Full Press Release Details
Gain Therapeutics Reports Financial Results for Year End 2023 and Provides Corporate Update
BETHESDA, Md., March 26, 2024 - 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 reports financial results for the year ended December 31, 2023 and provides a corporate update.
Corporate Highlights from Q4 2023 to Date
"With the tremendous progress we have made over the course of 2023 and entering 2024, we believe Gain is well positioned to achieve multiple clinical data driven value inflection points with our lead program GT-02287 for GBA1 Parkinson's disease during the course of this year and into 2025. We believe our cash position and operational plans are strong and allow us to meet our near-term milestones," said Matthias Alder, Gain Therapeutics' CEO. "We are encouraged by the safety and tolerability profile of GT-02287 in healthy subjects that we have observed so far in the ongoing Phase 1 clinical trial and remain on track to complete that study by mid-year," concluded Mr. Alder.
2023 Year End Financial Results
Research and development (R&D) expenses increased by $3.1 million to $11.5 million for the year ended December 31, 2023, from $8.4 million for the year ended December 31, 2022. The increase in research and development expenses was primarily attributable to increases in external R&D services and external expenses related to the commencement and conduct of our Phase 1 clinical trial with our lead drug candidate GT-02287 for the treatment of GBA1 Parkinson's disease.
General and administrative (G&A) expenses increased by $1.3 million to $10.8 million for the year ended December 31, 2023, from $9.5 million for the year ended December 31, 2022. The increase in general and administrative expenses was primarily attributable to increases in professional fees for corporate compliance consulting and non-cash costs related to share-based compensation.
Net loss for the year ended December 31, 2023 was $22.3 million, compared to a net loss of $17.6 million for the year ended December 31, 2022. Net loss as of December 31, 2023 included non-cash compensation expenses of $3.3 million as compared to 2022 non-cash compensation expenses of $1.5 million. The increase in net loss for 2023 compared to 2022 was primarily attributable to increases in R&D expenses of $3.1 million and G&A expenses of $1.3 million.
GAAP basic and diluted net loss per share for the year ended December 31, 2023 was $1.71, as compared to basic and diluted net loss per share of $1.48 as of December 31, 2022.
Cash, cash equivalent and marketable securities were $16.8 million as of December 31, 2023. We anticipate that our existing cash, cash equivalent and marketable securities will be sufficient to support operations into Q1 2025.
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 for the treatment of GBA1 Parkinson's disease, is currently being evaluated in a Phase 1 clinical trial.
Leveraging AI-supported structural biology, proprietary algorithms and supercomputer-powered physics-based models, the company's Magellan drug discovery platform can identify novel allosteric binding sites on disease-implicated proteins, pinpointing pockets that cannot be found or drugged with current technologies. Magellan is the next generation of Gain's original SEE-Tx (Site-Directed Enzyme Enhancement Therapy) platform, which was enhanced and expanded with new AI and machine-learning tools and virtual screening capabilities to access the emerging on-demand compound libraries covering vast chemical spaces of over 50 billion compounds.
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; and the amount of time the Company's current cash, cash equivalents and marketable securities will support operations. 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.
Nic Johnson and Elio Ambrosio
Gain Therapeutics, Inc
Consolidated Statement of Operations
| Year Ended December 31, | ||||||
| 2023 | 2022 | |||||
| Revenues: | ||||||
| Collaboration revenues | $ | 55,180 | $ | 132,640 | ||
| Other income | - | 7,468 | ||||
| Total revenues | 55,180 | 140,108 | ||||
| Operating expenses: | ||||||
| Research and development | (11,520,613) | (8,377,290) | ||||
| General and administrative | (10,787,700) | (9,539,863) | ||||
| Total operating expenses | (22,308,313) | (17,917,153) | ||||
| Loss from operations | (22,253,133) | (17,777,045) | ||||
| Other income (expense): | ||||||
| Interest income, net | 494,234 | 375,357 | ||||
| Foreign exchange loss, net | (429,346) | (96,074) | ||||
| Loss before income tax | $ | (22,188,245) | $ | (17,497,762) | ||
| Income tax | (79,275) | (92,976) | ||||
| Net loss | $ | (22,267,520) | $ | (17,590,738) | ||
| Net loss per shares: | ||||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (1.71) | $ | (1.48) | ||
| Weighted average common stock - basic and diluted | 13,011,361 | 11,883,368 |
Gain Therapeutics, Inc
Consolidated Balance Sheets
| December 31, | December 31, | |||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 11,794,949 | $ | 7,311,611 | ||
| Marketable securities - current | 4,999,704 | 12,826,954 | ||||
| Tax credits | 242,577 | 103,877 | ||||
| Prepaid expenses and other current assets | 741,638 | 848,854 | ||||
| Total current assets | $ | 17,778,868 | $ | 21,091,296 | ||
| Non-current assets: | ||||||
| Marketable securities - non current | $ | - | $ | 1,941,488 | ||
| Property and equipment, net | 125,962 | 144,379 | ||||
| Internal-use software | 193,375 | 213,967 | ||||
| Operating lease - right of use assets | 459,215 | 659,933 | ||||
| Restricted cash | 34,021 | 30,818 | ||||
| Long-term deposits and other non-current assets | 17,890 | 17,506 | ||||
| Total non-current assets | 830,463 | 3,008,091 | ||||
| Total assets | $ | 18,609,331 | $ | 24,099,387 | ||
| Liabilities and stockholder's equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1,318,965 | $ | 1,626,100 | ||
| Operating lease liability - current | 229,693 | 229,080 | ||||
| Other current liabilities | 2,160,366 | 2,106,756 | ||||
| Deferred income - current | 1,122,138 | 55,180 | ||||
| Loans - current | 118,797 | 108,135 | ||||
| Total current liabilities | $ | 4,949,959 | $ | 4,125,251 | ||
| Non-current liabilities: | ||||||
| Defined benefit pension plan | $ | 307,454 | $ | 157,580 | ||
| Operating lease liability - non-current | 229,855 | 441,784 | ||||
| Deferred income - non-current | 94,786 | - | ||||
| Loans - non-current | 449,053 | 495,258 | ||||
| Total non-current liabilities | 1,081,148 | 1,094,622 | ||||
| Total liabilities | $ | 6,031,107 | $ | 5,219,873 | ||
| Stockholders' equity | ||||||
| Preferred stock, $0.0001 par value; 10,000,000 shares authorized; nil shares issued and outstanding as of December 31, 2023 and 2022 | $ | - | $ | - | ||
| Common stock, $0.0001 par value: 50,000,000 shares authorized; 16,206,680 shares issued and outstanding as of December 31, 2023 and 11,883,368 shares issued and outstanding as of December 31, 2022 | 1,621 | 1,189 | ||||
| Additional paid-in capital | 73,113,079 | 57,358,895 | ||||
| Accumulated other comprehensive income | 247,241 | 35,627 | ||||
| Accumulated deficit | (38,516,197) | (20,925,459) | ||||
| Loss of the period | (22,267,520) | (17,590,738) | ||||
| Total stockholders' equity | 12,578,224 | 18,879,514 | ||||
| Total liabilities and stockholders' equity | $ | 18,609,331 | $ | 24,099,387 |