Full Press Release Details
Inc. Reports Second Quarter 2023 Financial Results and Provides Corporate Updates
| - | Phase 3 VIKTORIA-1 clinical trial is now recruiting patients at nearly 200 sites in 20 countries | |
| - | Presented updated results from Phase 1b study of gedatolisib in treatment-na ve advanced breast cancer at the ESMO Breast Cancer Annual Congress |
August 10, 2023 - Celcuity Inc. (Nasdaq: CELC), a clinical-stage biotechnology company pursuing development of targeted therapies
for oncology, today reported financial results for the second quarter ended June 30, 2023 and provided other recent corporate updates.
enrollment in the Phase 3 VIKTORIA-1 trial is progressing in-line with our planned timeline. Nearly 200 sites are now recruiting patients
in 20 countries," said Brian Sullivan, CEO and Co-Founder of Celcuity. "We are also very encouraged by the updated median
PFS and DOR data we reported for gedatolisib in combination with letrozole and palbociclib in the first-line setting. These results continue
to drive our confidence that gedatolisib can play an important role in improving outcomes for women with HR+/HER2- advanced breast cancer,
regardless of PIK3CA-status."
Quarter 2023 Business Highlights and Other Recent Developments
| The Phase 3 VIKTORIA-1 clinical trial is now recruiting patients at nearly 200 sites in 20 countries. | ||
| VIKTORIA-1 is evaluating gedatolisib in combination with fulvestrant, an endocrine therapy, with and without palbociclib, a CDK4/6 inhibitor, in adults with HR+/HER2- advanced breast cancer. |
| For treatment-na ve patients from Escalation Arm A and Expansion Arm A (n=41), mPFS was 48.6 months, mDOR was 46.9 months, and ORR was 79%. | ||
| This data compares favorably to published data for current first-line standard-of-care treatments for patients with HR+/HER2- advanced breast cancer. |
| In April 2023, Celcuity presented a poster at the American Association for Cancer Research (AACR) Annual Meeting demonstrating gedatolisib's superior therapeutic activity relative to the various PI3K, AKT, and mTOR inhibitors, regardless of the cell lines' PTEN, PI3K, or AKT mutational status in endometrial, ovarian and cervical cancer cell lines. | |
| Enrollment is ongoing in the FACT-1 and FACT-2 trials for CELsignia selected patients who have early-stage HR+/HER2- breast cancer with interim results expected in the first half of 2024. |
Quarter 2023 Financial Results
otherwise stated, all comparisons are for the second quarter ended June 30, 2023, compared to the second quarter ended June 30, 2022.
operating expenses were $15.1 million for the second quarter of 2023, compared to $9.6 million for the second quarter of 2022. Net cash
used in operating activities for the second quarter of 2023 was $9.7 million, compared to $11.3 million for the second quarter of 2022.
and development (R&D) expenses were $13.7 million for the second quarter of 2023, compared to $8.4 million for the second quarter
of 2022. Of the approximately $5.4 million increase in research and development expenses, $0.5 million was related to increased employee
and consulting expenses. The remaining $4.9 million increase in research and development expenses was primarily the result of activities
supporting the VIKTORIA-1 pivotal trial.
and administrative (G&A) expenses were $1.3 million for the second quarter of 2023, compared to $1.2 million for the second quarter
loss for the second quarter of 2023 was $14.6 million, or $0.66 loss per share, compared to a net loss of $10.0 million, or $0.67 loss
per share, for the second quarter of 2022. Non-GAAP adjusted net loss for the second quarter of 2023 was $12.8 million, or $0.58 loss
per share, compared to non-GAAP adjusted net loss for the second quarter of 2022 of $8.3 million, or $0.55 per share. Non-GAAP adjusted
net loss excludes stock-based compensation expense and non-cash interest expense. 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 in the United States (GAAP) to non-GAAP
financial measures, please see the financial tables at the end of this press release.
June 30, 2023, Celcuity reported cash, cash equivalents and short-term investments of $146.2 million.
and Conference Call Information
Celcuity management team will host a webcast/conference call at 4:30 p.m. ET today to discuss the second quarter financial results and
provide a corporate update. To participate in the teleconference, domestic callers should dial 1-888-886-7786 and international callers
should dial 1-416-764-8658. A live webcast presentation can also be accessed using this weblink: https://viavid.webcasts.com/starthere.jsp?ei=1625068&tp_key=c09a941d3d.
A replay of the webcast will be available on the Celcuity website following the live event.
is a clinical-stage biotechnology company focused on development of targeted therapies for treatment of multiple solid tumor indications.
The company's lead therapeutic candidate is gedatolisib, a potent, pan-PI3K and mTOR inhibitor. 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.
