Full Press Release Details
Corbus Pharmaceuticals Reports 2015 Second Quarter Financial Results and Provides Business Update
Norwood, MA (August 13, 2015) Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP) ( Corbus or the Company ), a
clinical stage drug development company targeting rare, chronic, and serious inflammatory and fibrotic diseases, announced today its financial results for the quarter ended June 30, 2015.
The Company also provided an update on its corporate progress and the clinical status for its investigational drug Resunab , a novel oral drug
that resolves chronic inflammation and fibrotic processes. Resunab is currently in a Phase 2 clinical study in skin-predominant dermatomyositis and is scheduled to commence Phase 2 clinical trials for the treatment of cystic fibrosis
( CF ) and diffuse cutaneous systemic sclerosis ( scleroderma ) during the third quarter.
Corporate Highlights
We have continued to make notable progress advancing our clinical programs for Resunab with the start of patient dosing in our
dermatomyositis Phase 2 study, funded by the NIH, as well as preparing for the launch our Phase 2 studies in CF and systemic sclerosis, commented Yuval Cohen, Ph.D., Chief Executive Officer of the Company. We anticipate continued
momentum in the near-term with additional clinical, pre-clinical, regulatory and corporate milestones.
Expected Near-Term Milestones
The next twelve months will be extremely important for the Company. We remain focused on the successful execution of our clinical development programs
and believe that Resunab offers the best therapeutic approach to reducing the inflammatory and fibrotic components that play such key roles in the disease progression of CF, scleroderma and dermatomyositis, stated Dr. Cohen.
Importantly, we look to expanding our pipeline, both within as well as by acquiring external assets.
Summary of Financial Results for
For the three months ended June 30, 2015, the Company reported a net loss of approximately $2,563,000, or a net loss per
diluted share of $0.10, compared to a net loss of approximately $505,000 or a net loss per diluted share of $0.02 for the three months ended June 30, 2014. For the six months ended June 30, 2015, the Company reported a net loss of
approximately $4,098,000 or a net loss per diluted share of $0.16, compared to a net loss of approximately $621,000 or a net loss per diluted share of $0.04 for the three months ended June 30, 2014. The increase in the net loss for the three
and six months ended June 30, 2015 is attributable to a ramp up of the Company s operations to support the upcoming clinical trials in scleroderma and cystic fibrosis and the costs associated with being a public company.
For the six months ended June 30, 2015, the Company received approximately $4.4 million from the exercise of warrants. In May 2015, the Company received
a $1,250,000 milestone payment from the Cystic Fibrosis Foundation. The Company ended the quarter with approximately $9,243,153 of cash and cash equivalents.
Further, in July 2015 the Company issued a call notice for the redemption of certain outstanding warrants issued to investors from April 2014 through May
2014. On August 26, 2015, all Investor Warrants that are not exercised will be redeemed at a price of $0.0001 per Investor Warrant. The redemption of the remaining warrants is expected to total up to $6.2 million of additional gross proceeds if
all of the warrants are exercised.
Based on management s current projections, it believes it has sufficient financial resources to fund
operations into the fourth quarter of 2016.
Resunab is a novel synthetic oral drug that is a preferential agonist to the CB2 receptor expressed on activated immune cells. CB2 activation triggers
endogenous pathways that resolve inflammation and halt fibrosis. Pre-clinical and Phase 1 studies have shown Resunab to have a favorable safety, tolerability and pharmacokinetic profile. It has also demonstrated promising potency in pre-clinical
models of inflammation and fibrosis. Resunab triggers resolution of inflammation by increasing production of Specialized Pro-resolving Lipid Mediators of Inflammation and anti-inflammatory mediators, while reducing production of
pro-inflammatory mediators and reducing the numbers of immune cells in affected tissues. Resunab has direct effects on fibroblasts to halt tissue scarring. In effect, Resunab triggers endogenous pathways to turn off chronic inflammation
and fibrotic processes, without causing immunosuppression.
Corbus Pharmaceuticals Holdings, Inc. is a clinical stage pharmaceutical company focused on the development and commercialization of novel therapeutics to
treat rare, chronic and serious inflammatory and fibrotic diseases. Our lead product candidate Resunab is a novel oral drug that resolves chronic inflammation and fibrotic processes. Resunab is scheduled to commence Phase 2 clinical trials for
the treatment of cystic fibrosis and diffuse cutaneous systemic sclerosis ( scleroderma ) in 2015. In July 2015, we initiated a Phase 2 clinical trial of Resunab in skin-predominant dermatomyositis funded by a grant from the National
Institute of Arthritis and Musculoskeletal and Skin Diseases of the National Institutes of Health to the University of Pennsylvania School of Medicine.
