Full Press Release Details
Denali Therapeutics Reports First Quarter 2019 Financial Results
SOUTH SAN FRANCISCO - May 8, 2019 - Denali Therapeutics Inc. (NASDAQ DNLI), a biopharmaceutical company developing a broad portfolio of product candidates for neurodegenerative diseases, today reported financial results for the first quarter ended March 31, 2019.
First Quarter 2019 Financial Results
For the three months ended March 31, 2019, Denali reported a net loss of $39.0 million compared with a net loss of $23.7 million for the three months ended March 31, 2018.
Collaboration revenue was $4.2 million for the three months ended March 31, 2019, compared with collaboration revenue of $0.6 million for the three months ended March 31, 2018. The increase was due to $3.5 million of revenue recognized under the Sanofi Collaboration Agreement in the three months ended March 31, 2019.
Total research and development expenses were $37.4 million for the three months ended March 31, 2019, including non-cash stock-based compensation of $4.0 million, compared to $20.8 million for the three months ended March 31, 2018, including non-cash stock-based compensation of $1.7 million. The increase in total research and development expenses of $16.6 million was primarily attributable to increases in personnel-related expenses, including non-cash stock-based compensation, driven primarily by higher headcount and new option grants. Further, there were increases in external research and development expenses, reflecting both the progress of Denali's most advanced programs and increased investment in growing and developing its pipeline, and facilities-related expenses primarily due to rent expense.
General and administrative expenses were $9.3 million for the three months ended March 31, 2019, including non-cash stock-based compensation of $2.9 million, compared to $5.6 million for the three months ended March 31, 2018, including non-cash stock-based compensation of $1.2 million. The increase in total general and administrative expenses of $3.7 million was primarily attributable to an increase in personnel-related expenses, including non-cash stock-based compensation, driven primarily by higher headcount and new option grants. Further, there were increases in legal and professional services expenses required to support Denali's ongoing operations as a public company, and facilities-related expenses primarily due to rent expense.
Cash, cash equivalents, and marketable securities were $583.0 million as of March 31, 2019.
About Denali Therapeutics
Denali is a biopharmaceutical company developing a broad portfolio of product candidates for neurodegenerative diseases. Denali pursues new treatments by rigorously assessing genetically validated targets, engineering delivery across the blood-brain barrier and guiding development with biomarker monitoring to demonstrate target engagement and select patients. Denali is based in South San Francisco. For additional information, please visit www.denalitherapeutics.com.
Denali Therapeutics Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
| Three Months Ended March 31, | |||||
| 2019 | 2018 | ||||
| Collaboration revenue | $ | 4,205 | $ | 641 | |
| Operating expenses | |||||
| Research and development | 37,403 | 20,819 | |||
| General and administrative | 9,310 | 5,570 | |||
| Total operating expenses | 46,713 | 26,389 | |||
| Loss from operations | (42,508) | (25,748) | |||
| Interest and other income, net | 3,516 | 2,070 | |||
| Net loss | $ | (38,992) | $ | (23,678) | |
| Net loss per share, basic and diluted | $ | (0.41) | $ | (0.26) | |
| Weighted average number of shares outstanding, basic and diluted | 94,984,503 | 89,560,576 |
Denali Therapeutics Inc.
Condensed Consolidated Balance Sheets
| March 31, 2019 | December 31, 2018 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 39,661 | $ | 77,123 | |
| Short-term marketable securities | 445,820 | 387,174 | |||
| Prepaid expenses and other current assets | 14,052 | 16,539 | |||
| Total current assets | 499,533 | 480,836 | |||
| Long-term marketable securities | 97,554 | 147,881 | |||
| Property and equipment, net | 36,955 | 25,162 | |||
| Operating lease right-of-use asset | 34,407 | - | |||
| Other non-current assets | 8,147 | 8,105 | |||
| Total assets | $ | 676,596 | $ | 661,984 | |
| Liabilities and stockholders' equity | |||||
| Current liabilities | |||||
| Accounts payable | $ | 3,662 | $ | 1,891 | |
| Accrued liabilities | 12,114 | 8,520 | |||
| Accrued compensation | 3,213 | 9,952 | |||
| Contract liabilities | 23,148 | 11,427 | |||
| Other current liabilities | 1,107 | 996 | |||
| Total current liabilities | 43,244 | 32,786 | |||
| Contract liabilities, less current portion | 44,852 | 57,350 | |||
| Operating lease liability, less current portion | 71,412 | - | |||
| Deferred rent, less current portion | - | 24,532 | |||
| Other non-current liabilities | 440 | 471 | |||
| Total liabilities | 159,948 | 115,139 | |||
| Total stockholders' equity | 516,648 | 546,845 | |||
| Total liabilities and stockholders' equity | $ | 676,596 | $ | 661,984 |