A Phase 3 clinical trial, VIKTORIA-1, evaluating gedatolisib in combination with fulvestrant with or without palbociclib in patients
with HR+/HER2- advanced breast cancer is currently enrolling patients. More detailed information about the VIKTORIA-1 study can be found
at ClinicalTrials.gov. The company's 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
press release contains statements that constitute "forward-looking statements" including, but not limited to, the timing
of initiating and enrolling patients in, and receiving results from, clinical trials, such as Celcuity's Phase 3 VIKTORIA-1 clinical
trial, the costs and expected results from any ongoing or planned clinical trials, the impact on gedatolisib and Celcuity of preliminary
clinical trial results, any potential benefits resulting from Breakthrough Therapy designation for gedatolisib, and other expectations
with respect to Celcuity's lead product candidate, gedatolisib and its CELsignia platform. 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 risks, uncertainties, and conditions, many of which
are beyond the control of Celcuity. These include, but are not limited to, those risks set forth in the Risk Factors section in Celcuity's
Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 23, 2023,
as may be updated by our quarterly reports on Form 10-Q. 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
| June 30, 2023 | December 31, 2022 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 32,238,702 | $ | 24,571,557 | ||||
| Investments | 114,005,385 | 144,015,954 | ||||||
| Deposits | 22,009 | 22,009 | ||||||
| Deferred transaction costs | 79,088 | 33,195 | ||||||
| Payroll tax receivable | - | 203,665 | ||||||
| Prepaid assets | 6,461,156 | 6,344,157 | ||||||
| Total current assets | 152,806,340 | 175,190,537 | ||||||
| Property and equipment, net | 210,858 | 260,294 | ||||||
| Operating lease right-of-use assets | 499,993 | 246,266 | ||||||
| Total Assets | $ | 153,517,191 | $ | 175,697,097 | ||||
| Liabilities and Stockholders' Equity: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 3,019,282 | $ | 2,627,076 | ||||
| Finance lease liabilities | - | 2,449 | ||||||
| Operating lease liabilities | 191,333 | 191,749 | ||||||
| Accrued expenses | 3,871,135 | 4,060,280 | ||||||
| Total current liabilities | 7,081,750 | 6,881,554 | ||||||
| Operating lease liabilities | 317,120 | 61,002 | ||||||
| Note payable, non-current | 35,985,980 | 34,983,074 | ||||||
| Total Liabilities | 43,384,850 | 41,925,630 | ||||||
| Total Stockholders' Equity | 110,132,341 | 133,771,467 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 153,517,191 | $ | 175,697,097 |
Statements of Operations
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 13,746,082 | $ | 8,367,687 | $ | 25,024,575 | $ | 15,064,000 | ||||||||
| General and administrative | 1,309,403 | 1,233,040 | 2,578,447 | 2,044,332 | ||||||||||||
| Total operating expenses | 15,055,485 | 9,600,727 | 27,603,022 | 17,108,332 | ||||||||||||
| Loss from operations | (15,055,485 | ) | (9,600,727 | ) | (27,603,022 | ) | (17,108,332 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest expense | (1,314,996 | ) | (455,445 | ) | (2,557,008 | ) | (890,446 | ) | ||||||||
| Interest income | 1,782,794 | 95,646 | 3,633,926 | 103,805 | ||||||||||||
| Other income (expense), net | 467,798 | (359,799 | ) | 1,076,918 | (786,641 | ) | ||||||||||
| Net loss before income taxes | (14,587,687 | ) | (9,960,526 | ) | (26,526,104 | ) | (17,894,973 | ) | ||||||||
| Income tax benefits | - | - | - | - | ||||||||||||
| Net loss | $ | (14,587,687 | ) | $ | (9,960,526 | ) | $ | (26,526,104 | ) | $ | (17,894,973 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.66 | ) | $ | (0.67 | ) | $ | (1.22 | ) | $ | (1.20 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 21,957,140 | 14,930,538 | 21,819,772 | 14,923,900 |
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 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.
of GAAP Net Loss to Non-GAAP Adjusted Net Loss and
Net Loss Per Share to Non-GAAP Adjusted Net Loss Per Share
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| GAAP net loss | $ | (14,587,687 | ) | $ | (9,960,526 | ) | $ | (26,526,104 | ) | $ | (17,894,973 | ) | ||||
| Adjustments: | ||||||||||||||||
| Stock-based compensation | ||||||||||||||||
| Research and development (1) | 639,511 | 810,664 | 1,293,982 | 1,261,183 | ||||||||||||
| General and administrative (2) | 637,471 | 708,795 | 1,256,282 | 1,014,547 | ||||||||||||
| Non-cash interest expense (3) | 507,717 | 188,439 | 1,002,906 | 385,537 | ||||||||||||
| Non-GAAP adjusted net loss | $ | (12,802,988 | ) | $ | (8,252,627 | ) | $ | (22,972,934 | ) | $ | (15,233,706 | ) | ||||
| GAAP net loss per share - basic and diluted | $ | (0.66 | ) | $ | (0.67 | ) | $ | (1.22 | ) | $ | (1.20 | ) | ||||
| Adjustment to net loss (as detailed above) | 0.08 | 0.12 | 0.17 | 0.18 | ||||||||||||
| Non-GAAP adjusted net loss per share | $ | (0.58 | ) | $ | (0.55 | ) | $ | (1.05 | ) | $ | (1.02 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 21,957,140 | 14,930,538 | 21,819,772 | 14,923,900 |
To reflect a non-cash charge to operating expense for Research and Development stock-based compensation.
To reflect a non-cash charge to operating expense for General and Administrative stock-based compensation.
To reflect a non-cash charge to other expense for amortization of debt issuance and discount costs and PIK interest related to the issuance