Full Press Release Details
Gain Therapeutics Announces Third Quarter 2023 Financial Results and Business Update
Phase 1 clinical study of GT-02287 initiated; dosing escalation on schedule
BETHESDA, Md., Nov. 14, 2023 -- Gain Therapeutics, Inc. (Nasdaq: GANX) ("Gain", or the "Company"), a clinical-stage biotechnology company leading the discovery and development of the next generation of allosteric small molecule therapies, today announced financial results for the third quarter ended September 30, 2023, and highlighted recent corporate progress.
"With the compelling preclinical data we presented at the International Congress of Parkinson's Disease and Movement Disorders and the initiation of our Phase 1 clinical trial of GT-02287, we have made tremendous progress this past quarter," said Matthias Alder, Chief Executive Officer of Gain Therapeutics. "Dose escalation continues as planned, and we look forward to providing updates on the study in the first half of next year."
(AD): In a paper published in Nature Scientific Reports, Gain collaborators at the Institute for Research in Biomedicine and the NeuroCenter of Southern Switzerland of EOC have shown that GCase and lysosomal dysfunction is associated with tau accumulation. This provides further scientific validation of the potential of GT-02287 to provide a disease-modifying treatment not only in Parkinson's disease but also tauopathies such as Alzheimer's disease.
Research and development (R&D) expenses totaled $2.4 million for the three months ended September 30, 2023, compared to $2.0 million for the same period in 2022. The $0.4 million increase in R&D expense was primarily due to increases in costs associated with clinical and preclinical studies, quality and manufacturing as Gain's GBA1 PD program entered a Phase 1 clinical trial during the third quarter of 2023.
General and administrative (G&A) expenses totaled $2.5 million for the three months ended September 30, 2023, compared to $2.8 million for the same period in 2022. The decrease in G&A expenses of $0.3 million was primarily due to lower legal and professional fees.
Net loss for the three months ended September 30, 2023, was $4.7 million, or $0.37 per share basic and diluted, including non-cash stock-based compensation expense of $0.8 million, compared to a net loss of $4.6 million, or $0.38 per share basic and diluted, which included non-cash stock-based compensation expense of $0.4 million for the three months ended September 30, 2022.
Cash, cash equivalents and marketable securities were $12.3 million as of September 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 September 30, | Nine Months Ended September 30, | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Revenues: | |||||||||||||
| Collaboration revenues | $ | - | $ | - | $ | 55,180 | $ | 132,640 | |||||
| Other income | - | - | - | 7,468 | |||||||||
| Total revenues | $ | - | $ | - | $ | 55,180 | $ | 140,108 | |||||
| Operating expenses: | |||||||||||||
| Research and development | (2,367,482) | (1,964,784) | (9,146,630) | (6,103,448) | |||||||||
| General and administrative | (2,517,523) | (2,786,200) | (8,754,453) | (7,252,506) | |||||||||
| Total operating expenses | (4,885,005) | (4,750,984) | (17,901,083) | (13,355,954) | |||||||||
| Loss from operations | $ | (4,885,005) | $ | (4,750,984) | $ | (17,845,903) | $ | (13,215,846) | |||||
| Other income/(expense): | |||||||||||||
| Interest income, net | 106,000 | 153,332 | 387,964 | 211,580 | |||||||||
| Foreign exchange gain/(loss), net | 82,198 | 43,491 | (20,839) | 102,865 | |||||||||
| Loss before income tax | $ | (4,696,807) | $ | (4,554,161) | $ | (17,478,778) | $ | (12,901,401) | |||||
| Income tax | (21,456) | (4,048) | (64,773) | (14,871) | |||||||||
| Net loss | $ | (4,718,263) | $ | (4,558,209) | $ | (17,543,551) | $ | (12,916,272) | |||||
| Net loss per shares: | |||||||||||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.37) | $ | (0.38) | $ | (1.42) | $ | (1.09) | |||||
| Weighted average common shares - basic and diluted | 12,701,401 | 11,883,368 | 12,342,031 | 11,883,368 |
GAIN THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, | December 31, | ||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 4,272,501 | $ | 7,311,611 | |||
| Marketable securities - current | 7,960,311 | 12,826,954 | |||||
| Tax credits | 101,911 | 103,877 | |||||
| Prepaid expenses and other current assets | 906,834 | 848,854 | |||||
| Total current assets | $ | 13,241,557 | $ | 21,091,296 | |||
| Non-current assets: | |||||||
