Full Press Release Details
Gain Therapeutics Announces Second Quarter 2023 Financial Results and Business Update
HREC application submitted; on track to initiate Phase 1 clinical study of GT-02287 this year
Acceptance of late breaking abstract for presentation at the International Congress of Parkinson's Disease and Movement Disorders in Copenhagen, Denmark
BETHESDA, Md., Aug. 10, 2023 -- Gain Therapeutics, Inc. (Nasdaq: GANX) ("Gain", or the "Company"), a biotechnology company leading the discovery and development of the next generation of allosteric small molecule therapies, today announced financial results for the second quarter ended June 30, 2023, and highlighted recent corporate progress.
"We are excited to announce the submission of the dossier application to begin Phase 1 clinical trials of GT-02287, our GCase-targeting drug candidate for GBA1 Parkinson's disease," said Matthias Alder, Chief Executive Officer of Gain Therapeutics. "GT-02287 has demonstrated positive preclinical results with potential application across a range of neurodegenerative diseases beyond GBA1 Parkinson's disease. We look forward to commencing the evaluation of the safety of this promising candidate in healthy volunteers in the second half of this year."
Research and development (R&D) expenses totaled $4.0 million for the three months ended June 30, 2023, compared to $2.6 million for the same period in 2022. The $1.4 million increase in R&D expense was primarily due to increases in costs associated with preclinical studies, quality and clinical manufacturing as Gain's GBA1 Parkinson's disease program advances toward clinical trials. The increase in R&D expense was also due to higher personnel-related costs associated with an increase in employee headcount.
General and administrative (G&A) expenses totaled $3.7 million for the three months ended June 30, 2023, compared to $2.7 million for the same period in 2022. The increase in G&A expenses of $1.0 million was primarily due to higher legal fees, accounting, information technology costs and increased investor relations expenses. The increase in G&A expenses was also due to an increase in personnel-related costs.
Net loss for the three months ended June 30, 2023, was $7.7 million, or $0.62 per share basic and diluted, including non-cash stock-based compensation expense of $1.3 million, compared to a net loss of $5.1 million, or $0.43 per share basic and diluted, which included non-cash stock-based compensation expense of $0.4 million for the period ended June 30, 2022.
Cash, cash equivalents and marketable securities were $16.2 million as of June 30, 2023, which the Company believes is sufficient to support operations into the third quarter of 2024.
GAIN THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Revenues: | ||||||||||||
| Collaboration revenues | $ | - | $ | 95,102 | $ | 55,180 | $ | 132,640 | ||||
| Other income | - | - | - | 7,468 | ||||||||
| Total revenues | $ | - | $ | 95,102 | $ | 55,180 | $ | 140,108 | ||||
| Operating expenses: | ||||||||||||
| Research and development | (3,987,943) | (2,582,224) | (6,779,148) | (4,138,664) | ||||||||
| General and administrative | (3,743,171) | (2,689,263) | (6,236,930) | (4,466,306) | ||||||||
| Total operating expenses | (7,731,114) | (5,271,487) | (13,016,078) | (8,604,970) | ||||||||
| Loss from operations | $ | (7,731,114) | $ | (5,176,385) | $ | (12,960,898) | $ | (8,464,862) | ||||
| Other income/(expense): | ||||||||||||
| Interest income, net | 129,929 | 59,899 | 281,964 | 58,248 | ||||||||
| Foreign exchange gain/(loss), net | (60,195) | 40,212 | (103,037) | 59,374 | ||||||||
| Loss before income tax | $ | (7,661,380) | $ | (5,076,274) | $ | (12,781,971) | $ | (8,347,240) | ||||
| Income tax | (26,589) | (9,146) | (43,317) | (10,823) | ||||||||
| Net loss | $ | (7,687,969) | $ | (5,085,420) | $ | (12,825,288) | $ | (8,358,063) | ||||
| Net loss per shares: | ||||||||||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.62) | $ | (0.43) | $ | (1.05) | $ | (0.70) | ||||
| Weighted average common shares - basic and diluted | 12,387,089 | 11,883,368 | 12,157,969 | 11,883,368 |
GAIN THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | |||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 6,319,925 | $ | 7,311,611 | ||
| Marketable securities - current | 9,873,209 | 12,826,954 | ||||
| Tax credits | 160,730 | 103,877 | ||||
| Prepaid expenses and other current assets | 954,584 | 848,854 | ||||
| Total current assets | $ | 17,308,448 | $ | 21,091,296 | ||
| Non-current assets: | ||||||
| Marketable securities - non current | $ | - | $ | 1,941,488 | ||
| Property and equipment, net | 138,556 | 144,379 | ||||
| Internal-use software | 204,549 | 213,967 | ||||
| Operating lease - right of use assets | 559,771 | 659,933 | ||||
| Restricted cash | 31,816 | 30,818 | ||||
| Long-term deposits and other non-current assets | 17,734 | 17,506 | ||||