For more information, please visit www.CorbusPharma.com and connect with the Company on Twitter, LinkedIn, Google+ and Facebook.
Forward-Looking Statements
This press release contains
certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to
the Company s product development, clinical and regulatory timelines, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statement that are
predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management s current beliefs and assumptions.
These statements may be identified by the use of forward-looking expressions, including, but not limited to,
expect, anticipate, intend, plan, believe, estimate, potential, predict, project, should, would and similar
expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements to
be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company s filings with the Securities and Exchange Commission.
Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether
as a result of new information, future events or otherwise.
Corbus Pharmaceuticals Holdings, Inc.
Condensed Consolidated Statements of Operations
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Collaboration revenue | $ | 113,636 | $ | $ | 113,636 | $ | ||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,707,256 | 169,443 | 2,430,686 | 231,360 | ||||||||||||
| General and administrative | 969,076 | 294,854 | 1,780,945 | 338,582 | ||||||||||||
| Total operating expenses | 2,676,332 | 464,297 | 4,211,631 | 569,942 | ||||||||||||
| Operating loss | (2,562,696 | ) | (464,297 | ) | (4,097,995 | ) | (569,942 | ) | ||||||||
| Other expense: | ||||||||||||||||
| Interest expense | (393 | ) | (11,232 | ) | (1,372 | ) | (22,395 | ) | ||||||||
| Interest income | 548 | 578 | 1,108 | 623 | ||||||||||||
| Change in fair value of warrant liability | (29,966 | ) | (28,448 | ) | ||||||||||||
| Foreign currency exchange loss | 309 | (425 | ) | |||||||||||||
| Other income (expense), net | 155 | (40,311 | ) | (264 | ) | (50,645 | ) | |||||||||
| Net loss | $ | (2,562,541 | ) | $ | (504,608 | ) | $ | (4,098,259 | ) | $ | (620,587 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.10 | ) | $ | (0.02 | ) | $ | (0.16 | ) | $ | (0.04 | ) | ||||
| Weighted average number of common shares outstanding, basic and diluted | 26,901,100 | 22,071,172 | 26,434,174 | 14,532,561 |
Corbus Pharmaceuticals Holdings, Inc.
Condensed Consolidated Balance Sheets
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,243,153 | $ | 6,262,445 | ||||
| Prepaid expenses | 249,143 | 270,556 | ||||||
| Total current assets | 9,492,296 | 6,533,001 | ||||||
| Restricted cash | 13,730 | 13,728 | ||||||
| Property and equipment, net | 58,725 | 54,044 | ||||||
| Total assets | $ | 9,564,751 | $ | 6,600,773 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Notes payable | $ | $ | 144,389 | |||||
| Accounts payable | 1,069,213 | 344,160 | ||||||
| Accounts payable-related party | 200,000 | |||||||
| Accrued expenses | 390,038 | 249,491 | ||||||
| Deferred revenue, current | 681,616 | |||||||
| Total current liabilities | 2,340,867 | 593,651 | ||||||
| Deferred revenue, non-current | 454,748 | |||||||
| Total liabilities | 2,795,615 | 593,651 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders equity | ||||||||
| Preferred Stock $0.0001 par value: 10,000,000 shares authorized, no shares issued and outstanding at June 30, 2015 and December 31, 2014 | ||||||||
| Common stock, $0.0001 par value; 150,000,000 shares authorized, 30,745,627 and 25,938,332 shares issued and outstanding at June 30, 2015 and December 31, 2014 | 3,075 | 2,594 | ||||||
| Additional paid-in capital | 15,291,395 | 10,287,214 | ||||||
| Accumulated deficit | (8,525,334 | ) | (4,427,075 | ) | ||||
| Total stockholders equity | 6,769,136 | 5,862,733 | ||||||
| Total liabilities and stockholders equity | $ | 9,564,751 | $ | 6,456,384 |
Jenene Thomas Communications, LLC
Phone: +1 (908) 938-1475
David Schull or Marissa Goberdhan
Phone: +1 (858) 717-2310
Source: Corbus Pharmaceuticals Holdings, Inc.