| Marketable securities - non current | $ | - | $ | 1,941,488 | |||
| Property and equipment, net | 127,393 | 144,379 | |||||
| Internal-use software | 189,242 | 213,967 | |||||
| Operating lease - right of use assets | 490,759 | 659,933 | |||||
| Restricted cash | 31,145 | 30,818 | |||||
| Long-term deposits and other non-current assets | 17,352 | 17,506 | |||||
| Total non-current assets | 855,891 | 3,008,091 | |||||
| Total assets | $ | 14,097,448 | $ | 24,099,387 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,376,859 | $ | 1,626,100 | |||
| Operating lease liability - current | 231,164 | 229,080 | |||||
| Other current liabilities | 2,692,587 | 2,106,756 | |||||
| Deferred income - current | 1,353,541 | 55,180 | |||||
| Loans - current | 109,281 | 108,135 | |||||
| Total current liabilities | $ | 5,763,432 | $ | 4,125,251 | |||
| Non-current liabilities: | |||||||
| Defined benefit pension plan | $ | 160,512 | $ | 157,580 | |||
| Operating lease liability - non-current | 263,460 | 441,784 | |||||
| Deferred income - non-current | 144,339 | - | |||||
| Loans - non-current | 434,938 | 495,258 | |||||
| Total non-current liabilities | 1,003,249 | 1,094,622 | |||||
| Total liabilities | $ | 6,766,681 | $ | 5,219,873 | |||
| Stockholders' equity | |||||||
| Preferred stock, $0.0001 par value; 10,000,000 shares authorized; nil shares issued and outstanding as of September 30, 2023 and December 31, 2022. | - | - | |||||
| Common stock, $0.0001 par value: 50,000,000 shares authorized; 12,782,861 issued and outstanding as of September 30, 2023; 11,883,368 issued and outstanding as of December 31, 2022. | 1,278 | 1,189 | |||||
| Additional paid-in capital | 63,298,577 | 57,358,895 | |||||
| Accumulated other comprehensive income | 90,660 | 35,627 | |||||
| Accumulated deficit | (38,516,197) | (20,925,459) | |||||
| Loss for the period | (17,543,551) | (17,590,738) | |||||
| Total stockholders' equity | 7,330,767 | 18,879,514 | |||||
| Total liabilities and stockholders' equity | $ | 14,097,448 | $ | 24,099,387 |
Gain Therapeutics' lead drug candidate, GT-02287, is in development for the treatment of GBA1 Parkinson's disease (GBA1-PD). The orally administered, brain-penetrant small molecule is an allosteric protein modulator that restores the function of the lysosomal protein enzyme glucocerebrosidase (GCase) which becomes misfolded and impaired due to a GBA1 gene mutation, the most common genetic abnormality associated with PD. In preclinical models of PD, GT-02287 restored GCase enzymatic function, reduced aggregated -synuclein, neuroinflammation and neuronal death, increased dopamine levels and improved motor function. Additionally, GT-02287 significantly reduced plasma neurofilament light chain (NfL) levels, an emerging biomarker for neurodegeneration.
The program has been awarded funding support from The Michael J. Fox Foundation for Parkinson's Research (MJFF), The Silverstein Foundation for Parkinson's with GBA, and InnoSuisse.
About GBA1 Parkinson's Disease
GBA1 Parkinson's disease is caused by mutations in the GBA1 gene, found in up to 15% of patients with Parkinson's disease and making it the primary genetic risk factor. The mutation causes dysfunctional misfolding of the lysosomal enzyme glucocerebrosidase (GCase), reducing its activity in the brain and leading to the subsequent accumulation of -synuclein and neurodegeneration of dopamine cells. Patients with GBA1-PD tend to have earlier onset and faster symptom progression than sporadic PD, a progressive neurodegenerative disease characterized by a motor syndrome consisting of bradykinesia (slowness of movement), rigidity, resting tremors, and postural instability. With current therapies treating only the symptoms of Parkinson's disease without affecting the underlying progression of the disease, there is an unmet need to develop novel disease-modifying therapies such as GT-02287 that have the potential to slow or stop disease progression and help improve outcomes in this patient population.
About Gain Therapeutics, Inc.
Gain Therapeutics, Inc. is a clinical-stage 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, is currently being evaluated in a Phase 1 clinical trial.
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 the timing of results from a Phase 1 clinical study for GT-02287; the potential therapeutic and clinical benefits of the Company's product candidates; 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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