||||||||
| Research and development (1) | 450,520 | 255,181 | ||||||
| General and administrative (2) | 305,751 | 193,917 | ||||||
| Non-cash interest expense (3) | 197,098 | - | ||||||
| Non-GAAP adjusted net loss | $ | (6,981,078 | ) | $ | (2,342,570 | ) | ||
| GAAP net loss per share - basic and diluted | $ | (0.53 | ) | $ | (0.25 | ) | ||
| Adjustment to net loss (as detailed above) | 0.06 | 0.04 | ||||||
| Non-GAAP adjusted net loss per share | $ | (0.47 | ) | $ | (0.21 | ) | ||
| Weighted average common shares outstanding, basic and diluted | 14,917,187 | 11,072,097 |
| (1) | To reflect a non-cash charge to operating expense for Research and Development stock-based compensation. |
| (2) | To reflect a non-cash charge to operating expense for General and Administrative stock-based compensation. |
| (3) | To reflect a non-cash charge to other expense for amortization of debt issuance and discount costs and PIK interest related to the issuance of a note payable. |