| Total non-current assets | 952,426 | 3,008,091 | ||||
| Total assets | $ | 18,260,874 | $ | 24,099,387 | ||
| Liabilities and stockholders' equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 924,390 | $ | 1,626,100 | ||
| Operating lease liability - current | 235,798 | 229,080 | ||||
| Other current liabilities | 3,247,233 | 2,106,756 | ||||
| Deferred income - current | 1,069,107 | 55,180 | ||||
| Loans - current | 111,636 | 108,135 | ||||
| Total current liabilities | $ | 5,588,164 | $ | 4,125,251 | ||
| Non-current liabilities: | ||||||
| Defined benefit pension plan | $ | 174,185 | $ | 157,580 | ||
| Operating lease liability - non-current | 330,071 | 441,784 | ||||
| Deferred income - non-current | 608,982 | - | ||||
| Loans - non-current | 466,638 | 495,258 | ||||
| Total non-current liabilities | 1,579,876 | 1,094,622 | ||||
| Total liabilities | $ | 7,168,040 | $ | 5,219,873 | ||
| Stockholders' equity | ||||||
| Preferred stock, $0.0001 par value; 10,000,000 shares authorized; nil shares issued and outstanding as of June 30, 2023 and December 31, 2022. | - | - | ||||
| Common stock, $0.0001 par value: 50,000,000 shares authorized; 12,632,327 issued and outstanding as of June 30, 2023; 11,883,368 issued and outstanding as of December 31, 2022. | 1,263 | 1,189 | ||||
| Additional paid-in capital | 62,298,733 | 57,358,895 | ||||
| Accumulated other comprehensive income | 134,323 | 35,627 | ||||
| Accumulated deficit | (38,516,197) | (20,925,459) | ||||
| Loss for the period | (12,825,288) | (17,590,738) | ||||
| Total stockholders' equity | 11,092,834 | 18,879,514 | ||||
| Total liabilities and stockholders' equity | $ | 18,260,874 | $ | 24,099,387 |
About Gain Therapeutics, Inc.
Gain Therapeutics, Inc. is a biotechnology company leading the discovery and development of next generation allosteric therapies. Gain's lead drug candidate GT-02287, in development for the treatment of GBA1 Parkinson's disease, has completed IND-enabling GLP toxicology studies. Clinical evaluation of GT-02287 is expected to begin this year.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical facts are "forward-looking statements". In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "goal, " "intend," "seek, " "potential" or "continue," the negative of these terms and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding: the development of the Company's current or future product candidates including GT-02287; expectations regarding timing for reporting data from ongoing preclinical studies or the initiation of future clinical trials, including the timing of commencement of a Phase 1 clinical program for GT-02287 for GBA1 Parkinson's disease; the potential therapeutic and clinical benefits of the Company's product candidates; the selection and development, and timing thereof, of future programs including the selection of a lead series for its preclinical oncology program; the Company's financial position and ability to execute on the next phase of its strategy; and the Company's anticipated cash runway guidance, including the ability for the Company's current and projected cash to allow the Company to meet value inflection points. These forward-looking statements are based on the Company's expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties that could cause the Company's preclinical and future clinical development programs, future results or performance to differ materially from those expressed or implied by the forward-looking statements. These statements are not historical facts but instead represent the Company's belief regarding future results, many of which, by their nature, are inherently uncertain and outside the Company's control. Many factors may cause differences between current expectations and actual results, including the impacts of the post-COVID-19 environment and other global and macroeconomic conditions on the Company's business; clinical trials and financial position; unexpected safety or efficacy data observed during preclinical studies or clinical trials, clinical trial site activation or enrollment rates that are lower than expected; changes in expected or existing competition; changes in the regulatory environment; the uncertainties and timing of the regulatory approval process; and unexpected litigation or other disputes. Other factors that may cause the Company's actual results to differ from those expressed or implied in the forward-looking statements in this press release are identified in the section titled "Risk Factors," in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 23, 2023 and its other documents subsequently filed with or furnished to the Securities and Exchange Commission from time to time. All forward-looking statements contained in this press release speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
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